When filing an insurance claim, many people forget items. Others spend numerous months – yes, months – trying to remember what they own(ed). And quite a few find months after the claim is settled that they didn’t claim and will never recover thousands of dollars with of personal property.
So what can you do maximize your claim and minimize the time it takes to file? The National Association of Insurance Commissioners (NAIC) suggests that you take an inventory of your belongings. This should include taking photographs or a video of each room. The documentation will provide your insurance company with proof of your belongings and help to process claims more quickly in the event of disaster. Remember to include items you rarely use (e.g., holiday decorations, sports equipment, tools, seasonal items, etc.).
To file claims more quickly, the NAIC suggests that you keep sales receipts and/or canceled checks. I also suggest that your photos and written report are compiled room-by-room, as adjusters and insurance companies state that is the preferred format when filing a claim.
Without an inventory, could you remember what you own? Insurance adjusters state that people with an inventory can file their initial claim within 36-48 hours of a disaster. Those without an inventory take from 4-12 months to complete the process. And because they have documentation listing their belongings, they are able to maximize their claims. Less is forgotten, and the photographs support ownership.
A fire victim’s experience provides some insight � after 10 years of marriage, he and his wife purchased the house they planned to stay in for many years to follow. It’s a beautiful house with a touch of charming local history and plenty of breathing room for their four growing boys. As a child, his wife actually dreamed of owning the place!
Two months later, they woke in a haze of smoke with alarms sounding. Though the family escaped unharmed, an electrical fire left the basement completely burned out while the rest of the home and personal belongings were affected by heat, smoke and water.
They are responsible people who were fully insured. In fact, most of their belongings were documented on a written report and also videotaped. Unfortunately, the documentation and backups were temporarily stored in their home due to the recent move.
The outcome of their insurance claim was somewhat unusual in that they recovered more than 90 cents on the dollar (most victims state they recover between 30). But the claim required more than 5 hours of work per day, 7 days a week, for 16 months. The process left them, in his words, “burned out” as well!
This shows that even if you’re fully insured, you most likely are not aware of everything you must consider to properly issue a claim. Best advice: photograph your contents and have an accurate list. If you don’t have the time or choose not to do it yourself, use the insight and experience of a professional. The cost is well worth the investment in peace of mind. You’ll maximize your claim and minimize the time it takes to complete the process.
