There are a lot of situations where more than more insurance policy can apply. For example, if you are in a condo or townhouse, your neighbor may have a water leak that damages your property. In a business situation, the neighboring business may have damaged your property. Or, if you have a car accident where your car is parked, you may be able to make a claim against the other person’s insurance.
So, who do you make a claim against? There is no easy answer. There are some things to consider:
- How much is your deductible?
- Does the other person even have insurance?
- What is your relationship with the other person?
- How quickly do you want the claim paid?
The first one is easy. If you have a $1,000 deductible or higher (especially on a business policy) and the damage is close to or less than the deductible, file against the other person’s insurance policy. Of course, if the other person does not have insurance, this is irrelevant. If you are friends with the other person, or if they are someone you have a working relationship with, you may want to file with your insurance company and let them sort it out later. Finally, if the insurance company is notoriously slow, you probably want to use the other insurance company.
What about your rates? Generally, if your insurance collects back from another person, your rates will not go up. But, check with your agent, as insurance companies are coming up with new ways to increase rates all the time!