These days, we seem to own plenty of home appliances that are supposed to reduce our workloads and make life easier and simpler. But with those work-saving appliances come some hidden risks that could cause losses that cost us our homes, our contents, and our peace of mind.
Here is a list of home appliances and hazards that you can easily prevent:
1. Dishwasher: Has an average life expectancy of 9 years. Make sure the door seals work properly to prevent water leaks. If it won’t drain properly, check the garbage disposal to see if it’s clear. Water leaks from dishwashers regularly cause water damage in kitchens. If the leak is sudden, you’re probably covered. If the leak keeps happening over time, you probably won’t be covered for loss.
2. Clothes washer: Has an average life expectancy of 10 years. Replace the rubber hoses with flexible stainless steel braided hoses to prevent hose bursts and big water claims. If a hose bursts, the water could spray the laundry room until someone finds it, causing a big water loss.
3. Clothes dryer (gas or electric): Has an average life expectancy of 10 years. Lint build-up inside dryers causes nearly 4,000 fires each year. Make sure your dryer hose vents correctly. Replace plastic vent hoses with metal. Clean the lint filter after every dryer load. Disconnect the dryer and hose twice a year and sweep out the lint under and inside the dryer cabinet. You’ll be shocked at how much lint you’ll find.
4. Toaster/toaster oven: Has an average life expectancy of 5 years. All of these little toasters have a trap door so you can clean them out. Crumbs dry out and become very flammable. Clean out the crumbs to prevent a fire.
5. Microwave: Has an average life expectancy of 8 years. Never use metal inside a microwave. It will start a fire. It will also damage or destroy the magnetron that generates the waves.
6. Gas Stove/Oven: Has an average life expectancy of 15 years. Got electronic burner lighters? If you turn on the burner, and it doesn’t light immediately, turn off the burner. Even three seconds of gas...unlit...can explode when lit. Let the gas dissipate for about 30 seconds before trying again. If you have to, dismantle the burner eye and clean it out. Also, make sure you clean up spills inside the oven which can generate smoke and start a fire. You’ve got a lot of open flame with a gas stove. Watch out for sleeves, dish towels and pot holders.
7. Electric stove: Has an average life expectancy of 13 years. Have a burner or oven element that malfunctions or burns out? Replace it right away. Also, make sure you clean up spills inside the oven which can generate smoke and start a fire.
8. Refrigerator/freezer: Has an average life expectancy of 15 years. This appliance regularly has an icemaker, which has a plastic water line that feeds it. These water lines burst frequently, and they will pump water out onto the floor until someone discovers it. Replace the plastic icemaker line with a copper line.
9. Garbage disposal: Has an average life expectancy of 15 years. If it gets blocked, go to the fusebox and turn off the breaker or fuse before trying to clear it. Don’t ever stick your hand down inside a garbage disposal. Replace the rubber drain line with a braided line.
10. Electrical extension cords: Not an appliance, but cause thousands of fires each year. Don’t use a frayed cord. Look at the amperage rating on the cord, and don’t plug in stuff that exceeds the rating. If you have a cord that you can’t find a rating on, throw it away. Don’t place a cord under a rug, carpet or under a piece of furniture. Check ALL of the cords in your home to make sure that there is no furniture leg resting on a cord. Feel cords in use to see if they are warm or hot. If they are, throw them away and get a heavier cord. Using power strips is safer than cords.
I recommend that if any appliance repairs will cost more than half of the price of a new appliance, replace it.
If you will take care to do these simple tips, you will drastically lessen the chances of having a disastrous home fire. But if you do have a home fire, you will need an expert to help you submit your claim. Never allow the insurance adjuster to handle your claim on your behalf. Their job is to minimize your claim. Your job is to collect every penny you are entitled to collect. See the conflict?
Go to www.ClaimSecrets.com for valuable claim strategies that will put thousands in your pockets.
Showing posts with label fire. Show all posts
Showing posts with label fire. Show all posts
Tuesday, February 2, 2010
Sunday, September 7, 2008
What is a CLUE Report, and Why Should You Care?
What's a CLUE Report, and why should you care? If you're buying or selling a property, you will care a lot.
You've searched for far too long, and you've finally found a house that you want to buy. You've fallen in love with this house and you're already dreaming of the ways you'll decorate it.
But, what if you found out that your dream house had suffered a major fire three years ago, and extensive repairs were required? Or what if you learned that the house was flooded and rebuilt? Would that change your opinion of your dream house? Not only that, would this new knowledge change the purchase price you would offer for the home? Could the damages cause an insurance company to charge you a higher premium for your homeowner's insurance?
Now, think about this situation. You live on a street of homes that are comparable in size and value to one another. Your house is one of four homes on your street for sale. All four are priced the same. However, one of the four homes on your street had a major fire and rebuild three years ago. Do you think that the value of the repaired home should be the same as yours?
