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Filing A Home Insurance Claim
Every year insurance companies pay
more than $75 billion in claims resulting from losses suffered
during fires, hurricanes, robberies, dog bites, falls and other
incidents. The trauma of a burglary or severe damage
to your home is stressful enough without having to worry about
your insurance claim. This following information, prepared by the
Independent Insurance Agents of America (IIAA), is designed to
help you understand the claims process. Your First Southeast
Insurance agent will be there to ensure your claim is handled
promptly and fairly.
Where Do
I Start?
There are two basic types of claims. The first
involves loss or damage to property such as your home or your
possessions. The second type is a liability claim which arises
when someone else suffers an injury or damage to their property
because of something you did or did not do. For example, if
someone falls while visiting at your home, you could be liable
for any injuries that may have occurred. Liability claims may
result in a lawsuit against you.
On The
Home Front
If you own your home, chances are you have a
homeowners insurance policy. Homeowners insurance covers damage
to your property -- structures and your possessions -- within
specified limits. This coverage extends to possessions that you
carry for personal use when you travel. You usually have coverage
for damage to both structure and personal property caused by:
- Fire or lightning
- Windstorm or hail
- Explosions
- Riot or civil commotion
- Aircraft
- Vehicles
- Smoke
- Theft or vandalism
- Weight of ice, snow or sleet
- Freezing of a plumbing, heating air
conditioning or other such household system.
If you should experience damage from an above
listed caused, you can make temporary repairs (e.g., to the roof)
to prevent further damage to your property. Remember to keep all
receipts for the insurance company, and do not sign any deals
with contractors or lawyers until you have spoken with your First
Southeast Insurance agent.
Suitable
Coverage
Unfortunately, there are other risks involved
in everyday living besides loss or damage to your property. That
old tree you kept meaning to remove may come crashing down during
the next storm right on your neighbor garage. Or that pesky
skateboarding teenager down the street may pick your sidewalk to
have a spill and break a bone. If you find yourself involved in a
situation where you may be held liable, it is important to notify
your First Southeast Insurance agent. You may talk to the
"nice" parents of the skateboarder or with your
neighbors, but leave the insurance discussion and negotiating up
to the professional. For several reasons, the first conversation
you have about the incident should be with your First Southeast
Insurance agent. Chances are your policy includes a stipulation
that the insurance company be notified promptly. Plus, in
chatting about the situation you can inadvertently waive some of
your rights in the case. More importantly, by inviting the
insurance company in early in the process, the company can
sometimes offer an early settlement that avoids a lawsuit. After
all, the insurance company has a team of experts -- claims
adjusters, appraisers, lawyers, and medical experts -- who have
probably been down this road before and know exactly how to get
mutual satisfaction for both sides without straining neighborly
relations.
Is that
It?
No. There are additional coverages such as
flood and earthquake damage for your home. In fact, just about
any contingency can be covered by adding clauses and conditions
known as endorsements or riders to a standard policy.
When The
Time Comes
If you do suffer property damage or injury or
incur liability, it is time to file a claim. You will be asked to
fill out a claim form -- the formal document on which you request
benefits to be paid according to the terms of the policy. Be
complete and supply as much detail as you can and, of course, be
truthful. To support your claim, it may be necessary to supply
some documentation. Pictures of your tree atop the neighbor
garage, details on the sofa, chairs and CD collection destroyed
in the fire, and so forth. The better you document your property
beforehand with pictures, receipts and other evidence, the more
likely your claim will be processed smoothly.
Figuring
Out The Costs
How much financial settlement the insurance
company offers you of course varies with the situation. However,
for property damage, it helps to know that there are two basic
ways to value your property:
- Actual Cash Value - The replacement cost of
the item minus depreciation. For example, a new television set
may cost $500. If your 7-year-old TV set gets damaged in a fire,
it might have depreciated 50%. Therefore, the televisions
remaining value would be $250.
- Replacement Coverage - The cost of replacing
an item without deducting for depreciation. So the current cost
for a TV set with features similar to the 7-year-old one damaged
by fire would determine the amount of compensation. If the
similar new television costs $500, that would be the amount of
your coverage.
