We all have times in our lives when unexpected accidents occur. That's why we insure our valuables, so that when those sudden tragedies occur, we will at least have a protective financial umbrella. But, how can we best prepare ourselves for those times and how do we go about filing an insurance claim?

Before Experiencing a Loss, Know Your Policy

It is extremely important that you know what your insurance covers before experiencing a loss. Never take it for granted that something is covered by your policy; make sure that it is. Read your policy and pay particular attention to the perils, property, and situations covered, as well as dollar limitations and exclusions. Today, insurance policies are written in a way that is easier to read and understand.

After you have read your policy, find out how your company will reimburse you. Typically, companies will pay an insured back in one of two ways--actual value or replacement costs. When a company pays in actual cash value, an insurer will deduct the depreciation value of your property from the cost of a new replacement item. A company that pays the replacement costs will sometimes give you the actual cash value of an item before an item is replaced and then, once you've replaced an item, will reimburse you for the rest.

Disputes sometimes arise over the cash value of depreciated items. To prevent this, it is a good idea to take a regular inventory of your insured items. Keep receipts, appraisal certificates, and other items supporting the value of your items. Some have even found it helpful to include photographs and videotapes in their inventory. Keep your inventory in a safe place, like a safety deposit box, in case of a fire or another tragedy which might make these items inaccessible.

If You Have an Accident

When you have an accident, there are a few important steps that you can take to help smooth the entire process and speed payment of your claim:

Homeowner's Checklist 1. Do not alter the condition of your house before it is inspected by the adjuster; however, you should take steps necessary to protect your property from further damage by making emergency repairs. 2. Contact your insurance agent or company representative as soon as possible with all information relating to your claim. 3. Follow up your call with a written explanation of your claim. 4. Keep a record of all expenses you incur as a result of property damage, including expenses involved in temporary repairs. Also include any hotel and meal expenses, since these costs may be covered. 5. Take photos of the site after an accident or other disaster.

Car Owner's Checklist 1. Get help for the injured. 2. Notify the police about the accident. 3. Exchange information (name, driver's license number, insurance) with other drivers involved in the accident. 4. Don't discuss fault or blame at the scene of the accident. 5. Get the names and numbers of any witnesses. 6. Contact your insurance agent or broker. 7. Take photos of the accident site. 8. Get estimates for repairs. 9. Keep records of any expenses you incur as a result of the accident.

Is Your Loss Covered?

Most people know when they suffer a loss, but question whether or not to file a "formal" claim. Some people hesitate because they are afraid their policies will be cancelled or their premiums will increase.

The best thing to do is to call your insurance agent or company representative and ask these three questions:

1. Is this claim covered by my policy?
2. Will this claim likely exceed my deductible?
3. What will filing this claim do to my future insurance costs?

Your insurance agent will help you answer these questions and guide you to the best choice about whether or not to file a claim.

Who Will Settle Your Claim?

Many insurance companies authorize your insurance agent or company representative to settle smaller claims. In most cases, an insurance adjuster will contact you via phone within 48 hours after you make a claim. This person is a claims professional who is either a staff adjuster or an independent adjuster.

Staff adjusters are employed by insurance companies and are paid a salary, just like employees in other businesses. Independent adjusters are owners or employees of adjusting companies hired by insurance companies to adjust claims. In either case, the adjuster represents the insurance company and one or the other does not make a difference in how your claim is handled.

Despite what some people believe, adjusters are not rewarded for minimizing claim payments. Rather, they are judged on the number of claims they resolve, promptness and quality of their reports, their promptness in settling a claim, the number of complaints made against them, and their compliance with company rules.

In some serious cases, like in the case of a major house fire, you may be approached by a public adjuster. A public adjuster is different than the two individuals mentioned above. Unlike those individuals who work for an insurance company, a public adjuster works for you, the policy holder. They usually ask you to sign a contract entitling them to a certain percentage of the total claim--this gives them an incentive to work hard on your behalf and to maximize your claim recovery.

Some may choose to hire an attorney in the severe cases. If you hire an attorney, you are responsible for paying any legal expenses. In addition, many attorneys are usually paid 25 to 40 percent of the settlement.

Settling Your Claim

Settling Your Home Insurance Claim Your policy allows the insurance company to inspect your damaged property. The adjuster will probably take photos of your damaged property and spend time with you discussing the damage, your lost items, the property value, and your coverage. You can choose the contractor of your choice to estimate repair costs. The contractor must be skilled and experienced in repairing the type of damage that occurred to your property. Usually an adjuster can provide you with a list of knowledgeable repair contractors. As soon as the estimates are made available, the adjuster and contractor will discuss how the repairs will be made and at what cost. You will be asked to submit an inventory of your missing items. The adjuster may suggest different contractors who can repair, clean, and salvage damaged property. If you have a mortgage payment, payment will be made to the mortgage company. If you've assigned your insurance claim to a contractor, the contractor will also be named on the settlement check.

Settling Your Car Insurance Claim There are typically three main items of concern when considering an auto insurance claim: 1. Cause of the accident 2. Injuries to all persons covered in the policy 3. Damage to the car(s) An adjuster is concerned about possible liability claims filed against you. An example of a liability would be a claim by the other driver in a two-car accident that your negligence caused the accident. The adjuster will thoroughly investigate the case, taking statements from the various involved parties, visiting the accident scene, taking photographs, searching for witnesses, and reading the police reports. Note: A police report is not legally conclusive. A driver can be found to be partially at fault even if the police reports indicate that you did not cause the accident. The adjuster will try to settle the insurance claim with you. In the process, the adjuster will have to ask victims for certain information. They may ask the victims to authorize doctors and hospitals to release medical reports in order to allow the insurance company to monitor your treatment and make sure that injuries were caused by the auto accident. The insurance adjuster may also ask for other documentation, such as employment records in case of lost earnings. Most likely, they will also ask for you to gather one or two estimates from auto body repair shops of your choice. If there are "depreciable" items that are replaced during the accident, like a two-and-a-half year old battery, you may have to pay part of the replacement costs.

Receiving Your Payment

Once the repair estimates are completed, you will receive a check for the covered damage minus the depreciable item costs and the cost of your deductible amount on your policy. If you have a car loan, the lending institution will also be named on the check.

If another driver is found liable for the accident, you may be reimbursed for your deductible amount from the other driver's insurance company.

Call Plapp Insurance

Understanding the process of filing and receiving a claim can sometimes be quite confusing. If you have any questions regarding claims, please call us. We have years of experience working with insurance claims and can answer any insurance query.