Insurance - To file a claim or NOT to file a claim?

[Jonathan Taylor Smith]

One of my rental properties suffered water damage and I'm wondering if I should file an insurance claim or just eat it...? I've never filed an insurance claim on a rental property, so I do not know what impact filing a claim will have on my insurance rates for this property and other rentals that I have insured with the same and other companies. The event was triggered when a polybutylene pipe feeding the upstairs bathroom burst over the living room ceiling while my tenant was at work. So for hours water rained down, damaging the living room ceiling, carpet / padding - and drained down to the basement, damaging the drop ceiling tiles, insulation and more carpet / padding. It does not appear the sub-floor or walls were damaged and no apparent mold. It will all be fixed for between $4,500 to $6,000 and my deductible is $500. I've also got a plumbing bill for fixing the pipe that is not covered by insurance. To file a claim or NOT to file a claim?

[Tony Wilcox]

You can never really know how it will impact your rates. All I can say is that it will. Mainly it will impact your insurance score which is a major factor in determining the rate. You wouldn't see anything until renewal, or if you went to buy another property. Now it might not change hardly at all, or it could raise your rates by $20/month, or more. There is just no way to truly know until renewal.