That's why ChoiceTrust offers the C.L.U.E. Home Seller's Disclosure Report. "C.L.U.E." stands for Comprehensive Loss Underwriting Exchange, which is a database featuring loss information compiled by the insurance companies. A C.L.U.E. report provides a five-year history of losses that have been filed against insurance policies covering a given property. The report provides information including the dates and types of losses and the amounts paid for each loss.
It's a report that you purchase as the home seller. It can give prospective home buyers valuable information about losses associated with your home. Then the buyers can make an informed decision when buying your home. If the report shows prior claims, a buyer could ask for evidence that the damages were properly repaired.
A C.L.U.E. report that shows no losses can give you, the home seller, an advantage when your home is compared with similar properties.
Real Estate Agents: Ask the property seller for a C.L.U.E. Report! Furnishing loss information to a potential buyer that makes the home you are selling more attractive gives you a competitive advantage. When you order the C.L.U.E. Report at the time of listing, the smart seller and his/her smart agent are ready for buyers immediately.
Question: May I order a C.L.U.E. Report on a property I want to buy?
Answer: Sorry, you may not. Only property owners (business or individual) can access a consumer report like the C.L.U.E. Report.
Question: How may I obtain my own report?
Answer: Order from http://www.choicetrust.com, and you can view your report online immediately. The report only costs $19.50 per address. You can also order reports on properties that are not your primary residence, such as rental property or vacation homes.
If you are a home buyer you should require home sellers to provide a C.L.U.E. Report as a contingency to a purchase offer. Your best friend in your real estate purchase could be the C.L.U.E. Report.
P.S. I wrote a book that YOU need!
check out: http://www.insurance-claim-secrets.com
NUMBER ONE at Amazon.com in its category!
My blog is at: http://insurance-claim-secrets.blogspot.com/
Nominated for Georgia Author of the Year Award 2008
My philosophy: I give value first. I help other people. I strive
to be the best at what I love to do. I establish long-term
relationships with everyone. I have fun...
and I do that every day.
You've searched for far too long, and you've finally found a house that you want to buy. You've fallen in love with this house and you're already dreaming of the ways you'll decorate it.
But, what if you found out that your dream house had suffered a major fire three years ago, and extensive repairs were required? Or what if you learned that the house was flooded and rebuilt? Would that change your opinion of your dream house? Not only that, would this new knowledge change the purchase price you would offer for the home? Could the damages cause an insurance company to charge you a higher premium for your homeowner's insurance?
Now, think about this situation. You live on a street of homes that are comparable in size and value to one another. Your house is one of four homes on your street for sale. All four are priced the same. However, one of the four homes on your street had a major fire and rebuild three years ago. Do you think that the value of the repaired home should be the same as yours?
That's why ChoiceTrust offers the C.L.U.E. Home Seller's Disclosure Report. "C.L.U.E." stands for Comprehensive Loss Underwriting Exchange, which is a database featuring loss information compiled by the insurance companies. A C.L.U.E. report provides a five-year history of losses that have been filed against insurance policies covering a given property. The report provides information including the dates and types of losses and the amounts paid for each loss.
It's a report that you purchase as the home seller. It can give prospective home buyers valuable information about losses associated with your home. Then the buyers can make an informed decision when buying your home. If the report shows prior claims, a buyer could ask for evidence that the damages were properly repaired.
A C.L.U.E. report that shows no losses can give you, the home seller, an advantage when your home is compared with similar properties.
Real Estate Agents: Ask the property seller for a C.L.U.E. Report! Furnishing loss information to a potential buyer that makes the home you are selling more attractive gives you a competitive advantage. When you order the C.L.U.E. Report at the time of listing, the smart seller and his/her smart agent are ready for buyers immediately.
Question: May I order a C.L.U.E. Report on a property I want to buy?
Answer: Sorry, you may not. Only property owners (business or individual) can access a consumer report like the C.L.U.E. Report.
Question: How may I obtain my own report?
Answer: Order from http://www.choicetrust.com, and you can view your report online immediately. The report only costs $19.50 per address. You can also order reports on properties that are not your primary residence, such as rental property or vacation homes.
If you are a home buyer you should require home sellers to provide a C.L.U.E. Report as a contingency to a purchase offer. Your best friend in your real estate purchase could be the C.L.U.E. Report.
P.S. I wrote a book that YOU need!
check out: http://www.insurance-claim-secrets.com
NUMBER ONE at Amazon.com in its category!
My blog is at: http://insurance-claim-secrets.blogspot.com/
Nominated for Georgia Author of the Year Award 2008
My philosophy: I give value first. I help other people. I strive
to be the best at what I love to do. I establish long-term
relationships with everyone. I have fun...
and I do that every day.
