| Dealing with a disaster and your insurance company |
| By Jennie
L. Phipps • Bankrate.com |
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The disaster has passed, leaving behind a mess
so complete it's hard to know where to begin putting things right.
Resist the temptation to run away and worry about
it later. Your mission -- and you better accept it -- is to call
your insurers and get the claim ball rolling. The sooner you report
damage, the sooner you get to cash the check.
| Here are 12 tips from insurance experts that will assist you in cleaning up the financial mess and getting on with life: |
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| 12 tips from insurance experts |
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1. Call right away.
Calling the insurance company will put the claim on record
and also may get you some emergency help, such as a crew to help
pump out a swamped basement following a hurricane or flood. You
can contact your agent by phone or e-mail, but it is always a good
idea to also mail a letter notifying the company and outlining the
loss. Getting proof of delivery will let you off the hook if, for
some reason, your report goes unrecorded and there is some question
concerning timing of the claim.
2. Hunt down your insurance
policies.
Ideally, you would have collected these policies in a safe
place beforehand. Now is time to get them out. This includes not
just your homeowners, wind and flood policies, but also auto and
even health insurance. You need them all because some policies may
include overlapping coverage. Read the fine print of each carefully,
especially the part in your homeowners policy titled "Duties
After a Loss."
Don't take the naive attitude that your insurance
company will take care of everything.
"Even if you have a good, proactive company,
you have obligations," says James Walsh, author of "Get
Your Claim Paid."
And although it won't help with your current problems,
now that you have all your policies in hand, when things settle
down consider what revisions you might want -- or need -- to make
in case there ever is a next time.
For example, can you get a more reasonable
deductible? In at least 18 coastal states stretching
from Maine to Texas, plus the District of Columbia,
the hurricane-related wind damage deductible (especially
on newer policies) probably isn't a flat amount.
It usually equals 2 percent to 5 percent, but can
be as high as 15 percent, of your home's insured
value, meaning that if you have a $200,000 policy,
you'll have to cover as much as $10,000 in hurricane-related
damage before your homeowners policy kicks in. Some
companies will allow you to pay a higher premium
to lower the percent or, in some cases, even get
a flat dollar deductible. Some insurers even allow
changes with as little as 24 hours' notice. Call
your agent and ask. The worst the company can say
is no.
Another coverage worth adding if you don't already
have it is sewer-backup insurance. While homeowners policies don't
cover flooding (you have to buy federal flood insurance for that),
sewer-backup insurance will cover damage caused by water that backs
up, overloading the sewer system, your septic tank or your sump
pump, and then flows into the house.
3. Check your property thoroughly
as soon as possible.
Inspect everything: basements, attics, backyard sheds. In particular,
look carefully at the roof. Even if it looks solid, search for any
evidence of leakage. Check the foundation for cracks or erosion,
even if you don't have floodwater inside your house. Make sure that
major systems like your furnace and air conditioner are working.
Turn on all your appliances. Make a written list of any damage you
find. It also is a good idea to corroborate any damages by taking
photographs. If you have predamage pictures of your property and
belongings, all the better. The before and after photographs can
substantiate what property you lost or how strong a hit your home
took.
4. Make temporary repairs.
This will prevent further damage to your property. For instance,
if a picture window is smashed, do what you can to cover the opening.
"If an adjuster looks at your house and sees that you made
a good effort to mitigate further damage, he or she is more likely
to approve the claims you make," Walsh says. But stop short
of removing evidence of the damage. If the insurance adjuster can't
see what happened, he's unlikely to take your word that it did.
And as much as you'd like any help, don't accept the
services of companies that drive through damaged neighborhoods immediately
after a disaster and offer to help. While these services may seem
tempting, Carolyn Gorman, vice president of the Insurance Information
Institute, says catastrophes bring scam artists out of the woodwork.
Plus, the services that many of these opportunistic companies offer,
such as tree removal after tornadoes or hurricanes, are usually
performed free of charge by Federal Emergency Management Agency
teams.
5. Be wary.
Give your agent the phone numbers and addresses where you can
be reached day or night. When an adjuster contacts you, ask for
identification. Do not permit an adjuster to inspect your property
without proper identification. Thieves have been known to use this
ruse to get inside your home.
6. Be prepared.
When the adjuster shows up, have available evidence of your
loss, including itemized lists, appraisals, videos, still photos,
receipts -- whatever you can muster to prove what you owned and
what it's worth.
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