Filing A Home Insurance Claim

There are two basic types of claims. The first involves loss or damage to property such as your home or your possessions. The second type is a liability claim which arises when someone else suffers an injury or damage to their property because of something you did or did not do. For example, if someone falls while visiting at your home, you could be liable for any injuries that may have occurred. Liability claims may result in a lawsuit against you.

If you own your home, chances are you have a homeowners insurance policy. Homeowners insurance covers damage to your property -- structures and your possessions -- within specified limits. This coverage extends to possessions that you carry for personal use when you travel. You usually have coverage for damage to both structure and personal property caused by:

If you should experience damage from an above listed caused, you can make temporary repairs (e.g., to the roof) to prevent further damage to your property. Remember to keep all receipts for the insurance company, and do not sign any deals with contractors or lawyers until you have spoken with your Kinghorn Insurance agent.

Suitable Coverage

Unfortunately, there are other risks involved in everyday living besides loss or damage to your property. That old tree you kept meaning to remove may come crashing down during the next storm right on your neighbor's garage. Or that pesky skateboarding teenager down the street may pick your sidewalk to have a spill and break a bone. If you find yourself involved in a situation where you may be held liable, it is important to notify your Kinghorn Insurance agent. You may talk to the "nice" parents of the skateboarder or with your neighbors, but leave the insurance discussion and negotiating up to the professional. For several reasons, the first conversation you have about the incident should be with your Kinghorn Insurance agent. Chances are your policy includes a stipulation that the insurance company be notified promptly. Plus, in chatting about the situation you can inadvertently waive some of your rights in the case. More importantly, by inviting the insurance company in early in the process, the company can sometimes offer an early settlement that avoids a lawsuit. After all, the insurance company has a team of experts -- claims adjusters, appraisers, lawyers, and medical experts -- who have probably been down this road before and know exactly how to get mutual satisfaction for both sides without straining neighborly relations.

Is that It?

No. There are additional coverages such as flood and earthquake damage for your home. In fact, just about any contingency can be covered by adding clauses and conditions known as endorsements or riders to a standard policy.

When The Time Comes

If you do suffer property damage or injury or incur liability, it is time to file a claim. You will be asked to fill out a claim form -- the formal document on which you request benefits to be paid according to the terms of the policy. Be complete and supply as much detail as you can and, of course, be truthful. To support your claim, it may be necessary to supply some documentation. Pictures of your tree atop the neighbor garage, details on the sofa, chairs and CD collection destroyed in the fire, and so forth. The better you document your property beforehand with pictures, receipts and other evidence, the more likely your claim will be processed smoothly. 

Figuring Out The Costs

How much financial settlement the insurance company offers you of course varies with the situation. However, for property damage, it helps to know that there are two basic ways to value your property:

• Actual Cash Value - The replacement cost of the item minus depreciation. For example, a new television set may cost $500. If your 7-year-old TV set gets damaged in a fire, it might have depreciated 50%. Therefore, the televisions remaining value would be $250.

• Replacement Coverage - The cost of replacing an item without deducting for depreciation. So the current cost for a TV set with features similar to the 7-year-old one damaged by fire would determine the amount of compensation. If the similar new television costs $500, that would be the amount of your coverage.

You may want to check your policy to see which kind of coverage you currently have. For example, if you would prefer replacement coverage and do not have it, this coverage can be added to your policy for an increase in your premium of about 10% to 15%.

What is A Deductible?

When you file a claim for property or loss, the payment made by the insurance company is subject to a deductible. Basically, when you purchase your insurance policy, you agree to pay the first specified amount of any damage as your share of the cost of repair or replacement. The insurance company adjusts its rates accordingly, charging less for those who agree to pay a larger first share -- or deductible. For example, if your home should sustain damages costing $2,000 to repair and you have a deductible of $250, you would pay $250 and the insurance company would pay $1,750.

What is A Claims Adjuster?

Once you have reported your claim to your agent, he or she will contact your insurer claims adjuster -- usually within the hour. The adjuster will begin the settlement process, the length of which will depend on the cooperation of the other party, if any. While some claims are relatively easy and straightforward, others are more complicated. Your adjuster is charged with investigating the claim and then making a recommendation to the insurance company. The recommendation can be to accept the claim and pay the full amount requested, accept part of the claim and make a partial payment or refuse the claim and make no payment. The insurance company will then make a final decision regarding your claim and notify you.

A Final Note

The amount of compensation offered can vary according to the adjuster analysis of your claim. Keep in mind, if you feel it is too low, you do not have to accept the first amount offered. While you may have to do some research to prove a higher payment is valid, it may be worth it. Your Kinghorn Insurance agent should be able to assist you in reaching a fair settlement.

HOME INVENTORY
Taking Inventory of Your Home

No one plans to lose their valuables and other belongings in a burglary, a fire or a natural disaster. If one of these unfortunate events destroyed your home, would you be able to report exactly what you lost to the police, to the Internal Revenue Service or to your Kinghorn Insurance agent? It is easier to do an inventory of your home now rather than sitting down afterward and attempting to remember a lifetime worth of purchases.  

Start Today with our
Printable Inventory Form

Write down any valuable items with their serial numbers (usually found on the bottom or back of major appliances) along with the method of acquisition (purchased, inherited or received as a gift), date purchased and price or approximate value. Attach receipts, if possible. Remember to include furniture, appliances, carpeting, jewelry, artwork, toys and the contents of your closets, cabinets and drawers. Contact your Kinghorn Insurance agent with questions or concerns.

Play It Safe With A Videotape

Videotaping each room of your house can make taking inventories easier. Photographs and a tape recorder can substitute for a video camera. A complete video inventory should contain verbal descriptions of major assets as well as their value. Remember your garage, attic, basement and the exterior of the house, plus your landscaping and fencing. If possible, make it a family project by having everyone take turns describing the objects in your home. Store the video or photographs along with this inventory in a safe-deposit box and send a copy to a friend or relative.

Do Not Forget Important Documents

Extremely important documents should be photocopied or scanned and save the information on CD's or diskettes . Keep one copy in your home and the original, where possible, in a safe-deposit box. Important items include, but are not limited to, the following:

• House - Escrow, title, deed, insurance policy.

• Personal - Birth certificates, medical history, passports, insurance certificates, credit card numbers, will.

• Automobile - Certificates of ownership, finance contracts, registrations, insurance policy, driver licenses.

• Finance - Account numbers for checking and savings accounts, CDs, stocks, bonds, other significant investments.

• Tax - Copies of the first two pages of your state and federal returns for the past five years. Complete returns with appropriate receipts and canceled checks should be kept in a separate file box.

A Final Note

Most policies limit the amount of reimbursement for theft of valuable items, such as jewelry, furs, silverware and guns. If you have some particularly valuable items in these categories, you may need to purchase additional coverage called a "floater." These types of policies cover each item individually and are usually quite inexpensive. This information will only be beneficial if you make use of it now. By inventorying your personal possessions ahead of time, you will save yourself from frustration should disaster strike. Your First Southeast agent can help you determine whether your property is adequately protected.