Saturday, July 12, 2008
What Will Your Insurance Policy Pay If You Break a Compact Fluorescent Light Bulb?
Everybody's singing the praises of the new compact fluorescent light bulb (CFL). And for good reason...they save tons of electricity.
But what happens if one breaks inside your house or business?
My opinion is that most people will simply sweep up the mess and not give it much thought. But there is a BIG, dangerous component in a bulb called Mercury, and mercury is one of the most toxic substances known to man.
If you break a CFL bulb, you'll likely find that the proper cleanup could be very costly. And you'll likely find that there is NO COVERAGE in your property insurance policy. Most policies have environmental cleanup exclusions. Even if your home is damaged by a tornado, hurricane or fire, the broken bulbs could cause you to incur thousands of dollars in environmental cleanup costs that your insurance policy will EXCLUDE.
Because CFLs contain a small amount of mercury, the Environmental Protection Agency (EPA) recommends the following clean-up and disposal guidelines:(1)
1. Before Clean-up: Ventilate the Room
* Have people and pets leave the room, and don't let anyone walk through the breakage area on their way out.
* Open a window and leave the room for 15 minutes or more.
* Shut off the central forced-air heating/air conditioning system, if you have one.
2. Clean-Up Steps for Hard Surfaces
* Carefully scoop up glass fragments and powder using stiff paper or cardboard and place them in a glass jar with metal lid (such as a canning jar) or in a sealed plastic bag.
* Use sticky tape, such as duct tape, to pick up any remaining small glass fragments and powder.
* Wipe the area clean with damp paper towels or disposable wet wipes and place them in the glass jar or plastic bag.
* Do not use a vacuum or broom to clean up the broken bulb on hard surfaces.
3. Clean-up Steps for Carpeting or Rug:
* Carefully pick up glass fragments and place them in a glass jar with metal lid (such as a canning jar) or in a sealed plastic bag.
* Use sticky tape, such as duct tape, to pick up any remaining small glass fragments and powder.
* If vacuuming is needed after all visible materials are removed, vacuum the area where the bulb was broken.
* Remove the vacuum bag (or empty and wipe the canister), and put the bag or vacuum debris in a sealed plastic bag.
4. Clean-up Steps for Clothing, Bedding, etc.:
* If clothing or bedding materials come in direct contact with broken glass or mercury-containing powder from inside the bulb that may stick to the fabric, the clothing or bedding should be discarded. Do not wash such clothing or bedding because mercury fragments in the clothing may contaminate the machine and/or pollute sewage.
* You can, however, wash clothing or other materials that have been exposed to the mercury vapor from a broken CFL, such as the clothing you happened to be wearing when you cleaned up the broken CFL, as long as that clothing has not come into direct contact with the materials from the broken bulb.
* If shoes come into direct contact with broken glass or mercury-containing powder from the bulb, wipe them off with damp paper towels or disposable wet wipes. Place the towels or wipes in a glass jar or plastic bag for disposal.
5. Disposal of Clean-up Materials
* Immediately place all cleanup materials outdoors in a trash container or protected area for the next normal trash pickup.
* Wash your hands after disposing of the jars or plastic bags containing clean-up materials.
* Check with your local or state government about disposal requirements in your specific area. Some states prohibit such trash disposal and require that broken and unbroken mercury-containing bulbs be taken to a local recycling center.
6. Future Cleaning of Carpeting or Rug: Ventilate the Room During and After Vacuuming
* The next several times you vacuum, shut off the central forced-air heating/air conditioning system and open a window prior to vacuuming.
* Keep the central heating/air conditioning system shut off and the window open for at least 15 minutes after vacuuming is completed.
Man, they are serious, aren't they?
(1) Environmental Protection Agency, www.energystar.com
But what happens if one breaks inside your house or business?
My opinion is that most people will simply sweep up the mess and not give it much thought. But there is a BIG, dangerous component in a bulb called Mercury, and mercury is one of the most toxic substances known to man.
If you break a CFL bulb, you'll likely find that the proper cleanup could be very costly. And you'll likely find that there is NO COVERAGE in your property insurance policy. Most policies have environmental cleanup exclusions. Even if your home is damaged by a tornado, hurricane or fire, the broken bulbs could cause you to incur thousands of dollars in environmental cleanup costs that your insurance policy will EXCLUDE.
Because CFLs contain a small amount of mercury, the Environmental Protection Agency (EPA) recommends the following clean-up and disposal guidelines:(1)
1. Before Clean-up: Ventilate the Room
* Have people and pets leave the room, and don't let anyone walk through the breakage area on their way out.
* Open a window and leave the room for 15 minutes or more.
