|
|
Settling a Homeowners Insurance Claim
Your home was just damaged from a severe storm. What should you
do? Who should be notified? What can you expect from your insurance
company? These are just a few of the concerns expected from a home
owner facing a major loss. By having a general understanding of
how insurance companies handle claims prior to filing one, you’ll
likely be better prepared going into the process.
Loss prevention and claims preparation tips
-
Review your homeowners insurance policy and its coverages
in order to understand what is and, more importantly, what isn’t
covered. All homeowners insurance policies have exclusions
and limitations and it’s best to know what they are prior
to a loss. Often, coverage for an exclusion can be obtained
through an endorsement, which “buys back” policy coverage.
-
Evaluate the general condition of your property. Make
repairs that might prevent future losses. Check sidewalks for
deterioration and major cracks that could create a safety hazard.
Roofs should be checked annually for leaks. Steps that are left
in disrepair could potentially lead to a major lawsuit if someone
were to fall and be injured.
-
Prepare a home inventory of your personal property and belongings.
Include as much detail as possible such as the date, cost, where
the items were purchased (receipts are a good source for this
information), brand name, model and serial numbers. Such an
inventory can be a time-saver after a personal property loss
and will help to speed up the claims process.
Use a video camera to visually document each room, closet and
even contents in drawers. Provide a narration while walking
through each room, detailing high-ticket items such as computers
and home electronics. A video serves as documentation of your
possessions and the items contained in a room, especially if
damaged by fire, theft or severe storm. Be sure to keep a copy
of the tape off-premises in a secure place such as a safe deposit
box. Photographs can serve as an alternative or as an addition
to a videotape and should also be stored off-premises.
The claims process
Following a property loss, contact your insurance agent or company
representative with the details as soon as possible. In turn, the
company should provide information regarding the claims process.
The insurance company will ask you to complete claim forms regarding
the loss, which includes detailing your missing or damaged possessions.
Having prior documentation of your personal property (through a
video tape, an inventory list and/or photos) can greatly assist
with the claims filing.
The insurer will assign a claims adjuster to work with you. Depending
on the extent of the loss, the adjuster may conduct a personal interview
regarding the claim, request an inspection of the damages for a
loss assessment and possibly ask for a copy of an itemized list
of the damaged property. The adjuster may want to tape record discussions
regarding your claim.
Keep your insurer notified of any developments associated with
a claim. For instance, if someone is injured on your property and
you receive legal documents from the other party, contact your company
immediately. Keep in mind that homeowners insurance provides legal
defense coverage if sued as a result of such a claim.
In situations where property damage is extensive, try to protect
against further losses by making temporary repairs. For example,
if a tree falls and damages your roof, cover the hole with wood
or plastic. Keep receipts associated with such repairs. These may
be reimbursable under your homeowners insurance.
If a loss forces you to obtain a temporary residence, be sure to
inform the insurance company. Most homeowners insurance policies
also cover this under “additional living expenses.”
Don’t throw damaged property away unless instructed to do
so by the adjuster. To save time, you may start obtaining written
repair bids from licensed contractors. However, repairs should not
begin without prior approval from your insurer.
Other claims settling tips
-
Track all expenses associated with the loss. They may
be reimbursable under your homeowners insurance policy. Examples
could include mileage and meal expenses if called into court
for the claim or temporary repairs made to protect against additional
damage.
-
Keep copies of all your paperwork for future reference.
-
Don’t start permanent repairs until the insurance company
claims adjuster has assessed the damage and you’ve
been given the go-ahead.
-
You have the right to choose the contractor. Your insurer
may provide you with a list of pre-approved contractors to save
time and hassle, or you may be asked to obtain written estimates
from a few licensed contractors of your own choosing. Regardless
of the procedure, the policyholder has the final say in contractor
selection.
-
You have the right to negotiate the settlement. If you’re
having a difficult time with the adjuster, contact the company
directly and ask to speak with the consumer services department
or the claims division manager. If you still find the settlement
unacceptable, follow the appraisal procedure outlined in the
insurance policy. Most appraisal procedures work by you hiring
an independent appraiser at your expense. Once the appraiser
reaches an agreement, the claim is settled at that amount.
-
If you feel that you’ve exhausted all efforts with
the insurance company, call the Ohio Department of Insurance
Consumer Hotline at 1-800-686-1526. The department, which
regulates all insurance agents and companies within the state,
will provide you with information and advice on how to proceed.
-
If you still can’t reach an agreement, you always have
the option of seeking outside legal advice. Remember, you
are responsible for these legal fees. But by obtaining legal
counsel you sacrifice the ability to represent yourself directly
with the insurance company. All future correspondence regarding
the claim is then handled through your attorney.
Choosing a contractor
Before you arrange for repairs, guard yourself against dishonest
contractors:
-
Obtain more than one estimate. Don’t be bullied
into signing the first contract that is presented to you.
-
Obtain all information in writing, including cost, work
to be completed, repair time and payment schedules, contractor
guarantees—and make sure all details are provided.
-
Ask for references and check them.
-
Ask for the contractor’s drivers license and write
the number down along with a description of the vehicle and
license plate number. Many times contractors come into disaster
areas from out of state when damage is widespread.
-
Never sign an incomplete or blank contract.
-
Don’t pay for the repairs or sign a certificate of
completion until all work has been completed in accordance
with the contract specifications.
-
Don’t be tempted to conspire in a fraudulent insurance
claim. Insurance fraud is a felony. Disaster repairs often
heighten the opportunity for insurance fraud and abuse. Also,
be aware that insurance coverage may be void if a policyholder’s
intentional misrepresentation is discovered.
Portions excerpted from National Insurance Crime
Bureau, Don’t be Victimized Twice: Avoid Disaster Fraud
 |
Lightning, which kills three out of every
10 victims it strikes, also causes serious, ongoing medical
problems in many who survive. Lightning occurs one out of every
five days in the spring and summer.
(The Kansas City Star, 4/26/01) |
|
