The direct benefit of owning insurance becomes evident when a loss occurs and it is time to file a claim. Even when you have a legitimate claim, however, you may want to consider whether you should do so. A small claim might be best ignored. Recall that insurance is for the losses you cannot afford. Filing frequent claims (or even notifying the agent of a loss) can result in an increase in your rates. One claim probably will not cause a problem. Having a second claim within a two-year period may be looked at negatively. Of course, if you have a large claim, you would want to file for its recovery. Here’s what you should do when you have a loss.
Contact Your Insurance Agent
The first step contacting your agent should be taken as soon as possible, but only after you have decided that you will ultimately file a claim. Follow the agent’s instructions regarding who to contact next (including filing a police report) and what to do to minimize the magnitude of the loss. Then keep the company informed of every- thing relevant to the loss, even if it requires daily or weekly contact until the claim is settled. The tenacious claimant is likely to collect fully on a loss
Document Your Loss
You carry the burden of proof whenever a property or liability loss occurs. Adequate documentation of the circumstances and theamount of the loss is essential. In the absence of such documentation, the insurance company will generally interpret the situation in the manner most favorable to its interests, not yours.
The best way to document a theft, fire, or other personal property loss is with pictures. Photograph or videotape all valuable property in your home when you purchase it or when you obtain insurance coverage. Write the date of purchase, price paid, description, model name and number, and serial number (if any) of the property on the back of the photograph or verbally record it on the videotape. Prepare a list describing any items not photographed or videotaped. Keep such records in a safe-deposit box, in a file cabinet at work, or with a relative. If a loss occurs, present a copy of your documentation to the agent or insurance company. You should always file a police report if you become involved in an automobile accident. Insureds also should prepare a narrative giving the time and place of the accident, the direction of travel and estimated speed of the cars involved, the road and weather conditions, and the behavior of all parties involved. Include a diagram of the accident scene showing the location of the vehicles before, during, and after the time of impact, plus the locations of traffic lights and signs and any landmarks (for example, road construction or repairs). If possible, obtain the names and contact information for witnesses. Police reports are also advisable (and often required) when filing a theft claim of any type.
File Your Claim
An insurance claim is a formal request to the insurance company for reimbursement for a covered loss. All of the documentation and information will be requested by the insurance agent or a claims adjuster (the person designated by the insurance company to assess whether the loss is covered and to determine the dollar amount that thecompany will pay). Insurance companies require that claims be made in writing, although the adjuster may assist you in completing the necessary forms.
Sign a Release
Part of the final step in the claims-settlement process is to sign the release, which is an insurance document affirming that the dollar amount of the loss settlement is accepted as full and complete reimbursement and that the insured will make no additional claims for the loss against the insurance company. Signing the release absolves the insuranc company of any further responsibility for the loss. Resist the temptation to sign a release until you are sure that the full magnitude of the loss has become evident.
Contact Your Insurance Agent
The first step contacting your agent should be taken as soon as possible, but only after you have decided that you will ultimately file a claim. Follow the agent’s instructions regarding who to contact next (including filing a police report) and what to do to minimize the magnitude of the loss. Then keep the company informed of every- thing relevant to the loss, even if it requires daily or weekly contact until the claim is settled. The tenacious claimant is likely to collect fully on a loss
Document Your Loss
You carry the burden of proof whenever a property or liability loss occurs. Adequate documentation of the circumstances and theamount of the loss is essential. In the absence of such documentation, the insurance company will generally interpret the situation in the manner most favorable to its interests, not yours.
The best way to document a theft, fire, or other personal property loss is with pictures. Photograph or videotape all valuable property in your home when you purchase it or when you obtain insurance coverage. Write the date of purchase, price paid, description, model name and number, and serial number (if any) of the property on the back of the photograph or verbally record it on the videotape. Prepare a list describing any items not photographed or videotaped. Keep such records in a safe-deposit box, in a file cabinet at work, or with a relative. If a loss occurs, present a copy of your documentation to the agent or insurance company. You should always file a police report if you become involved in an automobile accident. Insureds also should prepare a narrative giving the time and place of the accident, the direction of travel and estimated speed of the cars involved, the road and weather conditions, and the behavior of all parties involved. Include a diagram of the accident scene showing the location of the vehicles before, during, and after the time of impact, plus the locations of traffic lights and signs and any landmarks (for example, road construction or repairs). If possible, obtain the names and contact information for witnesses. Police reports are also advisable (and often required) when filing a theft claim of any type.
File Your Claim
An insurance claim is a formal request to the insurance company for reimbursement for a covered loss. All of the documentation and information will be requested by the insurance agent or a claims adjuster (the person designated by the insurance company to assess whether the loss is covered and to determine the dollar amount that thecompany will pay). Insurance companies require that claims be made in writing, although the adjuster may assist you in completing the necessary forms.
Sign a Release
Part of the final step in the claims-settlement process is to sign the release, which is an insurance document affirming that the dollar amount of the loss settlement is accepted as full and complete reimbursement and that the insured will make no additional claims for the loss against the insurance company. Signing the release absolves the insuranc company of any further responsibility for the loss. Resist the temptation to sign a release until you are sure that the full magnitude of the loss has become evident.
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