* Shut off the central forced-air heating/air conditioning system, if you have one.
2. Clean-Up Steps for Hard Surfaces
* Carefully scoop up glass fragments and powder using stiff paper or cardboard and place them in a glass jar with metal lid (such as a canning jar) or in a sealed plastic bag.
* Use sticky tape, such as duct tape, to pick up any remaining small glass fragments and powder.
* Wipe the area clean with damp paper towels or disposable wet wipes and place them in the glass jar or plastic bag.
* Do not use a vacuum or broom to clean up the broken bulb on hard surfaces.
3. Clean-up Steps for Carpeting or Rug:
* Carefully pick up glass fragments and place them in a glass jar with metal lid (such as a canning jar) or in a sealed plastic bag.
* Use sticky tape, such as duct tape, to pick up any remaining small glass fragments and powder.
* If vacuuming is needed after all visible materials are removed, vacuum the area where the bulb was broken.
* Remove the vacuum bag (or empty and wipe the canister), and put the bag or vacuum debris in a sealed plastic bag.
4. Clean-up Steps for Clothing, Bedding, etc.:
* If clothing or bedding materials come in direct contact with broken glass or mercury-containing powder from inside the bulb that may stick to the fabric, the clothing or bedding should be discarded. Do not wash such clothing or bedding because mercury fragments in the clothing may contaminate the machine and/or pollute sewage.
* You can, however, wash clothing or other materials that have been exposed to the mercury vapor from a broken CFL, such as the clothing you happened to be wearing when you cleaned up the broken CFL, as long as that clothing has not come into direct contact with the materials from the broken bulb.
* If shoes come into direct contact with broken glass or mercury-containing powder from the bulb, wipe them off with damp paper towels or disposable wet wipes. Place the towels or wipes in a glass jar or plastic bag for disposal.
5. Disposal of Clean-up Materials
* Immediately place all cleanup materials outdoors in a trash container or protected area for the next normal trash pickup.
* Wash your hands after disposing of the jars or plastic bags containing clean-up materials.
* Check with your local or state government about disposal requirements in your specific area. Some states prohibit such trash disposal and require that broken and unbroken mercury-containing bulbs be taken to a local recycling center.
6. Future Cleaning of Carpeting or Rug: Ventilate the Room During and After Vacuuming
* The next several times you vacuum, shut off the central forced-air heating/air conditioning system and open a window prior to vacuuming.
* Keep the central heating/air conditioning system shut off and the window open for at least 15 minutes after vacuuming is completed.
Man, they are serious, aren't they?
(1) Environmental Protection Agency, www.energystar.com
Saturday, July 5, 2008
Wildfire Victims and Their Contents Claims!
CONTENTS, or UNSCHEDULED PERSONAL PROPERTY
Picture a homeowner couple in Southern California. They had a home in a wooded area, and wildfires began. The local Fire Department came to their home and required that they evacuate because the winds shifted and the fire was coming straight for their home. They gather up their most valuable possessions and leave their home. Three days later, they return to find a smouldering pile of ashes...a total loss.
This article is about the Contents portion of the claim. The insurance company will not just write you a check for the policy limits in your Homeowners policy. You're going to have to prove your loss.
The insurance company adjuster MIGHT give you an inventory form to fill out. They might not. But, they ARE going to expect you to submit a complete, accurate inventory list.
I hope that you videotaped all of the interior of your home PRIOR to the loss, and have secured that videotape in a safe deposit box off-site. Then, you could view the tape and write out the inventory.
But let's just assume that all you have is ashes. What to do next?
Get a copy of a JC Penney catalog. Better, 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 childrens' rooms at night when the 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.
Write down EVERYTHING. Your inventory list will likely take dozens of pages. Remember to show (1) replacement cost, (2) age of the item, (3) Price paid.
When I say "write down EVERYTHING," I mean it. Thumbtacks, Q tips, makeup, bobby pins, tools, extension cords, light bulbs....if you owned it, record it.
You can be certain that the personal property you DO NOT INVENTORY will NOT be paid for.
Next article will discuss what happens next, when the adjuster begins to apply depreciation to your Contents Inventory. How can you win this fight?
Picture a homeowner couple in Southern California. They had a home in a wooded area, and wildfires began. The local Fire Department came to their home and required that they evacuate because the winds shifted and the fire was coming straight for their home. They gather up their most valuable possessions and leave their home. Three days later, they return to find a smouldering pile of ashes...a total loss.
This article is about the Contents portion of the claim. The insurance company will not just write you a check for the policy limits in your Homeowners policy. You're going to have to prove your loss.
The insurance company adjuster MIGHT give you an inventory form to fill out. They might not. But, they ARE going to expect you to submit a complete, accurate inventory list.
