Insurance tips

Insurance tips for homeowners

Dealing with the aftermath of a residential burglary, fire or destructive storm can present stressful and difficult challenges for homeowners. Ideally, damages from fires and other disasters can be prevented or lessened through planning and other precautions. The following suggestions and tips are intended to help homeowners prevent losses, and minimize damages when losses occur. You’ll also find information that will be helpful should you have the need to file a claim with your insurance company following a loss.

What steps can I take to prevent a loss from occurring, and minimize my need to file a claim?
You can help prevent losses from occurring, and minimize damages if you:

• Install and maintain smoke alarms
• Place small fire extinguishers in strategic locations in your home
• If feasible, install a sprinkler system
• If feasible, install a security system
• Keep your home and land maintained and free of debris

(Note: Many companies offer discounted rates when security or sprinkler systems are installed in your home.)

What can I do right now that will help me if sometime in the future I need to file a claim?
If you should need to file a claim at some point in the future, the following suggestions will assist you:

• Create (and regularly update) a written inventory of the contents of your home
• Videotape or photograph the contents of your home
• Engrave your larger possessions (television, stereos, etc.) with identifying marks
• Photograph or videotape the exterior of your home from several angles and viewpoints
• Have special valuables (jewelry, antiques, stamps, coins and other collectibles) appraised
• Keep your insurance policy, home inventory, appraisals, photos and videotape records in a secondary location (your office or with a trusted friend)

Update your records periodically – set a specific date each year to review the inventory list and other records

What should I do if I have a loss?
If you experience a loss, you should:

• Notify your agent or insurance company
• Ask your agent or company what documents, forms, and other data you will need to process your claim
• Review your policy coverage and ask your agent or company for an explanation of the coverage available for the loss
• Protect your property from further damage. Save the receipts for the temporary repairs, and submit them to the insurance company for reimbursement. Permanent repairs should not be made until after the company has had a chance to inspect the damaged property.
• If you are unable to live in your home, keep your insurance company informed of your whereabouts so they can reach you
• Itemize your contents loss (this is where your inventory list is extremely helpful) including copies of the receipts for the larger items

If the loss is due to a criminal act, such as burglary or theft, notify the police

You must prove your loss, and receipts are the best way to do it. If you don’t have receipts, then photos of the damaged or missing items taken prior to the loss may help prove the loss. Brochures and other materials may be helpful as well. If your company requires a “proof of loss” form to be submitted, completing it and submitting it in a timely manner will help prevent delays in the claim process.

What if I don’t agree on the amount the company is allowing for my loss?
If you and your insurer cannot agree, you can initiate the appraisal clause of the insurance contract. This requires you and your insurance company to each select a competent and disinterested appraiser. The appraisers in turn select an umpire. Each appraiser then evaluates the loss and determines the value of each item. Any disagreement between the two appraisers regarding the value of any item(s) is settled by the umpire. The cost of this process is shared by the policyholder and the insurance company.

How long does the company have to resolve and pay my claim?
Once the insurer has received notification of your claim, the company must acknowledge receipt within 10 business days, unless payment is made within that period.

Additionally, insurers must complete an investigation of the claim within 30 days of being notified, unless the investigation cannot reasonably be completed within that timeframe.

If the insurer needs additional time to determine whether your claim should be accepted or denied, the company must notify you and provide reasons within 15 business days of receiving the proof of loss. If the investigation is not completed within 45 days after proof of loss is submitted, the insurer must tell you why, in writing, and follow-up every 30 days thereafter until the investigation is completed.