In this article, we’re going to look at how the value of a property claim is determined. This could relate to your real estate property or your personal property, such as your automobile or the contents of your home.
Before we go any further…remember this statement:
THERE IS NOTHING IN YOUR POLICY THAT REQUIRES YOU TO GET MORE THAN ONE ESTIMATE.
Many times, you’ll hear an adjuster recommend that you get three estimates. That’s just not necessary, and wastes your time and money. That procedure had everything to do with price, but has almost nothing to do with quality and value. Your home or your property is not a commodity…a mere rubber stamp of every other piece of property. It should not be treated like a commodity. Don’t let an adjuster get away with this.
Here’s another statement to remember:
AN ESTIMATE IS AN APPROXIMATE COST OF REPAIR OR REPLACEMENT OF PROPERTY. IT IS NOT ETCHED IN STONE. IT IS NOT A CONTRACT TO REPAIR OR REPLACE PROPERTY.
Automobile Damage Appraisals
If your loss is an automobile loss, and your vehicle is damaged, YOU seize the initiative and take your vehicle to the body shop of YOUR CHOICE. It would be best to have your vehicle inspected by the insurance company appraiser and your chosen body shop appraiser at the same time. That way, they can agree on the scope of damages before they start calculating the repair costs.
Read your policy. Some insurance companies actually specify in their policy that you must take your vehicle for repairs to the insurance companies “Approved Vendor.” But most policies do not. However, most insurance companies will try hard to direct you to their “Approved Body Shop Vendor.”
Just remember this. Is the “Approved Vendor” on your side or on the insurance company’s side? Did that body shop make a special deal with you to repair your vehicle? NO! So, just who do you think that “Approved Vendor” is going to be loyal to?
The insurance companies make deals with body shops so the repairs will get done at a reduced price. That usually means cutting corners on quality and using inferior aftermarket parts. You do understand that a car can look great from the outside after repairs, and not be the same car you had before the accident?
In Chapter 23 of my book, “Insurance Claim Secrets Revealed!”, I talk about my experience recently in an auto accident. One of the things I write about is insisting that your body shop appraiser write an estimate using Original Equipment Manufacturer (OEM) parts instead of aftermarket parts. Don’t give in on this point, or you’ll be compromising your safety in that vehicle after it’s repaired.
Once you have an OEM estimate from your chosen body shop, you’ll compare it with the insurance company appraiser’s estimate. You’ll likely find that your estimate is higher in price than the insurer’s estimate. Negotiate from YOUR ESTIMATE, not the insurer’s estimate. Once you’ve gotten agreement on the scope of damages and the amount of repairs, you’re ready to settle that part of the loss.
Don’t sign off on the release until the repairs are completed and you have done and extensive test drive and inspection of the repairs. Once you’re satisfied, then you can consider signing off. Have your attorney review the form before you sign it.
Homeowners and Renters Appraisals
In a homeowners insurance loss, in which the dwelling itself is damaged, the claims adjuster will inspect the dwelling for damage. He will photograph the damage and take measurements. He will make notes of all of the damaged items, and note the quality of the building materials. He will note the cause of the damage, if it can be readily determined. All of that information is commonly referred to as the “Scope of Damages.”
You must get a restoration contractor of your own to inspect the damages and write an estimate. Don’t just accept the estimate of the claims adjuster.
It would be a good idea to have your contractor meet you and the adjuster at your home at the time of the inspection. That way, you can all look over the damage, and you, the adjuster and the contractor can agree on the scope.
There should be an agreement between you, the policyholder, the contractor, and the adjuster on the scope of damages. Likely, you won’t have a chance to accept the adjuster’s scope until he takes the information from his inspection back to the office and enters that information into his estimating software in his computer. Most adjusters will be able to print a copy of the scope and send it to you. You should insist on a written scope of damages from the adjuster.
Don’t sign anything without having your attorney review it FIRST.
Adjusters are human and sometimes miss damages. So do contractors. That’s why there should be an agreement on the scope of damages…before you ever begin discussing the cost of repairs.
Think about it another way. Let’s say you are going to build a new house. Your architect would have to make drawings and specifications of all of the materials that were going to be used to build that house. When it comes time to get bids from contractors, everyone bidding has the same information upon which to base their bid.
