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Steps for handling an insurance claim
Q: What do I do if property damage involves an insurance claim?
A: In the event of damage to your property, whether caused by a broken pipe, storm or other calamity, your first priority is to make repairs and get back in business. However, you should also take steps to protect any insurance claim you may have.
➊ Contact your insurance company immediately to notify it of the claim. The first contact will likely be a telephone call, but follow that up in writing. In some states, you are only entitled to certain legal rights if you notify the insurance company of the claim in writing.
➋ Read your insurance policy carefully to determine exactly what your policy does and does not cover. For example, if your policy covers water damage but not mold damage, then you will need to emphasize to the insurance adjuster that your carpet is wet, rather than saying it "smells moldy.”
➌ Document the damage with lots of photographs. Photograph every room and each item that is damaged. After the property is cleaned up and repaired, the insurance company may dispute the extent of the damage and you will need proof.
➍ Hire reputable contractors for the repairs. Avoid “restoration” companies, particularly if they tell you they will only charge you what the insurance company pays. That situation can result in the restoration company getting the bulk of your insurance check and leaving you with a lot of out-of-pocket expenses.
➎ Keep track of the amount of time your employees spend on clean-up or repairs. The insurance company may reimburse you for the cost of its time.
➏ Provide the insurance company with all of the documentation it requests. If you fail to cooperate with the insurance company, you could jeopardize your insurance claim.
➐ Document all contacts with the insurance company, including names, telephone numbers and conversations. It is common for a policyholder to receive conflicting information from the insurance company. The adjuster who says the company will pay for your loss may be overruled at the home office.
➑ If your claim is not paid quickly and fairly, contact an attorney experienced in property insurance claims to determine your rights. Many states require the insurance company to pay your attorney fees if you have to take legal action to obtain full payment on your insurance claim.
The author, Tina Nicholson, is an attorney with Merlin Law Group. Contact her at tnicholson@merlinlawgroup.com.
http://www.hotelworldnetwork.com/legal/steps-handling-insurance-claim
A: In the event of damage to your property, whether caused by a broken pipe, storm or other calamity, your first priority is to make repairs and get back in business. However, you should also take steps to protect any insurance claim you may have.
➊ Contact your insurance company immediately to notify it of the claim. The first contact will likely be a telephone call, but follow that up in writing. In some states, you are only entitled to certain legal rights if you notify the insurance company of the claim in writing.
➋ Read your insurance policy carefully to determine exactly what your policy does and does not cover. For example, if your policy covers water damage but not mold damage, then you will need to emphasize to the insurance adjuster that your carpet is wet, rather than saying it "smells moldy.”
➌ Document the damage with lots of photographs. Photograph every room and each item that is damaged. After the property is cleaned up and repaired, the insurance company may dispute the extent of the damage and you will need proof.
➍ Hire reputable contractors for the repairs. Avoid “restoration” companies, particularly if they tell you they will only charge you what the insurance company pays. That situation can result in the restoration company getting the bulk of your insurance check and leaving you with a lot of out-of-pocket expenses.
➎ Keep track of the amount of time your employees spend on clean-up or repairs. The insurance company may reimburse you for the cost of its time.
➏ Provide the insurance company with all of the documentation it requests. If you fail to cooperate with the insurance company, you could jeopardize your insurance claim.
➐ Document all contacts with the insurance company, including names, telephone numbers and conversations. It is common for a policyholder to receive conflicting information from the insurance company. The adjuster who says the company will pay for your loss may be overruled at the home office.
➑ If your claim is not paid quickly and fairly, contact an attorney experienced in property insurance claims to determine your rights. Many states require the insurance company to pay your attorney fees if you have to take legal action to obtain full payment on your insurance claim.
The author, Tina Nicholson, is an attorney with Merlin Law Group. Contact her at tnicholson@merlinlawgroup.com.
http://www.hotelworldnetwork.com/legal/steps-handling-insurance-claim
