Why second-think filing a loss?

On a daily basis, insurance consumers experience different losses. Depending on how serious a loss is, property owners must consider the next step they should take. The most practical move would be to get an insurance company involved, especially if a loss amount is high. However, it may be a better idea to carefully consider this potential step of filing a claim with an insurance company if a loss involves a more modest amount.

Insurance carriers need to carefully think about the consequences of filing insignificant claims. Insurers focus their attention on the history of losses. Loss history has always been an important factor. They closely investigate how different past losses affect a given business that they insure or are considering insuring. Depending upon loss circumstances, coverage may be denied or the fact that the loss even occurred can cause insurers to take a closer look at you. To put it briefly, reporting a minor loss could make you a two-time loser, so it is important to make sure you make the right decision.

In order for insurance companies to offer or continue offering you coverage, they need as much information as possible regarding to the loss. They prefer to use past losses as a way to predict the likelihood of any future losses and now search for information on every conceivable loss. This increased sensitivity to losses may cause insurance companies to increase premiums or possibly decide to terminate coverage when minor or unpaid claims were not treated as problems in the past.

Since insurers have changed their attitude towards losses and underwriting, more and more organizations are becoming aggressive and creative in managing losses. It is important to be aware of how to properly handle losses and become updated on how insurers are currently responding to loss activity of their customers’ or new applicants.

If you have any questions about your existing policy, are inquiring information about a possible future policy or need further information, please call us at (631) 738-7300 or get a quick quote at www.vrpinsurance.com

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January 23rd, 2013 by VRP Insurance Agency