GREENSBORO, N.C. — Something has happened, either to your car or your home, and you have the decision to make, do you file the insurance claim? Or do you pay for the repairs out-of-pocket?
"If you had a catastrophe and a tree fell on your house and you're replacing your roof, you lost power and oh, by the way, everything in the fridge is spoiled, yes I would add that to the claim. But if your power went out and you lost $250 in food, that sucks and that's a lot of money, but I wouldn't report a claim over that," said Christopher Cook of Alliance Insurance Services.
Cook's rule of thumb is that if the cost to repair what is wrong is double the deductible plus a dollar, then you make the insurance claim.
Here's a key piece of advice, if something happens in your home, and there's damage like standing water, you need to take care of that before you worry about the price.
"After talking with your insurer, do the stopgap work. That is repairs that must be done immediately to prevent further damage. For example, you might need a plumber to close off water lines," said Tobie Stanger, Consumer Reports.
You need to know what kind of coverage you have.
A standard homeowners insurance policy covers damage to the structure and personal property, up to certain limits and minus your deductible.
Replacement cost coverage pays to rebuild your home and replace stolen or damaged items, at today's prices.
Actual cash value coverage pays to rebuild your home and replace stolen or damaged items, but factors in depreciation.