I hope that you videotaped all of the interior of your home PRIOR to the loss, and have secured that videotape in a safe deposit box off-site. Then, you could view the tape and write out the inventory.
But let's just assume that all you have is ashes. What to do next?
Get a copy of a JC Penney catalog. Better, 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 childrens' rooms at night when the 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.
Write down EVERYTHING. Your inventory list will likely take dozens of pages. Remember to show (1) replacement cost, (2) age of the item, (3) Price paid.
When I say "write down EVERYTHING," I mean it. Thumbtacks, Q tips, makeup, bobby pins, tools, extension cords, light bulbs....if you owned it, record it.
You can be certain that the personal property you DO NOT INVENTORY will NOT be paid for.
Next article will discuss what happens next, when the adjuster begins to apply depreciation to your Contents Inventory. How can you win this fight?
What do you do if wildfires force you to evacuate from your home or business?
Additional Living Expense (ALE) Claims
HERE'S A SUPER IMPORTANT A.L.E. TIP!!
Over the past few years, wildfires in the Western United States have been horrendous, displacing tens of thousands of people from their homes and businesses, and causing billions of dollars in fire damages. But what happens when the local authorities force you to evaluate when fire gets too close?
There's coverage in the ALE portion of the policy! I promise that the insurance companies are not running radio and TV ads, alerting their policyholders about THIS coverage!
Here's a exact quote from the ISO homeowners policy:
"If a civil authority prohibits you from use of the "residence premises" as a result of direct damage to neighboring premises by a Peril Insured Against in this policy, We cover the Additional Living Expense and Fair Rental Value loss.....for no more than two weeks." (1)
In a Homeowner insurance policy, you'll usually see ALE coverage listed as Coverage D. Sometimes, it's called Loss of Use.
Additional Living Expense (ALE) coverage is just what you might think it is. When you have a covered loss that makes the place you reside unfit to live in, and it forces you to spend more on normal operating costs than you usually spend, ALE coverage pays.
Your policy probably reads just like the following: "Additional Living Expense, meaning any necessary increases in living expenses incurred by you so that your household can maintain its normal standard of living."
ALE covers things like:
a. Temporary housing, like in a hotel, an apartment or rental house. If you lived in a modest home, don't expect the insurance company to pay for the finest hotel room in town. But on the other hand, if you lived in an expensive home, you should EXPECT AND DEMAND that the insurance company pay for temporary accommodations of like kind and quality. Remember, if you had a mortgage on your home, you still have to pay the mortgage payment while the home is being repaired. Lots of times the loss is severe and the adjuster knows you'll be out of your home for weeks or months. The insurance company will save money if it places your family in an extended stay hotel, or in a short term apartment or house lease. In addition to saving money on rent, the insurance company can pay advances on Contents, and if you're in an apartment or house, you'll have a place to store your new contents, like furniture, clothing and kitchenware.
b. Laundry and dry cleaning. If you had laundry facilities at your residence, it will cost you more to get your clothes cleaned. The extra cost you incur is covered.
c. Meals. This is where many people misunderstand their claim. Certainly, if you cannot buy and prepare your own meals, you'll incur higher food prices. But insurance companies won't usually pay for costly steak dinners and high bar tabs. You're going to have to be able to explain your meal purchases, so don't go overboard. You'll have to make an accurate estimate of what your family normally spends per month on food. That can certainly include restaurant meals that you normally buy. Just remember that ALE is paying for items OVER your normal standard of living. Keep METICULOUS RECORDS of your food purchases. If the insurance company places you into a temporary apartment or efficiency hotel that has a kitchen, they'll stop paying for most extra meals.
d. Boarding costs for pets. Someone has to take care of your pets while you cannot live in your home. This is covered.
e. Increased transportation costs for all your vehicles. Do you have to drive your children to school, since your temporary accommodations are not in the old school district? That's covered. Do you have to drive further to and from work? Covered. Do you have further to drive to doctors, dentists, ballet classes, soccer games, etc.? The increased cost is covered. Did I say KEEP METICULOUS RECORDS? Most office supply stores have automobile expense logbooks for sale for a dollar or two. Stop by and pick up one for each car you drive, and write down EVERY TRIP. Keep all receipts for every penny you spend on transportation.
f. Furniture rental for a temporary residence. You have to have chairs and beds and other stuff...even pots and pans, dishes and temporary electronics. However, don't try to get them to pay for a 60" plasma flat screen TV rental if you had a 27" color TV at home.
g. Relocation and storage expenses. Perhaps some of your personal property was not damaged. Perhaps some was damaged, but the restoration contractor is cleaning and repairing it. Once it's cleaned and repaired, it's got to be stored somewhere until you can move back home. Covered.
h. Costs of telephone or utility installation at your temporary residence. This would include deposits that the utility companies might require. Don't forget garbage pickup at your temporary place. It's all covered. Even cable TV hookups would be covered if you had cable at home prior to the loss.
