Insurance Department: Filing Repeated Storm Damage Claims Can Affect Premium Rates

HARRISBURG, Pa., June 2, 2011 /PRNewswire-USNewswire/ -- After a series of severe storms have left many Pennsylvanians coping with property damage, Insurance Commissioner Michael F. Consedine is reminding consumers to take care to avoid being penalized for filing multiple insurance claims in a short period of time.

"Many consumers are not aware that filing repeated claims could increase a policy's premium," Consedine said. "If it's financially feasible, you may want to consider covering the cost of cleanup and repairs out of your own pocket – and particularly, if this is your second or third claim in recent years."

Consedine's own home recently suffered minor storm-related damage. Because the repairs will likely cost less than his deductible, Consedine says he will pay for the repairs himself so he doesn't risk an insurance premium increase.

State law generally prohibits an insurance company from terminating a homeowners policy for claims or loss history. However, some insurance companies can place a surcharge on your premium if multiple claims are filed within a three-to-five-year period.

Consumers can take the following steps to simplify the insurance claims process and damage cleanup:

• Give your agent or insurance company representative a detailed description of the damage to your property. Once the company is notified, an adjuster will contact you as soon as possible to arrange an inspection of the site.
• Video or photo documentation will help with the claims process and aid the adjuster in the investigation.
• Prepare a detailed inventory of all damaged or destroyed personal property. Make two copies—one for yourself and one for the adjuster.
• Keep canceled checks, invoices, receipts or other papers that will help the adjuster determine the value of the destroyed property. 
• Make whatever temporary repairs you can. Cover broken windows and damaged roofs and walls to prevent further damage. Save the receipts for any supplies and materials you buy since your insurance company may reimburse you for reasonable expenses in making temporary repairs.
• If your home is severely damaged and you need to find other accommodations during repairs, keep a record of all expenses, such as hotel and restaurant receipts.
• If you do not have a separate flood insurance policy, damage to your home or its contents due to rising water is not likely to be covered.

If your claim is denied, review the terms of your policy. You can also file an appeal to your insurance company's claims manager or contact the Insurance Department.

For more information, visit www.insurance.pa.gov or call the department's toll-free, automated consumer hotline at 1-877-881-6388, or either of the department's Bureau of Consumer Services' regional offices: Harrisburg at 717-787-2317; or Philadelphia at 215-560-2630.

Media contacts: Rosanne Placey or Melissa Fox, 717-787-3289

SOURCE Pennsylvania Department of Insurance

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