Property Damage to Non-Attached Garage

[Kevin Sage]

Dear BP Members,

A couple weeks ago, the non-attached garage my rental property was damaged. The garage appears to have been run into by a vehicle that knocked the wood framing off of the slab causing it to lean and making it unsafe to use. I had a known contractor inspect the garage and it was their suggestion to demo the garage for $3,500-4,000. I have a copy of the police report citing the damage and the suspect being unknown. I have talked to my insurance company and am unsure if I should make a claim for the demo or pay out of pocket. If anyone has an advice on the best way to proceed, it would be greatly appreciated.

Thank you in advance,

Kevin

[Patricia Steiner]

That's always a question that I struggle with as well.  I've come to the conclusion that paying premiums and never making a claim is my subsidizing of the already hugely profitable insurance industry. Yet, I realize that claims affect premiums. So having gotten us no where, I recommend filing a claim. This is a total loss, caused by an unknown third party who I can only hope has more damage to his/her vehicle than your garage.  

And, a word from the insurance industry on claims and premiums: 

"The answer is that filing a claim will NOT cause your premium to increase. Contrary to what many people believe, they associate having one claim filed with their rates going up. The fact is that claims don't dictate the premium with regards to property insurance." (End)

Make the claim - and then use your money for what you do best - investing.