What if you stayed with relatives, and did not incur increased rent, and many of the other expenses shown above? Another scenario is that you just simply do not want to go through the process of documenting all of your extra expenses. The policy gives you the option to be paid "Fair Rental Value", which is: "the fair rental value of that part of the 'residence premises' where you reside less any expenses that do not continue while the premises is not fit to live in."
How much would your house rent for? That's the question.
You'll need to make a comparison between your residence, like it was before the loss, and properties in the neighborhood that are comparable to yours. A good real estate broker can be very helpful in substantiating these comparable properties and the monthly costs of them. Once you determine the Fair Rental Value of your home, you must subtract expenses that do not continue during the restoration period, such as some utilities, garbage pickup, landscaping services or maid services.
Some insurance companies will still pay for extra transportation costs, relocation expenses, storage of contents and utilities in addition to Fair Rental Value. Some will make you choose either ALE or Fair Rental Value. Find out from your insurance company what they are going to do, and make your decision.
Go to the website at: www.insurance-claim-secrets.com and find the Resources tab. Download the ALE worksheet and make as many copies as you need. Use it as your guide to record and submit your ALE claim.
If your records and receipts were damaged in your loss, contact your utility companies, credit card companies and other creditors and get copies of the last couple months' bills. You'll need these records to confirm your normal operating expenses.
Finally: Don't be surprised if your adjuster or claims examiner tries to disqualify some of your legitimate expenses. Don't just accept what the adjuster says. If it's a truly legitimate expense, FIGHT FOR IT!! Go over the adjuster's head to his supervisor. Keep fighting. Send them a letter that insists that they give you written denial of any legitimate expenses. Once you have that in your possession, call your state Department of Insurance (DOI) and register a written complaint. You never know what impact a DOI complaint will have on your claim.
(1) Insurance Service Office, Inc., "Policy Kit for Insurance Professionals," 1990.
HERE'S A SUPER IMPORTANT A.L.E. TIP!!
Over the past few years, wildfires in the Western United States have been horrendous, displacing tens of thousands of people from their homes and businesses, and causing billions of dollars in fire damages. But what happens when the local authorities force you to evaluate when fire gets too close?
There's coverage in the ALE portion of the policy! I promise that the insurance companies are not running radio and TV ads, alerting their policyholders about THIS coverage!
Here's a exact quote from the ISO homeowners policy:
"If a civil authority prohibits you from use of the "residence premises" as a result of direct damage to neighboring premises by a Peril Insured Against in this policy, We cover the Additional Living Expense and Fair Rental Value loss.....for no more than two weeks." (1)
In a Homeowner insurance policy, you'll usually see ALE coverage listed as Coverage D. Sometimes, it's called Loss of Use.
Additional Living Expense (ALE) coverage is just what you might think it is. When you have a covered loss that makes the place you reside unfit to live in, and it forces you to spend more on normal operating costs than you usually spend, ALE coverage pays.
Your policy probably reads just like the following: "Additional Living Expense, meaning any necessary increases in living expenses incurred by you so that your household can maintain its normal standard of living."
ALE covers things like:
a. Temporary housing, like in a hotel, an apartment or rental house. If you lived in a modest home, don't expect the insurance company to pay for the finest hotel room in town. But on the other hand, if you lived in an expensive home, you should EXPECT AND DEMAND that the insurance company pay for temporary accommodations of like kind and quality. Remember, if you had a mortgage on your home, you still have to pay the mortgage payment while the home is being repaired. Lots of times the loss is severe and the adjuster knows you'll be out of your home for weeks or months. The insurance company will save money if it places your family in an extended stay hotel, or in a short term apartment or house lease. In addition to saving money on rent, the insurance company can pay advances on Contents, and if you're in an apartment or house, you'll have a place to store your new contents, like furniture, clothing and kitchenware.
b. Laundry and dry cleaning. If you had laundry facilities at your residence, it will cost you more to get your clothes cleaned. The extra cost you incur is covered.
c. Meals. This is where many people misunderstand their claim. Certainly, if you cannot buy and prepare your own meals, you'll incur higher food prices. But insurance companies won't usually pay for costly steak dinners and high bar tabs. You're going to have to be able to explain your meal purchases, so don't go overboard. You'll have to make an accurate estimate of what your family normally spends per month on food. That can certainly include restaurant meals that you normally buy. Just remember that ALE is paying for items OVER your normal standard of living. Keep METICULOUS RECORDS of your food purchases. If the insurance company places you into a temporary apartment or efficiency hotel that has a kitchen, they'll stop paying for most extra meals.