It’s no different when you’re getting bids and estimates in an insurance claim.
Once you have the scope of damages, you can then expect to receive the estimate from your contractor and the adjuster. The best way to handle this is to insist that the contractor and adjuster reach an agreement on the amount of the estimate. Once that’s done, the adjuster can report to the insurance company and have them pay the claim.
CONTENTS, or UNSCHEDULED PERSONAL PROPERTY
Get a copy of a JC Penney catalog. Even get two…one Fall/Winter, one Spring/Summer. Get your hands on as many other catalogs as you can find. As you look at the pages of the catalogs, you’ll remember the things that you had in your home. You will find hundreds or thousands of dollars in personal property that you likely would not have remembered owning. Not only will you remember dozens and dozens of items, but you’ll have a retail price from a reputable retailer right at your fingertips.
Please don’t misunderstand what I’m telling you to do here. I’m NOT telling you to write down items on your inventory list that you did not own. That’s fraud, and you can go to jail for fraud. I’m simply showing you a way to remind yourself of things long ago purchased, and possibly stored and forgotten. For example, how many parents bought a vaporizer to run in their children’s rooms at night when the young children were sick? That vaporizer might not have been used in years, but you owned it, and you have a right to collect for it under the terms of your policy.
When you have completed the Contents Inventory Worksheets, make copies and submit the copies to the claims adjuster.
In closing, remember this. All insurance claims adjusters and appraisers use estimating software these days. This software is a vast database of materials and labor for any kind of property. But many companies make a deal with the software designers to write software that undervalues the repair costs for the property. Consequently, when the appraiser uses that software, estimates for repair are consistently lower than the actual costs. That’s why you need your own estimates.
Take control of your insurance claims! Add hundreds or even thousands more dollars to your claim settlements!
Showing posts with label adjuster. Show all posts
Showing posts with label adjuster. Show all posts
Tuesday, March 24, 2009
Saturday, June 14, 2008
Tornadoes, Floods, Wildfires and a New Hurricane Season!
After the March tornadoes, I posted a Top Ten List of extremely important things to do after your property is damaged in a disaster. In the next ten postings, I'm going to expand on each of the strategies in the Top Ten List.
Back in March, we here in the metro Atlanta area had an F4 tornado strike the downtown area of Atlanta. That tornado did about $300 million in damages. About a month later, another group of twisters hit between Atlanta and Macon, doing about the same amount of damage.
Now, we're seeing tornadoes all over the middle of the USA, and massive flooding has struck four or five states, affecting hundreds of thousands of people. And don't forget the wildfires charring Southern California.
But...cheer up! We have a long Hurricane Season that began June 1, and goes until the end of November!!
The following is an excerpt from my book, "Insurance Claim Secrets REVEALED!"
The first strategy in the Top Ten List is....SLOW DOWN.
How many times have you heard an insurance company’s radio or television commercial say how fast they settle claims? That really sounds good, doesn’t it? Who wouldn’t want their claim settled quickly?
But my long experience as an adjuster has been that hastily settled claims are settled far below what they are worth. It’s almost as if the policyholder or claimant becomes willing to give the insurance companies a big discount in return for the speed of getting a settlement check.
Don’t be one of those people who are motivated by a quick settlement check.
I’m not suggesting that you should drag your feet and be uncooperative in the process. You should be very cooperative...but on your own terms, not the insurance company’s terms. I’m saying that if you are in control of the claims process like you should be, it will not usually be speedy.
The process will move along in a businesslike manner, but you must not allow yourself to be rushed into a settlement. Even if the insurance company sends you a check before you’re ready to settle, you’re not required to cash it.
Let’s look at the first 24-48 hours after you have a loss. It really does not matter if your loss is small or large or a jumbo catastrophic disaster. It does not matter if your loss is a property loss…like a hurricane or flood or tornado or fire, or a casualty loss, like an automobile accident. There are some things that you must do to protect yourself, your family and your property.
