Prepare to File an Insurance Claim in the Event of Disaster

Fire, flood, burglary - you never know when you'll need to file a claim on your home insurance policy. To make sure you're compensated, snap digital pictures of your household stuff and upload them to a photo-sharing site like Flickr.

You should also use the services of an insurance loss assessor (known as a Public Adjuster in the USA) when you are pursuing a claim with your insurance company. When you make an insurance claim, your insurance company immediately assigns an insurance loss adjuster to your case. The job of an insurance loss adjuster is to study the case and make sure the insurance company pay out as little as possible. An insurance loss assessor works for the claimant, ensuring they get the settlement they deserve rather than one that suits the insurance company. You and your loss assessor are normally the only persons involved in the case that have your best interests at heart. The insurance company and their loss adjusters are practiced at dealing with claims effectively and to their own company’s advantage. However, you are unlikely to know what to do for the best because you do not make insurance claims every day. It is easy to make mistakes when making an insurance claims if you don't know all the rules. Your insurance assessor does know all the rules and can use them to help maximise your entitlement.

Steps

Pre-Loss

  1. Read the small print on your home insurance policy carefully – ideally do this before the damage occurs so you know you're properly covered. Ensure that the descriptions of your property are accurately detailed on your insurance schedule and that all details are correct (sums insured, etc.).
    • Notify your insurers or broker in writing if any error is spotted, requesting them to correct the same as a matter of urgency. Keep this email or letter as proof.
  2. Keep proof of purchase of all items valued at over $200, wherever possible. This will provide evidence of the price and date of purchase. Keep a running record and inventory of all collections like CDs, DVDs etc., and proof of purchase from now on if you haven't already done so.
  3. Complete a written inventory of all your household goods on an annual basis. Forward this to your insurance company or broker for their records. This will place the ball in their court to ask you for proof of purchase for more expensive items such as expensive electronic equipment or jewellery beforehand.
    • It is always best to have proof of purchase of these items and updated valuations conducted on all your jewellery items every two years or so.
    • Being pedantic about this from the onset could save you a fortune of money and headaches should an insurance loss occur. You can even go as far as keeping proof of ownership of these items in a fireproof safe.
  4. In the absence of the above-mentioned evidence as proof of ownership, or as supporting evidence, take photos of your valuables with serial numbers. Flickr limits you to 20 MB of uploads per month, so shoot at low resolution or downsize the files using an app like http://gimp.org Gimp (gimp.org). Upload your pictures to (http://flickr.com Flickr), making sure to select "Private" - you don't want the whole world ogling your Fabergé eggs.
    • Write captions for each photo.
    • Include the date you purchased the item and its approximate value.

Post Loss

  1. Contact an independent insurance loss assessor. To ensure that you get expert representation with your insurance company, and maximize your entitlement under the terms of your policy, having such a person in your employ is essential.
  2. Call your insurance company or broker to advise them that you are about to make a claim. It may be faster and more cost-effective to do all this over the phone rather than filling in forms and faxing or posting them. Or better still - have your insurance loss assessor report your claim for you.
    • Insurance companies usually require a claimant to notify them or their broker of a loss incurred within 30 days of an incident giving rise to a possible claim. Do this to protect your interests as your insurers may be quick to use this technicality to avoid paying your claim.
  3. Make your claim as soon as you can after the incident. There may be a lot of paperwork to collate, including receipts, replacement estimates and repair costs. Your insurance company may insist that you use their own preferred suppliers for repairs and replacements - check the details on your home insurance policy or ask your insurers about this when reporting your claim before you get too "busy" doing their job.
  4. If your loss is the result of criminal action, report to the police immediately, and obtain a crime reference number. It is best to do this as soon as possible, within 24 hours of the incident.
  5. Avoid admitting liability. In the event of a loss which could possibly lead to a liability claim, never admit liability on the insurer's behalf at the incident. You could be accused of prejudicing insurers and they could, in turn, decline liability and hold you responsible for the loss.

Related Articles

References

  • Wired Magazine - Original source of this article. Shared with permission.
  • Morgan Clark - Advice and support on flood damage insurance claims.
  • Harris Balcombe - Great source for information on fire insurance claims and other business interruption claims.
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