d. Boarding costs for pets. Someone has to take care of your pets while you cannot live in your home. This is covered.
e. Increased transportation costs for all your vehicles. Do you have to drive your children to school, since your temporary accommodations are not in the old school district? That's covered. Do you have to drive further to and from work? Covered. Do you have further to drive to doctors, dentists, ballet classes, soccer games, etc.? The increased cost is covered. Did I say KEEP METICULOUS RECORDS? Most office supply stores have automobile expense logbooks for sale for a dollar or two. Stop by and pick up one for each car you drive, and write down EVERY TRIP. Keep all receipts for every penny you spend on transportation.
f. Furniture rental for a temporary residence. You have to have chairs and beds and other stuff...even pots and pans, dishes and temporary electronics. However, don't try to get them to pay for a 60" plasma flat screen TV rental if you had a 27" color TV at home.
g. Relocation and storage expenses. Perhaps some of your personal property was not damaged. Perhaps some was damaged, but the restoration contractor is cleaning and repairing it. Once it's cleaned and repaired, it's got to be stored somewhere until you can move back home. Covered.
h. Costs of telephone or utility installation at your temporary residence. This would include deposits that the utility companies might require. Don't forget garbage pickup at your temporary place. It's all covered. Even cable TV hookups would be covered if you had cable at home prior to the loss.
What if you stayed with relatives, and did not incur increased rent, and many of the other expenses shown above? Another scenario is that you just simply do not want to go through the process of documenting all of your extra expenses. The policy gives you the option to be paid "Fair Rental Value", which is: "the fair rental value of that part of the 'residence premises' where you reside less any expenses that do not continue while the premises is not fit to live in."
How much would your house rent for? That's the question.
You'll need to make a comparison between your residence, like it was before the loss, and properties in the neighborhood that are comparable to yours. A good real estate broker can be very helpful in substantiating these comparable properties and the monthly costs of them. Once you determine the Fair Rental Value of your home, you must subtract expenses that do not continue during the restoration period, such as some utilities, garbage pickup, landscaping services or maid services.
Some insurance companies will still pay for extra transportation costs, relocation expenses, storage of contents and utilities in addition to Fair Rental Value. Some will make you choose either ALE or Fair Rental Value. Find out from your insurance company what they are going to do, and make your decision.
Go to the website at: www.insurance-claim-secrets.com and find the Resources tab. Download the ALE worksheet and make as many copies as you need. Use it as your guide to record and submit your ALE claim.
If your records and receipts were damaged in your loss, contact your utility companies, credit card companies and other creditors and get copies of the last couple months' bills. You'll need these records to confirm your normal operating expenses.
Finally: Don't be surprised if your adjuster or claims examiner tries to disqualify some of your legitimate expenses. Don't just accept what the adjuster says. If it's a truly legitimate expense, FIGHT FOR IT!! Go over the adjuster's head to his supervisor. Keep fighting. Send them a letter that insists that they give you written denial of any legitimate expenses. Once you have that in your possession, call your state Department of Insurance (DOI) and register a written complaint. You never know what impact a DOI complaint will have on your claim.
(1) Insurance Service Office, Inc., "Policy Kit for Insurance Professionals," 1990.
Wildfire victims will lose tens of millions without this information!
The Southern California wildfires are causing the largest population evacuation in California
You can win the insurance game when you have the right tools!!
I spent the last 15 years of my 34-year insurance career in the claims adjusting side of the business. I became increasingly sickened by the ways that insurance companies minimized, shrunk, depreciated and flat-out denied claims that they knew were legitimate claims. So, I wrote a book showing consumers how to take control AWAY from the insurance companies. I know ALL the tricks, and I reveal them in my book.
The “devil” of the claim is in the details of the claims PROCESS, and the insurance companies hardly EVER explain the process. If they did, it would cost them millions more. Insurance companies do whatever they can to control the CLAIMS PROCESS. But, if you learn the CLAIMS PROCESS from me, you'll be able to take control of the process away from the insurance companies, and add hundreds or even thousands more dollars to your claim settlements!
- For the hundreds of thousands displaced from their homes, there is coverage in the homeowners or renters insurance policy for living expenses while you were displaced. In that coverage, there is a whole list of eligible expenses that you don’t know about and it’s not listed in the policy. The insurance companies will likely not tell you this, but I’ll tell you.
- How will you reconstruct your inventory of personal property? I’ll show you how.
- The insurance company will depreciate your dwelling and personal property, even if you have replacement cost coverage. Let me tell you how to beat this process.
- Are you underinsured? If you don’t FIGHT THIS PROCESS, the insurance company will determine how much your dwelling is worth, and if you have enough insurance. If THEY say you’re underinsured, they’ll hit you with a penalty. I can show you how to fight and get the correct valuation on your property.
