Stuff happenes, you make a claim and then the premium doubles?
Yep. It make people think twice about claiming.
Sure, you could claim for that carpet, but ... your premium will be $300 higher for the next few years so do the math first.
Insurance companies are parasites when it comes to small claims. If you own several properties then you're better off insuring against complete disaster (which is usually cheap) and then paying for the small stuff yourself.
But the contents insurance effectively "comes for free" with the liability cover.
Ok, let's say you have 10 properties like my lab. $300/year for insurance that includes contents and liability and other stuff I posted before.
New carpet for that size place is $3k, let's say I claim it and my insurance magically increases to $400 for
all my properties (that's pretty extreme, but we'll run with that).
So I used to pay $3000/year for insurance on 10 properties, and now I pay $4000, $1000 extra. It would take 3 years of insurance premium increases before I am worse off, at which point the premium is likely to have come back down because I haven't made another claim.
Maybe you could make an argument this worthwhile, but remember the
huge thing is not only don't you have contents insurance, you don't have liability cover or any other cover.
Would you really run 10 properties without any liability cover? If so you are insane. It's not just about contents.
I asked my insurance guy last year who much the insurance costs without the contents cover and he said it's hardly any difference, like 10's dollars.