FIRE, CATASTROPHIC WINDSTORM (HURRICANE/TORNADO) OR FLOOD CLAIMS
FIRST THING TO DO IS TO CONTROL THE SITUATION
1. Make sure everyone is safe and accounted for…including the pets.
2. Get medical attention for anyone in the family that needs it…including the pets.
3. Contact your public utility companies. Have them send out a technician to shut off the water, power and gas immediately. That itself will increase the safety factor in your damaged dwelling.
Speak with the Fire Marshall and the local Building Inspector regarding the safety of the dwelling. You want to be sure it’s safe for you to enter the dwelling after the loss. If it is not safe, don’t go in there…no matter what. You can replace STUFF, but you cannot replace YOURSELF.
AFTER THE UTILITIES ARE SHUT OFF, AND BEFORE THE RESTORATION COMPANY BOARDS UP THE DWELLING…SAFELY do the next step.
4. Camera work
Get hold of a video camera and a couple of video tapes. You might need a floodlight or other very powerful battery-powered light. If your dwelling is safe to walk through, take video footage of every room in the house where there is damage. Take footage from every angle in every room. Make sure you take footage of your damaged contents. Shoot footage inside closets…in open drawers, inside boxes, on bookshelves, inside cabinets, in the garage where lots of junk is stored. Take shots of all four sides of your home from the outside. Take footage of the debris in the yard, especially if it has contents items that the fire department threw out in the yard.
If you can’t get a video camera, then use a digital camera and take still photos. If you can’t get a digital camera, use a 35mm camera. Use the camera in your cell phone. Heck, use disposable cameras. JUST TAKE THE PHOTOS AND GET YOUR DAMAGES ON FILM!!
NEVER give your film negatives or original videotape to the adjuster. Give copies of the photos and videos, if they ask for them. Keep track of your expenses for photos and videos…you can recover that cost.
Want to know why camera work is so important?
-A photo is worth a thousand words.
-Photos trigger memories, and remind you of building and contents items that were destroyed or damaged.
-Time is of the essence. If you’re adjuster can’t get to your property for a couple days (or weeks in hurricane losses), and you need to protect your property, you can carefully photograph the areas that you are protecting before you cover them or alter them. That way, you’ve preserved evidence of the damages.
5. Notify your relatives or closest friends of the loss. Friends and relatives can be extremely helpful to you…but only if YOU control what they do.
A. Do NOT take advice from your friends and relatives, unless they have experienced a loss EXACTLY like yours, and were successful in getting every dollar they were owed. If that actually happened, they probably have a copy of this book and followed my advice to the letter.
B. Friends and relatives can be great witnesses of the damage. They can help take photos and videos. They can be witnesses when you meet with the adjuster or your contractor. They can babysit for you. They can store things temporarily for you. They can take care of your pets. They can make beer runs to the store for you while you’re taking care of your claim.
6. Notify the insurance company. It is certainly acceptable to phone the agent or company claim department first, but be aware that many policies require you to report a claim in writing. Make sure you know what your policy language says regarding submitting a Notice of Loss. THIS IS CRUCIAL!!! If you do not notify your insurance company of your loss in the way the policy says to do it, your claim could be denied.
7. Determine what it’s going to take to secure your property and protect it from further loss. This is part of your responsibility in your insurance contract. If necessary, contact a disaster restoration company to board up the building, or tarp the roof, or extract the water, etc. IF YOU DO THE WORK YOURSELF, OR ALLOW OTHERS TO DO FREE WORK FOR YOU, THE INSURANCE COMPANY MAY NOT PAY YOU FOR YOUR TIME.
8. SERIOUSLY CONSIDER HIRING A PUBLIC ADJUSTER (PA) IN THE FIRST 24-48 HOURS (see Chapter Nine about Public Adjusters in my book).
9. If you need to contact an emergency service provider or disaster restoration contractor, go to the websites listed below to find one.
SUPER IMPORTANT TIP!!!
A restoration contractor is very different than a general contractor. Most general contractors who do remodeling or new construction do not have the skills and knowledge that a restoration contractor has.
For one thing, the restoration contractor is very familiar with the insurance claims process, and how insurance companies pay for repairs. The restoration contractors use similar estimating software to that used by the adjusters and insurance companies. A general contractor who submits an estimate in an unacceptable form to the insurance company or adjuster just annoys them, and slows down your claim.
