You never think it will happen to you. Unfortunately, virtually every victim of storm damage, fire or theft felt the same way before disaster struck. Your homeowners' insurance will cover part or all of your financial loss if your policy is up to date and if you have adequate coverage. Filing a claim after you suffer a loss is a simple process, usually consisting of a phone call to your agent. However, before you make that call, take steps to protect yourself and get the most money from your insurer.
Function
Your homeowners' insurance covers financial loss due to storms, accidents, theft or vandalism, depending on your individual coverage. Your policy stipulates how much of the cost you must pay out of pocket before the insurance company will send you a check for the balance of your claim amount.
Process
After a loss, contact the police or emergency personnel and don't touch anything. Once the situation is under control, call your insurance agent and notify him about the incident without going into detail. The agency may send an adjuster to assess the damage and decide on a settlement price. Alternately, you may have to collect two or more estimates to repair the damage and submit them to the agency.
Precautions
Document everything before and after you make a claim. Making a video inventory, taking photographs and writing down descriptions of valuables and furnishings can pay off when filing a claim. Keep these videos and documents in a safe place away from your home. After the damage, make new videos to compare with the originals.
Disputes
Your own documentation is the best defense against a low settlement offer from the insurance agency. Get independent bids from local contractors and ask your agent for an official dispute form. Send copies of bids, before and after photos and professional appraisals of your valuables to the agency. Do not sign a release form until you're satisfied that their compensation offer is fair and that it meets the details of your policy.
Prevention/Solution
Insure your home and furnishings for their replacement value and check your coverage needs annually to make sure you're fully protected. Your policy lists your home's structure, outbuildings and includes the amount of coverage for your possessions, as well. Compare the policy limits to the actual value of your possessions and raise your coverage amount to fit the value.
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