Unsure about whether to file a food spoilage claim?
We're here to help!
Happy New Year, everyone! As you all know, we’ve had a surprisingly mild winter since the catastrophic ‘winter’ Storm Alfred that shook New England Halloween weekend.
While we have enjoyed a number of 50 and 60-degree days in January, we can never be too careful when it comes to protecting our assets against the worst of Winter.
One of the most common issues we’ve seen among clients this season has been dealing with food spoilage claims.
In the event that you lose power for days at a time it is likely that you will have to throw away a significant amount of your perishable food items. While it’s tempting to file a claim to compensate for the lost goods, submitting a smaller claim has its consequences when its renewal time. Most endorsements for refrigerated/freezer products have a $500 limit with a $100 deductible.
For example, many companies provide a loss free credit to clients who have not filed any claims. These credits are often in the $200+ range. Some companies categorize all claims associated with severe storms like Hurricane Irene, and Winter Storm Alfred as catastrophic, a.k.a. “CAT claims”. This means that a food spoilage claim due to a power outage during a catastrophic storm could be counted as a claim, but the loss free credit would remain intact.
Loss free credits typically take three to five years to accrue, so even if you receive a claim check for as little as $100, you would be jeopardizing losing $600 to $1,000 in loss free credits over the next three to five years. Living in a place like New England, the less claims you have on your home, the better because of the recent changes in the weather patterns.
The best time to file this type of claim is when it is combined with a larger claim. For example, if a large tree fell and did significant damage to your home, it would make sense to include reimbursement of your food loss with the damage repair for the home as a combined claim.
To find out how your insurance carrier handles these types of situations, get in touch with your agent and discuss what options would work the best for you!