By Steve Rhode and Mike Kidwell
Gannett News Service

Question: While I was on vacation, the air conditioner in my condo froze up and leaked into my neighbor's condo. I'm not sure if my insurance covers the damage. Also, I've heard that asking about my coverage could cause my premium to go up. What should I do?

Answer: Check with your condominium association to see if they have any responsibility to fix your air conditioner and/or repair the damage to your neighbor's unit.

That could be one of the benefits of your monthly or quarterly condominium association fee. Also, check the warranty on your air conditioner to see if there is any coverage to repair its mechanical problems.

If you still think that you need to contact your insurance company, read your policy first to see what is covered. Most likely your policy covers your property and not your neighbor's, so your insurance company would not be involved.

Also, the policy will tell you the amount of your deductible. If the price of the repairs is close to your deductible, then the money will come out of your pocket either way, so don't bother with an inquiry or a claim.

Higher premiums

As for your premium going up when you ask your insurance agent about coverage, we asked the Insurance Information Institute (www.iii.org) for guidance.

They say that inquiring about insurance coverage could indicate to your insurer that you are a greater risk.

So, yes, your premium could go up if you call your agent or the company to ask about coverage.

Insurance companies think about risk like this: If your air conditioner broke once, it could break again.

In addition, they know from experience that people who file one claim are statistically more likely to file another than the general population.

They weigh that risk and price it accordingly.

If they see the risk as minimal, it may not affect your premium.

However, if they do see your situation as potentially expensive, it is likely your insurance rates will go up.

Only the big-brained actuarial scientists know the exact formulas.

New way of thinking

Some insurance companies are rethinking their policies about using inquiries as a basis to judge risk.

Travelers Property Casualty Corp. is one of them. Spokesman Keith Anderson says it is in the process of changing its companywide policy so inquiries that don't result in a claim are not placed on your record as a claim.

As for your neighbor's condo, call your insurance agent only after you've researched the steps we recommend.

Be sure to start the conversation by asking if your inquiry will be treated as a risk factor that will affect the price of future coverage.

That way you'll know how much your question will cost you in the future.

You pay for your insurance, and you have a right to ask about coverage.

If you navigate the rules in the right way, you can save yourself a premium increase.