Insurance: What to do When Life Hands You a Potential Claim

Many people had an unpleasant surprise the weekend- a tree that had been next to their house was now on top of it, or shingles that had moments before been on their roof were now in their yard.  Once the bad weather has passed, many people found themselves with a potential insurance claim but unsure what to do.  Here are a few tips for what to do if you think you may have a homeowners claim.

If you think you may have major damage to your home  

• Stay safe!  Don’t enter any building you think may have been structurally damaged, and watch out for downed power lines.  Be alert for the smell of gas.  Keep electricity off in any house with standing water.
• Call your insurance agent or company- let them know you have a claim, and find out how if they have any specific instructions.  You may need to call a restoration company to board up windows, place tarps over damaged roofs, or otherwise prevent further damage.
• Document the damage- in the event of a weather related claim, it may take several days for an adjuster to come to your home.   You may need to start the clean up process to prevent further damage to your home, so make sure you document the loss.  A camcorder works great if available, but even pictures with your cell phone work.  Don’t dispose of damaged items unless absolutely necessary until after the adjustor comes to evaluate your claim.

If you think you may have minor damage to your home

• Call an appropriate contractor for an evaluation and estimate- it can be hard for the average homeowner to determine if there is any damage and if so how much.  A licensed and insured contractor has the expertise to help you know if what you are seeing is a $20 problem or a $20,000 problem.
• Be wary of anyone who comes to your door and offers to check for damage to your home- It’s not possible to evaluate damage to your house from the road.  And it the damage is that apparent, you should be able to see it too.  Don’t let anyone onto your roof or into your house unless you initiate the contact.
• Call your agent- your insurance agent is a resource to help you navigate potential claims.  They can explain your policy to you, including your coverage and deductibles.  They may also be able to help you find professionals in your area to help assist you with your potential claim.

The most important part of a claim- preparing for it

• Document your possessions- your best “insurance” in case of a claim is to have a record of what you own.  Take a camcorder, and “walk and talk” through your home.  Open closets and drawers; talk through items, pointing out any possessions that are particularly valuable or unique.  Bedroom closets and dresser drawers in addition to kitchen cabinets and drawers are spaces that are often missed, but in the event of a major loss you will need to replace everything from teaspoons and measuring cups to socks and shoes.  The process is much easier with a detailed inventory of your possessions.
• Make sure items of higher value are insured separately- If you have items worth more than $1500, depending on the item it may need to be insured separately.  Jewelry, higher value musical instruments, and art or antiques may not be covered entirely within your general homeowners policy.  If your policy has a limit of $2500 for jewelry and your wedding ring costs $4,000 to replace, you are responsible for the difference.
• Talk to your agent- If you have not talked to your agent recently, call and ask for a review of your insurance needs.  As families change, their insurance needs change too.  Coverage that was appropriate several years ago may need to be adjusted now to accommodate changes to your home or family.  While sometimes people worry that talking to their agent will increase their insurance premium, your agent can help walk you through changes that can make sure you have the coverage you need at a price you can afford.