Another reason to find restoration contractor is that they are usually full service contractors. They will be able to do temporary or emergency cleanup and board up. They will own the equipment for drying and water damage remediation. They are familiar with the kinds of damage that fires, wind and water do to homes. Finally, they are experts at writing accurate estimates for these specific kinds of damages.
General contractors who do not make their living in insurance restoration do not have this kind of equipment and experience. Period.
You can also look in your local Yellow Pages under “Disaster Restoration,” or “Fire Restoration,” or “Water Damage Restoration.” Look for logos that say “DKI,” or “ASCR,” or “AAORC.”
DKI - Disaster Kleen-up International. Headquartered in Chicago, IL, is a network of the leading independent property damage restoration contractors across North America. You can ask for a referral at 888-735-0800, and also find them at: www.disasterkleenup.com
ASCR – The Association of Specialists in Cleaning and Restoration, Inc. is the leading trade association for cleaning and restoration professionals worldwide, and the foremost authority, trainer and educator in the industry. You can ask for a referral in your area at 800-272-7012, or the website: www.ascr.org
AAORC - American Association Of Restoration Contractors, is a national network of reputable and reliable restoration contractors who provide top-notch restoration services. You can call them toll free at 866-771-1525, or the website: www.aaroc.com
Call at least two restoration contractors, if possible. Ask them to meet you at your home to inspect the damage within 24 hours of the loss.
Remember this important point…there is NOTHING in your policy that requires you to get two or three estimates. Meeting two contractors is just a smart way to find one that you like best and want to work with. Check out their references, and ask them for a list of satisfied customer that you can call by phone. ONLY AFTER THE CONTRACTOR CHECKS OUT should you hire him.
10. TIME TO GET ORGANIZED
Start A File
You must create a file immediately after your loss. Go to an office supply store and buy one of those cardboard accordion-like expandable folders that can hold lots of paperwork. Even a cardboard box with a lid on it is acceptable for keeping everything inside it. You don’t have to be fancy, just keep everything in one place. Your file also must be portable, so that rules out using a filing cabinet at home.
During the recovery process, place the following in your file:
Current copy of your policy. If you don’t have a copy handy, call your agent and have him get you a copy immediately.
Copies of all written correspondences (don’t forget emails) between you and ANYONE regarding your claim.
Phone, fax and email address record for everyone involved in the claim.
Photos you have taken of the damages…and the repairs. This includes videotapes or still photos of the damages that you took immediately after the loss.
A cassette tape of your own recorded statement about how the loss occurred. (See Chapter Twenty Five, Recorded Statements.)
A cassette tape recorder, batteries and spare tapes for recording EVERY conversation that you have with the adjuster, claims examiner, appraiser, engineer, attorney, contractor…ANYONE with whom you discuss this claim.
Receipt envelope. ALL receipts pertaining to this loss should be in that envelope. NEVER give the insurance company your original receipts. They should get copies.
Expense log: emergency services, living expenses, mileage, even extra child care, or boarding your pets…ANYTHING that you have to pay for that relates to this loss.
City, County, and State Building Code requirements in writing.
Copy of your state Department of Insurance statutes on Bad Faith Claims, or Unfair Claims Practices. (See the book Appendix for a list of all 50 states’ insurance departments, and their phone numbers. You can also find this free information at my website, www.insurance-claim-secrets.com ).
Waiver of Lien forms (See Chapter Thirty, Settling Your Claim). These forms are also downloadable at the website.
Worker’s list. A list of everyone who works on your home, who they work for, and what work they’re doing. Taking their photo would be a great idea, also.
Professional reports, such as an Engineer report, Cause and Origin report, Fire or Police report, etc.
Copy of all estimates.
Copy of all repair contracts. NO WORK WITHOUT SIGNED CONTRACTS. Also, contractors occasionally find hidden damages that will require supplemental repair costs. YOU are responsible for these costs, even though the insurance company agrees to pay. The insurance company doesn’t own your house…you do. GET IT IN WRITING.
Copies of any advance payment checks you receive from the insurance company.
