Minnesota storms: Navigating insurance claims
A storm system that passed through Minnesota on Monday left some homeowners dealing with next steps and insurance claims. FOX 9’s Rob Olson spoke with some insurance experts on their take.
The Brief
- Several years of major storm damage in Minnesota have homeowners rates expected to rise by 15%.
- Insurers are also becoming more restrictive on what they pay out, feeling the pressure of rising claims and higher repair costs.
- Too many claims could lead to even higher rates or losing your insurance altogether
MINNETONKA, Minn. (FOX 9) - Josh Sitzmann had prepared for a busy Tuesday, expecting a wave of calls from homeowners in the wake of strong storms.
The longtime insurance agent says he’s relieved that the damage wasn’t as bad as it was shaping up to be, not only for his workload, but also to avoid adding more pressure to beleaguered insurance companies.
Insurers slammed by storms and costs
What we know:
Sitzmann, an agent for The Canopy Group, says in his 21 years in the industry, he’s never seen something like this.
"This is by far the tightest the market has been – not even close," he told FOX 9.
Several years of heavy storms combined with inflation has meant insurers are tightening their own belts, pushing rates higher while also being more restrictive on what they pay out.
"They’re kind of forcing the consumer to have more skin in the game on their policy. More out of pocket expense, essentially, if there is a claim," Sitzmann says.
Trusted assessment of damages
What you can do:
First, Sitzmann says, is to determine if you really had storm damage worth claiming.
Get a trusted contractor to inspect your property and give you an estimate.
If the damage is minor, Sitzmann says it’s probably not worth it to file a claim.
"Because then that goes as a claim on your record if you turn it in no matter what. And whether they pay a dollar or zero dollars or $10,000 – it counts," he says.
Policy and claim record
Dig deeper:
Insurers are always paying attention to how many claims a homeowner has filed, which can lead to higher rates or potentially even losing your coverage altogether.
Even just a few claims within the past five years can push your rates up, so Sitzmann advises it’s best to examine when it’s worth taking the hit on your record.
"What you want to be careful with there is, am I going to turn in a claim where I benefit $4,000, but now my rate goes up by $1,500 for the next five years, the math doesn’t make sense," he says.
The bottom line:
Call your agent to know what your policy covers and how many claims are on your record. Get their advice as to whether filing a claim is worth it or not.
Also, hope for a calm storm season – Sitzmann says that’s the best way to take pressure of insurers and keep rate hikes in check.
