What to do in the event of a claim
Questions Our
Clients Frequently Ask Following an Accident
or Disaster
What you do after an auto accident or a
natural disaster can save you time, money
and energy. Below are some of the most
commonly-asked questions, and some answers
that may not be "common knowledge."
What should I do if
I'm involved in an auto accident?
First, stop your vehicle and move it to a
safe place, out of traffic if at all
possible. But don't leave—by law, you are
required to stop and remain at the scene of
the accident. Check with passengers in all
vehicles involved to determine if there are
any injuries and call for medical assistance
if needed.
Exchange information with the other driver(s)
involved in the accident. You should
exchange names, addresses, telephone
numbers, type and ownership of vehicles,
insurance information and a description of
damages.
Get the names, addresses and telephone
numbers of any witnesses. Call the police.
The police will advise you if their response
to the scene is not necessary. Do not admit
fault to anyone as there could be multiple
factors contributing to an accident. Give
factual details of your recollection of the
accident and cooperate with the police in
providing answers to their questions. If
your vehicle needs to be towed, request that
it be removed to a repair shop of your
choice. As soon as possible, contact the
company carrying your insurance to report
the loss.
What should I do in
the event of a homeowners or commercial
property loss?
As soon as possible, contact the
company carrying your insurance to report
the loss. Make reasonable and necessary
repairs to protect your property from
further damage or loss. Keep a record of
repair costs and retain receipts for any
expenditures. If the loss involves theft or
vandalism, notify the police immediately.
What should I do if
there's an accident at work, and a potential
workers' compensation claim?
First, make sure the injured employee is
comfortable. Do not move the employee if
head, neck or back injuries are suspected.
Make sure the injured employee receives
professional medical attention. Complete the
accident reporting form required in your
state. You should also contact your
insurance company to report the accident and
provide information concerning the employee
and their injury.
What if a storm has
damaged my home so severely that I can't
stay in it?
Most homeowners policies provide coverage
for living expenses if you can't stay in
your home. Most policies will reimburse you
for "reasonable expenses" over and above
your normal living costs (such as lodging,
for example, since it's over and above your
mortgage or rent payment) if your home is
uninhabitable as a result of a covered peril
and you must temporarily relocate. But most
policies will reimburse you only for those
food expenses over and above what you would
normally pay for food.
You must keep all receipts in order for the
expenses to be considered part of the loss.
The expenses must be in line with normal
living costs and must be a necessary and
direct result of the loss. Policies
typically limit recovery under "additional
living expenses" to a percentage of the
amount of coverage on the home itself.
If trees on my
property are blown down am I covered?
Many homeowners policies don't provide
coverage for damage to trees caused by wind.
But if a tree falls and damages insured
property, such as a house or a fence, the
damage is almost always covered.
I've reported my
claim, now what should I do?
Do everything in your power to guard against
follow-on damage to your property. Secure
your property, by temporarily boarding
windows and tacking down loose roof
shingles. If possible, dry carpets and
personal property, to prevent any further
damage. If you don't take preventative
measures, and additional damage results, it
may not be covered.
Is there anything I
can do to help speed up the claims process?
An adjuster will contact you as soon as
possible, but priority will be given to the
most severe losses. Larger claims may be
settled in stages, not all at once. While
you wait for the adjuster to contact you,
you should:
- Estimates.
Get at least two, and preferably three
repair estimates for the adjuster to
review.
- Photos.
Take photos of the damaged property and
gather any pictures showing the property
before the loss.
- Replacement
Costs. List all damaged
property, including each item's
description, age, original cost, place
of purchase, and estimated replacement
cost. Include any receipts or canceled
checks for these items.
Power was out
for a few days and the food in my
refrigerator and freezer were spoiled. Is
the replacement cost covered?
Most residential policies have a "power
failure" exclusion and don't cover food
spoilage that results from power outages. If
you live in an area that has frequent storms
and power outages, your best bet is to keep
several large coolers in storage, ready for
use.
My stereo and
computer equipment were damaged by a power
surge. Is that covered?
Probably not. Most homeowners policies
provide coverage under "sudden and
accidental damage from artificially
generated electrical current." But coverage
doesn't apply to loss of transistors,
computer chips, and similar items. So,
damage from a power surge wouldn't be
covered for your computer, TV or stereo.
How long after an
adjuster reviews my claim should I have to
wait to receive a check?
It depends on the cause of the claim. If
your claim is an isolated incident, you're
more likely to get a resolution quickly. If
your claim is one of many, the claim process
is likely to take far longer. You should
call back a few days after your interview
with the adjuster, to see when they
submitted the paperwork to your insurance
company. You may also want to contact the
insurance company after the adjuster has
forwarded them their report.
I've just received
my claim check and it's not nearly what I
expected. What recourse do I have?
If the check is for an amount that's lower
than you expected, it's usually because of
policy terms that require settlement on an
actual cash basis, to be followed by a
separate payment for replacement costs when
repairs or replacement are completed. Check
with CIG or with your insurance company.
What's the
difference between actual cash value and
replacement-cost coverage?
If the policy indicates that settlement will
be on a replacement-cost basis, then payment
will be made for the actual cost, at today's
prices, to repair or replace, limited only
by the total amount of coverage that was
purchased. If the adjustment basis is actual
cash value, settlement will be made by
determining the replacement cost at today's
prices, less a reasonable amount for
depreciation, age, or obsolescence. Some
policies provide coverage for the home on a
"guaranteed replacement cost" basis, in
which case the carrier pays whatever it
costs to repair or rebuild the home,
regardless of policy limits. |