If you have a contractor, or ANYONE who works on your damaged property, get a copy of their insurance certificates that show their liability insurance is in effect. No insurance, no work. Period. You CANNOT afford to have a worker get hurt on your premises and file a claim against you for liability or medical expenses.
Keep a Journal
Buy a journal book, or just simply use a standard sized legal pad as your claims journal. This means that you should write down EVERYTHING that happens in your claim.
Write down every phone conversation: Date, time, phone number, who you talked to, what was said.
Write down every meeting: Date, time, length of meeting, people in attendance, what was discussed.
Write it down WHEN IT HAPPENS. Don’t rely on your memory a few days later. You’ll be sorry if you try that.
11. Meet the adjuster. (First, read Chapter Seven, Claims Adjusters.)
The following procedure is what a professional claims adjuster SHOULD DO at your first meeting:
Introduce himself and give you his business card.
Sit down with you FIRST and explain what he is about to do.
Find out from you if you’ve ever had a loss before.
READ YOUR POLICY WITH YOU, and answer all of your questions.
Explain in detail the claims process, and the steps he will be taking.
Explain to you, the insured, what your responsibilities are in the claims process.
Then, after all of that…..he should inspect your damage.
If your adjuster does NOT do all of the above, in basically that order…you must realize that you may have a problem right away.
Here’s another tip about adjusters. Most adjusters are likeable people, and try their best to get along and be pleasant. Occasionally, you’ll find an adjuster who is disagreeable, rude and sharp tongued. If you find that you don’t get along with the independent adjuster that has been assigned to your claim, call his supervisor and request that another adjuster be assigned to this claim. Make your request politely but firmly. You do not have to take abuse and poor treatment from an adjuster. If the claims supervisor won’t change the adjuster, call the insurance company and ask them to assign the claim to another adjusting company.
If you’re dealing with the insurance company’s staff adjuster, and getting treated badly, call his supervisor and firmly request another adjuster. If the supervisor doesn’t cooperate, go to his supervisor. Keep going up the ladder until you get what you want. If none of this works, call your State Department of Insurance and file a complaint.
Many times you can meet the adjuster at your location on the same day as the loss occurred. That’s the ideal situation. Some damages can be mitigated (made less severe) by the speed that cleanup begins. For example, you have an icemaker supply line that bursts while you are out, and the red oak wood floor in your dining room gets very wet. If you can get the water up off the floor, and drying equipment in the room quickly, the floor will likely not swell and buckle…and the floor can be saved. If you had to wait 1-2 days for the adjuster to arrive, the floor would likely have to be replaced at much higher cost.
At this first meeting with the adjuster, make requests for advance payments, if necessary. (See Chapter Nineteen, Advance Payments.) If you’ve had a major Contents loss, like fire, smoke or water damage, you’ll need to replace some of these items quickly. If you have had a loss which leaves you unable to live in your home temporarily, you’ll need money to pay for hotel rooms, or temporary housing, or a short term lease for a house or apartment (Additional Living Expense coverage). Insurance companies will make these types of advance payments to the insured when the advance is requested. They seldom offer an advance.
That's all for this first strategy. Watch for more crucial information on the other strategies in the Top Ten List!
For more information, go to: www.insurance-claim-secrets.com
Back in March, we here in the metro Atlanta area had an F4 tornado strike the downtown area of Atlanta. That tornado did about $300 million in damages. About a month later, another group of twisters hit between Atlanta and Macon, doing about the same amount of damage.
Now, we're seeing tornadoes all over the middle of the USA, and massive flooding has struck four or five states, affecting hundreds of thousands of people. And don't forget the wildfires charring Southern California.
But...cheer up! We have a long Hurricane Season that began June 1, and goes until the end of November!!
The following is an excerpt from my book, "Insurance Claim Secrets REVEALED!"
The first strategy in the Top Ten List is....SLOW DOWN.
How many times have you heard an insurance company’s radio or television commercial say how fast they settle claims? That really sounds good, doesn’t it? Who wouldn’t want their claim settled quickly?
But my long experience as an adjuster has been that hastily settled claims are settled far below what they are worth. It’s almost as if the policyholder or claimant becomes willing to give the insurance companies a big discount in return for the speed of getting a settlement check.
