Insurance Claims

[Edge]

I had a vacant rental house have the copper plumbing stolen out of it this weekend. I don't have the estimates back from my handyman yet, but I will have to ultimately make the decision to file a claim or write the check myself.

My main concern it what it will do to my rates or even ability to keep insurance. This property is actually in my name (not the LLC because I was considering a refi) so could a claim impact my primary residency insurance premium also? I do have the same insurance company for my rentals and primary home.

I may be making a bigger issue out of this than it actually is, but I've just always heard it isn't a good idea to file a homeowners claim. Anyone willing to share their experience with filing a theft/vandalism claim on a rental property?

 

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[hakrjak]

Hey man -- this is the reason you have insurance, and the reason you've shelled out thousands in premiums in the past. You should never be afraid to place a legit claim.

My feelings on insurance: If I'm not taking back atleast half of what I'm putting in via premiums, then I'm not getting good value from it.

Also, I believe that you should always carry the max deductable. In my state, it's $1500 or 1.5% the properties value, whichever is less. In my past experience with collecting insurance claims -- They will always pay you atleast $1500 more than what it costs you to make a repair. They use high end contractors to get their claim estimates, etc -- and if you are using your trusted handyman, or someone you have given past business to -- you can always come in $1500 under budget.

I also love the common cause clause... In my policies, if damage is caused by a common cause (i.e. a single hail storm) -- I only pay the deductable 1 time... So last year I replaced 4 roofs due to hail damage from a single storm, and I only paid the $1500 one time.... Result was I ended up with thousands extra in my pocket once all the roofs were replaced.

Don't be a sucker That's how these guys make their money.

Cheers,

- Hakrjak