How insurance works, and what it will cover
Take these steps to get the money you need to rebuild and replace certain items.
Step 1: Call your insurance agent or company representative.
After a loss you must report the damage to your insurance company immediately to start the claim process. You should ask these questions:
- Does my policy cover the property damage to my home?
- How long will it take to process my claim?
- Do I need to get an estimate on the damage?
- What is my deductible? (The deductible is the amount you pay before your insurance company begins to pay.)
Get contact information for your insurance company.
Step 2: Find out what your plan includes
There are several different types of policies. Here is a list of some common ones and what they may cover. Ask what claims are excluded.
- Homeowners: personal property, dwellings and living expenses as a result of the damage
- Renters: personal property, loss of use of property and possibly medical and liability payments
- Vehicle: physical damage to car, which could be the cost of repairs or fair market value of the vehicle
- Fire: dwellings and other buildings on the property, personal property and possibly debris removal, landscaping and additional living expenses
Step 3: Set up an inspection with your claims adjuster.
Your insurance company will need someone to assess the damage to your property. This person is the claims adjuster. This may be done in one or more visits to your home.
You may need to provide some of these materials to prove your loss:
- Pictures or videotape (before and after the damage)
- An inventory of all damaged property
- Records and receipts for all living expenses as a result of the damage
- Repair estimates obtained from third parties or receipts for any repairs already completed.
When dealing with your insurance company, be sure to document everything! Keep copies of all communication with your insurance company. Also write down the names of the people you speak with, the date, and what you talked about.
Step 4: Receive your settlement and payment.
Once the damage has been assessed your insurance company will give you money to make repairs or replace certain items. The first check you receive is often an advance, not a final payment. Usually if additional damage is discovered later, you can reopen your claim and ask for more money. You should also get a separate check to cover your additional living expenses.
Be sure you are clear about what your policy includes. Ask questions. In some cases, your insurance company will pay only a percentage of the damage. For example, if an eight-year old washing machine is damaged, the insurance may not pay the full cost of a new one, since a the old machine is not worth nearly as much as the new one.
If you do not agree with the settlement offer you can talk to the claims manager or send a letter and copies of documents to the claims executive at the insurance company’s headquarters. You can also seek legal action if necessary.