Don’t be one of those people who are motivated by a quick settlement check.
I’m not suggesting that you should drag your feet and be uncooperative in the process. You should be very cooperative...but on your own terms, not the insurance company’s terms. I’m saying that if you are in control of the claims process like you should be, it will not usually be speedy.
The process will move along in a businesslike manner, but you must not allow yourself to be rushed into a settlement. Even if the insurance company sends you a check before you’re ready to settle, you’re not required to cash it.
Let’s look at the first 24-48 hours after you have a loss. It really does not matter if your loss is small or large or a jumbo catastrophic disaster. It does not matter if your loss is a property loss…like a hurricane or flood or tornado or fire, or a casualty loss, like an automobile accident. There are some things that you must do to protect yourself, your family and your property.
FIRE, CATASTROPHIC WINDSTORM (HURRICANE/TORNADO) OR FLOOD CLAIMS
FIRST THING TO DO IS TO CONTROL THE SITUATION
1. Make sure everyone is safe and accounted for…including the pets.
2. Get medical attention for anyone in the family that needs it…including the pets.
3. Contact your public utility companies. Have them send out a technician to shut off the water, power and gas immediately. That itself will increase the safety factor in your damaged dwelling.
Speak with the Fire Marshall and the local Building Inspector regarding the safety of the dwelling. You want to be sure it’s safe for you to enter the dwelling after the loss. If it is not safe, don’t go in there…no matter what. You can replace STUFF, but you cannot replace YOURSELF.
AFTER THE UTILITIES ARE SHUT OFF, AND BEFORE THE RESTORATION COMPANY BOARDS UP THE DWELLING…SAFELY do the next step.
4. Camera work
Get hold of a video camera and a couple of video tapes. You might need a floodlight or other very powerful battery-powered light. If your dwelling is safe to walk through, take video footage of every room in the house where there is damage. Take footage from every angle in every room. Make sure you take footage of your damaged contents. Shoot footage inside closets…in open drawers, inside boxes, on bookshelves, inside cabinets, in the garage where lots of junk is stored. Take shots of all four sides of your home from the outside. Take footage of the debris in the yard, especially if it has contents items that the fire department threw out in the yard.
If you can’t get a video camera, then use a digital camera and take still photos. If you can’t get a digital camera, use a 35mm camera. Use the camera in your cell phone. Heck, use disposable cameras. JUST TAKE THE PHOTOS AND GET YOUR DAMAGES ON FILM!!
NEVER give your film negatives or original videotape to the adjuster. Give copies of the photos and videos, if they ask for them. Keep track of your expenses for photos and videos…you can recover that cost.
Want to know why camera work is so important?
-A photo is worth a thousand words.
-Photos trigger memories, and remind you of building and contents items that were destroyed or damaged.
-Time is of the essence. If you’re adjuster can’t get to your property for a couple days (or weeks in hurricane losses), and you need to protect your property, you can carefully photograph the areas that you are protecting before you cover them or alter them. That way, you’ve preserved evidence of the damages.
5. Notify your relatives or closest friends of the loss. Friends and relatives can be extremely helpful to you…but only if YOU control what they do.
A. Do NOT take advice from your friends and relatives, unless they have experienced a loss EXACTLY like yours, and were successful in getting every dollar they were owed. If that actually happened, they probably have a copy of this book and followed my advice to the letter.
B. Friends and relatives can be great witnesses of the damage. They can help take photos and videos. They can be witnesses when you meet with the adjuster or your contractor. They can babysit for you. They can store things temporarily for you. They can take care of your pets. They can make beer runs to the store for you while you’re taking care of your claim.
6. Notify the insurance company. It is certainly acceptable to phone the agent or company claim department first, but be aware that many policies require you to report a claim in writing. Make sure you know what your policy language says regarding submitting a Notice of Loss. THIS IS CRUCIAL!!! If you do not notify your insurance company of your loss in the way the policy says to do it, your claim could be denied.
