10 Questions Clients Ask Following a Claim
1. I'VE REPORTED MY CLAIM. NOW WHAT SHOULD I DO?
Take all the necessary steps-securing property, to further prevent damage. If you don't and additional damage results, it may not be covered. Don't begin any permanent repairs or dispose of any damaged property before an adjuster sees the damage. In the case of perishable items ( such as food) that must be disposed of, first take photographs to substantiate your claim. Be sure to keep all receipts for emergency repairs and for items that might qualify as additional living expenses.
2. IS THERE ANYTHING I CAN DO TO SPEED THE CLAIMS PROCESS?
An adjuster will contact you as soon as possible. If you are not contacted within a couple of days give us a call and we will call your company. While you are waiting for the adjuster:
* Take pictures of the damaged property and gather any pictures showing the property before the loss.
* Get repair estimates ( preferably at least two ) for the adjuster to review. This is applicable in most minor and major automobile accidents as well.
* List all damaged property, including each items description, age, original cost, place of purchase, and estimated replacement cot. Include any receipts or cancelled checks for these items.
3. WHAT IF MY HOME IS SO DAMAGED THAT I CAN'T STAY IN IT.
Most homeowners and dwelling forms provide coverage for additional living expenses. Most policies will reimburse you for "reasonable expenses" over and beyond your normal living cost. Such as lodging, for example, since it is over and above your mortgage or rent payment.
You must keep all receipts in order for the expenses to be considered part of your loss. The expenses must be in line with normal living cost and must be a necessary and direct result of the loss.
Most policies limit recovery under "additional living expenses" to a percentage of the amount of coverage on the home itself.
4. WHAT COVERAGE IS THERE FOR TREES THAT ARE DOWN?
Standard dwelling and homeowners polices don't provide coverage for damage to trees by "weather peril" ( such as wind). But if a tree falls and damages other insured property, such as a house or a fence, the damage is covered. Separate windstorm coverage can be purchased as an endorsement.
5. POWER WAS OUT FOR FIVE DAYS AND THE FOOD IN MY REFRIGERATOR/FREEZER SPOILED. IS IT COVERED?
Most homeowners policies contain a " power failure" exclusion and don't cover food spoilage that results from power outages. Some companies provide coverage as an endorsement.
6. WHEN POWER FINALLY CAME BACK ON, A POWER SURGE DAMAGED SOME OF MY ELECTRICAL EQUIPMENT. IS THE DAMAGE COVERED?
Most homeowners policies coverage under " sudden and accidental damage from artificially generated electrical current." But coverage doesn't apply to loss of transistors, computer chips, and similar items. Therefore, damages from power surge wouldn't be covered for such property as televisions, VCRS, computers, or similar items.
7. THE ADJUSTER WAS HERE LAST WEEK AND I STILL HAVEN'T GOTTEN MY CHECK. HOW LONG IS THIS GOING TO TAKE?
Following the visit with you, the adjuster must complete detailed paperwork on the loss and submit it to the carrier for review. If the adjuster has a heavy claim load, which can occur, there's often a delay in completing paperwork. As your personal insurance agent we can check with the adjuster to find out exactly when the paperwork was submitted to the carrier and offer a status report to you, our insured.
8. I'VE JUST RECEIVED MY CLAIM CHECK AND ITS NOT ENOUGH.
If the check is for an amount lower than you expected, its usually because policy terms that require settlement on an actual cash basis, to be followed by a separate payment for replacement costs when repairs or replacement are completed.
9. WHAT'S THE DIFFERENCE BETWEEN ACTUAL CASH VALUE AND REPLACEMENT COST COVERAGE?
If the policy indicates that settlement will be on a replacement-cost basis, then payment will be made for the actual cost, at today's prices, to repair or replace, limited only by the total amount of coverage that was purchased.
If the adjustment basis is actual cash value, settlement will be made by determining the replacement cost at today's prices, less a reasonable amount for depreciation or age.
Some policies provide coverage for the home on a "guaranteed replacement cost " basis, in which case the carrier pays whatever it costs to repair or rebuild the home, regardless of limits.
10. I HAVE A FLOOD POLICY. WHAT DOES IT COVER?
This policy covers only one peril; damage from flooding. Not all flood polices cover building and contents. And all polices carry a separate deductible for building losses and for loss of contents. Reimbursement for additional living expenses isn't provided under a flood policy. Replacement coverage is provided under a flood policy for dwellings only if the home is your primary residence and if it is insured for at least 80 percent of its replacement cost. All other losses are adjusted on an actual cash value basis, including losses to contents and other items such as carpeting, antennas, awnings, appliances, and miscellaneous outdoor equipment.
Unfortunately, may people discover only after a flood that they aren't eligible for replacement coverage on their home because they were underinsured.
Please contact us walockjohnson@nd-insure if you have coverage questions or would like to review your policy with an agent.