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Residential Real Estate And Water Damage Claims What You Should Know
omeowners’ insurance is a study showed that 25 percent of
must for any owner of insurance companies refused to
residential real estate. It renew policies for residential
has been around for many years, real estate owners, who made one
coming to the rescue of many real or two non-water damage claims
estate homeowners. Leaky pipes within the past three years. The
and their subsequent damage have figure rose to 32 percent, when
been causing homeowners grief for the claims were water
an even longer time. Homeowners’ damage-related. This means the
insurance has alleviated such insurers are paying the
problems by underwriting the cost legitimate claims but are apt to
for repairs. drop those real estate customers
at policy renewal time.
I remember as a child my father
making repairs with money from Additionally, all insurers share
our homeowner’s insurance policy. claims information through the
He told me that there was never a Comprehensive Loss Underwriting
claim too small, unless it was Exchange (CLUE) database. Not
within the deductible range. only are you apt to be dropped by
your current residential real
While my father’s information was estate insurer, but others may
correct for the times, the rules not approve you. The study also
for small claims on residential showed that 62 percent of the top
real estate have changed. 13 insurers in the state of
Submitting a small claim today, California refused applicants
especially for water damage, with only one-to-two claims in
could cost you multitudes more in the past three years.
the future.
If another insurer does approve
A California Insurance Department you, it will most definitely be
at a much higher premium rate original builder for
that will add up over the years reimbursement. This attitude has
to a much larger amount than the caused a lot of litigation —
small water damage claim you between insurers and residential
made. real estate owners, as well as
between insurers and parties
So, what has changed? assumed to be responsible for the
toxic mold. They often lose court
Toxic Mold cases for reimbursement, as well
as incurring attorney fees and
Litigators have jumped on the court costs. Is it any wonder
toxic mold lawsuit bandwagon. insurance companies have become
Toxic mold comes from water gun-shy of small water damage
damage repairs that were claims that could lead to costly
incorrectly made or only repairs and litigation later.
partially cleaned up. It can
literally make the real estate Administrative Costs
residents very ill. Some toxic
mold is created by homes that Another reason for the change in
were not quality built and attitude toward water damage
allowed water to seep in between claims is the change in real
the outer and inside walls. There estate insurers’ business
have been a few practices. Since the early 90s,
multimillion-dollar homes in real estate insurers have looked
California that had to be totally for more practical ways to
leveled due to toxic mold. increase profits. Through
studies, they found that small
Insurance companies generally are claims created the same large
expected to pick up the tab and administrative costs as the
then sue the repair contractor or larger claims, even though the
payouts were small. They now weed
out residential real estate After seven-to-ten years of
customers who make small claims. submitting no claims, most real
estate insurers will qualify you
Alternative Game Plan for Real for a claims-free discount,
Estate Homeowners saving you even more money.
Today, it is better not to make Is It Worth It?
small damage claims of any type.
Real estate homeowners should In deciding if you should submit
increase their deductibles to a claim (even a larger one),
$1,000 or $2,500. This reduces first determine if it is worth
their premium costs by as much as the possibility of losing your
30 percent. They are covered for policy and/or paying higher
large damages but not paying for rates. Add up all the repair
services (small claims) that they costs. Determine how much the
are not receiving. real estate insurer will pay,
based on your policy. Subtract
With the larger deductible, the your deductible. Is the remainder
premium savings can be placed only a couple hundred dollars or
into a savings account to pay for substantially more? Now,
small claims that would earlier determine if it is worth it.
have been submitted to the Remember, even moving to another
insurer. Whenever used, the money state will not escape the CLUE
should be replaced as soon as database.
possible.
About the Author:
John Harris is an expert researcher and writer on real estate topics such as economics, credit improvement tips, home selling advice and home buying preparations. For more information please visit San Diego Homes for Sale
Read more articles by: J Harris
Article Source: www.iSnare.com |
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