7. Determine what it’s going to take to secure your property and protect it from further loss. This is part of your responsibility in your insurance contract. If necessary, contact a disaster restoration company to board up the building, or tarp the roof, or extract the water, etc. IF YOU DO THE WORK YOURSELF, OR ALLOW OTHERS TO DO FREE WORK FOR YOU, THE INSURANCE COMPANY MAY NOT PAY YOU FOR YOUR TIME.
8. SERIOUSLY CONSIDER HIRING A PUBLIC ADJUSTER (PA) IN THE FIRST 24-48 HOURS (see Chapter Nine about Public Adjusters in my book).
9. If you need to contact an emergency service provider or disaster restoration contractor, go to the websites listed below to find one.
SUPER IMPORTANT TIP!!!
A restoration contractor is very different than a general contractor. Most general contractors who do remodeling or new construction do not have the skills and knowledge that a restoration contractor has.
For one thing, the restoration contractor is very familiar with the insurance claims process, and how insurance companies pay for repairs. The restoration contractors use similar estimating software to that used by the adjusters and insurance companies. A general contractor who submits an estimate in an unacceptable form to the insurance company or adjuster just annoys them, and slows down your claim.
Another reason to find restoration contractor is that they are usually full service contractors. They will be able to do temporary or emergency cleanup and board up. They will own the equipment for drying and water damage remediation. They are familiar with the kinds of damage that fires, wind and water do to homes. Finally, they are experts at writing accurate estimates for these specific kinds of damages.
General contractors who do not make their living in insurance restoration do not have this kind of equipment and experience. Period.
You can also look in your local Yellow Pages under “Disaster Restoration,” or “Fire Restoration,” or “Water Damage Restoration.” Look for logos that say “DKI,” or “ASCR,” or “AAORC.”
DKI - Disaster Kleen-up International. Headquartered in Chicago, IL, is a network of the leading independent property damage restoration contractors across North America. You can ask for a referral at 888-735-0800, and also find them at: www.disasterkleenup.com
ASCR – The Association of Specialists in Cleaning and Restoration, Inc. is the leading trade association for cleaning and restoration professionals worldwide, and the foremost authority, trainer and educator in the industry. You can ask for a referral in your area at 800-272-7012, or the website: www.ascr.org
AAORC - American Association Of Restoration Contractors, is a national network of reputable and reliable restoration contractors who provide top-notch restoration services. You can call them toll free at 866-771-1525, or the website: www.aaroc.com
Call at least two restoration contractors, if possible. Ask them to meet you at your home to inspect the damage within 24 hours of the loss.
Remember this important point…there is NOTHING in your policy that requires you to get two or three estimates. Meeting two contractors is just a smart way to find one that you like best and want to work with. Check out their references, and ask them for a list of satisfied customer that you can call by phone. ONLY AFTER THE CONTRACTOR CHECKS OUT should you hire him.
10. TIME TO GET ORGANIZED
Start A File
You must create a file immediately after your loss. Go to an office supply store and buy one of those cardboard accordion-like expandable folders that can hold lots of paperwork. Even a cardboard box with a lid on it is acceptable for keeping everything inside it. You don’t have to be fancy, just keep everything in one place. Your file also must be portable, so that rules out using a filing cabinet at home.
During the recovery process, place the following in your file:
Current copy of your policy. If you don’t have a copy handy, call your agent and have him get you a copy immediately.
Copies of all written correspondences (don’t forget emails) between you and ANYONE regarding your claim.
Phone, fax and email address record for everyone involved in the claim.
Photos you have taken of the damages…and the repairs. This includes videotapes or still photos of the damages that you took immediately after the loss.
A cassette tape of your own recorded statement about how the loss occurred. (See Chapter Twenty Five, Recorded Statements.)
A cassette tape recorder, batteries and spare tapes for recording EVERY conversation that you have with the adjuster, claims examiner, appraiser, engineer, attorney, contractor…ANYONE with whom you discuss this claim.
Receipt envelope. ALL receipts pertaining to this loss should be in that envelope. NEVER give the insurance company your original receipts. They should get copies.
Expense log: emergency services, living expenses, mileage, even extra child care, or boarding your pets…ANYTHING that you have to pay for that relates to this loss.
City, County, and State Building Code requirements in writing.