You may want to check your policy to see which
kind of coverage you currently have. For example, if you would
prefer replacement coverage and do not have it, this coverage can
be added to your policy for an increase in your premium of about
10% to 15%.
What is
A Deductible?
When you file a claim for property or loss, the
payment made by the insurance company is subject to a deductible.
Basically, when you purchase your insurance policy, you agree to
pay the first specified amount of any damage as your share of the
cost of repair or replacement. The insurance company adjusts its
rates accordingly, charging less for those who agree to pay a
larger first share -- or deductible. For example, if your home
should sustain damages costing $2,000 to repair and you have a
deductible of $250, you would pay $250 and the insurance company
would pay $1,750.
What is
A Claims Adjuster?
Once you have reported your claim to your
agent, he or she will contact your insurer claims adjuster --
usually within the hour. The adjuster will begin the settlement
process, the length of which will depend on the cooperation of
the other party, if any. While some claims are relatively easy
and straightforward, others are more complicated. Your adjuster
is charged with investigating the claim and then making a
recommendation to the insurance company. The recommendation can
be to accept the claim and pay the full amount requested, accept
part of the claim and make a partial payment or refuse the claim
and make no payment. The insurance company will then make a final
decision regarding your claim and notify you.
A Final
Note
The amount of compensation offered can vary
according to the adjuster analysis of your claim. Keep in mind,
if you feel it is too low, you do not have to accept the first
amount offered. While you may have to do some research to prove a
higher payment is valid, it may be worth it. Your First Southeast
Insurance agent should be able to assist you in reaching a fair
settlement.
HOME
INVENTORY
Taking Inventory of Your Home
No one plans to lose their valuables and other
belongings in a burglary, a fire or a natural disaster. If one of
these unfortunate events destroyed your home, would you be able
to report exactly what you lost to the police, to the Internal
Revenue Service or to your First Southeast Insurance agent? It is
easier to do an inventory of your home now rather than sitting
down afterward and attempting to remember a lifetime worth of
purchases.
Start
Today with our
Printable Inventory
Form
Write down any valuable items with their serial
numbers (usually found on the bottom or back of major appliances)
along with the method of acquisition (purchased, inherited or
received as a gift), date purchased and price or approximate
value. Attach receipts, if possible. Remember to include
furniture, appliances, carpeting, jewelry, artwork, toys and the
contents of your closets, cabinets and drawers. Contact your
First Southeast Insurance agent with questions or concerns.
Play It
Safe With A Videotape
Videotaping each room of your house can make
taking inventories easier. Photographs and a tape recorder can
substitute for a video camera. A complete video inventory should
contain verbal descriptions of major assets as well as their
value. Remember your garage, attic, basement and the exterior of
the house, plus your landscaping and fencing. If possible, make
it a family project by having everyone take turns describing the
objects in your home. Store the video or photographs along with
this inventory in a safe-deposit box and send a copy to a friend
or relative.
Do Not
Forget Important Documents
Extremely important documents should be
photocopied. Keep one copy in your home and the original, where
possible, in a safe-deposit box. Important items include, but are
not limited to, the following:
- House - Escrow, title, deed, insurance policy.
- Personal - Birth certificates, medical
history, passports, insurance certificates, credit card numbers,
will.
- Automobile - Certificates of ownership,
finance contracts, registrations, insurance policy, driver
licenses.
- Finance - Account numbers for checking and
savings accounts, CDs, stocks, bonds, other significant
investments.
- Tax - Copies of the first two pages of your
state and federal returns for the past five years. Complete
returns with appropriate receipts and canceled checks should be
kept in a separate file box.
A Final
Note
Most policies limit the amount of reimbursement
for theft of valuable items, such as jewelry, furs, silverware
and guns. If you have some particularly valuable items in these
categories, you may need to purchase additional coverage called a
"floater." These types of policies cover each item
individually and are usually quite inexpensive. This information
will only be beneficial if you make use of it now. By
inventorying your personal possessions ahead of time, you will
save yourself from frustration should disaster strike. Your First
Southeast agent can help you determine whether your property is
adequately protected. |
