Don't Get Burned On A Disaster Claim!

Don’t Get Burned On A Disaster Claim!

Nobody wants to think about their house burning down or burglars stealing some/most/all of their valuables. But that’s one of the reasons you have homeowners insurance – to give you peace of mind that if something horrible does happen, you will be compensated for your losses. Filing a claim, however, isn’t necessarily an easy process, particularly if you’re not prepared. Prepared? How do you “prepare” for a fire or a burglary? There are several ways;

Tip #1: Read Your Policy, Or At Least Make Sure You Understand What It Covers and What It Doesn’t.

When you buy coverage, you should know what you’re getting – and what you’re not getting. For example, the average homeowners insurance policy doesn’t offer a lot of coverage for computer equipment. As such, if a burglar walks off with thousands of dollars worth of computer equipment from your home, you probably will be disappointed with the coverage. It’s nice to know in advance potential gaps in coverage, if only because you won’t have the double disappointment of losing some of your possessions and then having all or part of your claim for those possessions denied, much to your surprise.

Tip #2: Know the Procedure in Advance.

Your policy usually has information on how to file a claim. Specifically, who to call

and how soon after the loss. You should know the claim process before you ever have to file a claim. If you have any questions about what is required of you and how to handle a loss or accident right after it happens, talk to your insurance agent or someone at the insurance company.

Tip #3: Document Your Possessions.

Your homeowners insurance, renters insurance and in-home business insurance policies offer general coverage for most of your possessions. (There are, of course, limitations on jewelry, art, computer equipment and collections). When you lose some or all of these possessions, you have to list on the claim what you lost. Generally speaking, the insurance company will give you the benefit of the doubt. However, if you claim the loss of numerous expensive items – televisions, stereo equipment, furniture, appliances, etc. – you could have a problem if you don’t have any evidence of your ownership of these items.  Evidence?  Receipts, for one. Also, you should have both a written and photographic (or videotaped) record of your possessions. Keep this record up-to-date, and keep copies (both written and photographic) of the records in another location, such as a safe deposit box.  Keep a file of receipts for any items that cost more than a few hundred dollars. And keep a copy of those receipts in the safe deposit box. This way, you minimize any potential hassles that could arise during the handling of the claim.

So, you might be asking, does my insurance company not trust me? The company will

trust you unless you give it a reason not to. For example, claiming lots of big-ticket items with-out any written or photographic record is a red flag. Keep good records and you won’t have a problem.

You can start understanding the process by having a meaningful conversation with you insurance agent and discuss what would be needed from you IF you had a claim.  Unfortunately, disaster do not make appointments or give advanced notice.  So the best time to prepare and to know what to do is now, before the disaster strikes.  As we all like to say when an impending storm is approaching, prepare for the worst but hope for the best. 

Jerry Nicklow is CFO at Huff Insurance, a local Trusted Choice Independent Insurance Agency. We have been Protecting Lifestyles™ of our clients since 1960.  If you have any questions regarding anything I have discussed in this blog, feel free to give my office a call at 410-647-1111.