Copy of your state Department of Insurance statutes on Bad Faith Claims, or Unfair Claims Practices. (See the book Appendix for a list of all 50 states’ insurance departments, and their phone numbers. You can also find this free information at my website, www.insurance-claim-secrets.com ).
Waiver of Lien forms (See Chapter Thirty, Settling Your Claim). These forms are also downloadable at the website.
Worker’s list. A list of everyone who works on your home, who they work for, and what work they’re doing. Taking their photo would be a great idea, also.
Professional reports, such as an Engineer report, Cause and Origin report, Fire or Police report, etc.
Copy of all estimates.
Copy of all repair contracts. NO WORK WITHOUT SIGNED CONTRACTS. Also, contractors occasionally find hidden damages that will require supplemental repair costs. YOU are responsible for these costs, even though the insurance company agrees to pay. The insurance company doesn’t own your house…you do. GET IT IN WRITING.
Copies of any advance payment checks you receive from the insurance company.
If you have a contractor, or ANYONE who works on your damaged property, get a copy of their insurance certificates that show their liability insurance is in effect. No insurance, no work. Period. You CANNOT afford to have a worker get hurt on your premises and file a claim against you for liability or medical expenses.
Keep a Journal
Buy a journal book, or just simply use a standard sized legal pad as your claims journal. This means that you should write down EVERYTHING that happens in your claim.
Write down every phone conversation: Date, time, phone number, who you talked to, what was said.
Write down every meeting: Date, time, length of meeting, people in attendance, what was discussed.
Write it down WHEN IT HAPPENS. Don’t rely on your memory a few days later. You’ll be sorry if you try that.
11. Meet the adjuster. (First, read Chapter Seven, Claims Adjusters.)
The following procedure is what a professional claims adjuster SHOULD DO at your first meeting:
Introduce himself and give you his business card.
Sit down with you FIRST and explain what he is about to do.
Find out from you if you’ve ever had a loss before.
READ YOUR POLICY WITH YOU, and answer all of your questions.
Explain in detail the claims process, and the steps he will be taking.
Explain to you, the insured, what your responsibilities are in the claims process.
Then, after all of that…..he should inspect your damage.
If your adjuster does NOT do all of the above, in basically that order…you must realize that you may have a problem right away.
Here’s another tip about adjusters. Most adjusters are likeable people, and try their best to get along and be pleasant. Occasionally, you’ll find an adjuster who is disagreeable, rude and sharp tongued. If you find that you don’t get along with the independent adjuster that has been assigned to your claim, call his supervisor and request that another adjuster be assigned to this claim. Make your request politely but firmly. You do not have to take abuse and poor treatment from an adjuster. If the claims supervisor won’t change the adjuster, call the insurance company and ask them to assign the claim to another adjusting company.
If you’re dealing with the insurance company’s staff adjuster, and getting treated badly, call his supervisor and firmly request another adjuster. If the supervisor doesn’t cooperate, go to his supervisor. Keep going up the ladder until you get what you want. If none of this works, call your State Department of Insurance and file a complaint.
Many times you can meet the adjuster at your location on the same day as the loss occurred. That’s the ideal situation. Some damages can be mitigated (made less severe) by the speed that cleanup begins. For example, you have an icemaker supply line that bursts while you are out, and the red oak wood floor in your dining room gets very wet. If you can get the water up off the floor, and drying equipment in the room quickly, the floor will likely not swell and buckle…and the floor can be saved. If you had to wait 1-2 days for the adjuster to arrive, the floor would likely have to be replaced at much higher cost.
At this first meeting with the adjuster, make requests for advance payments, if necessary. (See Chapter Nineteen, Advance Payments.) If you’ve had a major Contents loss, like fire, smoke or water damage, you’ll need to replace some of these items quickly. If you have had a loss which leaves you unable to live in your home temporarily, you’ll need money to pay for hotel rooms, or temporary housing, or a short term lease for a house or apartment (Additional Living Expense coverage). Insurance companies will make these types of advance payments to the insured when the advance is requested. They seldom offer an advance.
That's all for this first strategy. Watch for more crucial information on the other strategies in the Top Ten List!
For more information, go to: www.insurance-claim-secrets.com
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