You can win the insurance game when you have the right tools!!
Saturday, June 14, 2008
Top Ten List #2: Notify the Insurance Company
"Notify The Insurance Company." Seems sort of obvious, doesn’t it? But, there are different ways to notify the company that you’ve had a loss. And when you notify the insurance company can make a big difference in how your claim is handled.
This is an excerpt from the book "Insurance Claim Secrets REVEALED!"
The first place to look for information is on your policy. Many policies will have a telephone number listed for reporting a claim. However, I’ve seen policies that require the policyholder to notify the company in writing. So, make sure that the method of reporting your claim is acceptable to the insurance company. Likely, your agent has his name and telephone number on the policy. If so, call him and report the loss also.
Sometimes, an agent will have settlement authority to handle small losses, such as homeowner’s losses under $2,000.00. In that kind of instance, the agent could handle the claim for you. I’ve found this situation to be rare, though. Occasionally, captive agents (agents that work for only one company, like State Farm or Allstate) will have a small amount of settlement authority.
The first thing you should remember is that the agent is licensed by the Department of Insurance in his state to be an agent. There is a separate license for claims adjusters. It's actually a violation of insurance regulations for an agent to do claims adjusting. It’s not his job to handle your claim, but to assist you in buying the coverage that’s right for you. Agents can be very helpful by making calls on your behalf if you’re having problems in your claim. They can be helpful in finding out key names and phone numbers for insurance company personnel that are handling your claim. If the agent has a large number of policyholders with that company, and his clientele represents a large amount of premium to that insurance company, it can be very helpful to have the agent call on your behalf when you’re having problems.
After all, it’s all about customer service, and keeping the promises made in the insurance policy.
Sometimes, the agent or an office secretary/customer service representative will fill out a claim form (called an ACORD form), and submit the claim form to the insurance company on your behalf. In this age of the Internet, frequently the claim form is electronic, and the agent will submit the electronic form by computer.
If the agent notifies the company on your behalf, and uses some type of form, ask the agent to send you a copy of the completed form. Then, you’ll be certain that the claim was submitted, and the date the claim was submitted.
Many times, however, the agent will have to refer you to the claims department of the insurance company. Your policy may have a telephone number for the claims department listed on the policy, and instructions how to make a claim.
Your policy requires you to notify the insurance company “in a timely manner” after you’ve had a claim. What is timely? It varies policy to policy. But each state has statutes of limitation that limit the amount of time after a claim occurrence that a claim can be made. Check with your state’s Department of Insurance to determine the statute of limitation where you live…or where the loss occurred. You’ll find a list of all of the Insurance Departments of all 50 U.S. states and their phone numbers in the Appendix, and at the website at: www.insurance-claim-secrets.com .
For example: you live in Minnesota, and own a retirement home in Florida. The Florida house gets hit by a hurricane. The statutes for Florida would apply.
WARNING: If you wait more than a month after your loss to notify the insurance company, they will be instantly suspicious. In those cases, you should expect to receive one of two forms from the insurance company before they begin their investigation of the loss:
Non-Waiver Agreement. This basically states that the insurance company is going to do a thorough investigation of the claim, but that their investigation does not commit them to pay the claim. It states that they do not waive any of their rights under the policy, and that the insured does not waive any of his rights by cooperating with the investigation. The insurance company wants the insured to sign this form. However, if the Insured refuses to sign the form, the insurance company will send him a….
Reservation of Rights letter. This states basically the same thing as a Non-Waiver Agreement, but the Insured does not have to sign it.
Don’t forget to write in your claim journal the date, time, who you spoke with, the phone number you called, and what was said when you reported your claim. That information could be very valuable later if you have problems with your claim.
Most likely, you’ll receive a claim number from the company when you report the loss. Write the claim number in your journal!!! Don’t expect the insurance company to quickly send you a form that has the claim number on it. Sometimes, it may be many days before the claims department sends you any correspondence, and you will likely need to speak with them before then.
WARNING: What about a situation in which someone else is at fault, and you’re making a claim against the other person’s insurance company? This could happen in an auto accident, or if someone causes damage to your house, or your contents. EVEN IN THIS SITUATION, you must notify your own insurance company that you’re involved in a claim.
The reason is that third party claims don’t always turn out well for you, the claimant. Sometimes, the other person’s insurance company denies liability or denies coverage. Sometimes, the other person’s insurance company drags the process out. Sometimes, the other person’s insurance company makes a settlement offer far below the fair value of the claim. Months may pass, and you have suffered a financial loss that is not getting paid.
What if you, or someone in your family, is injured in the claim…and the other guy’s insurance company won’t accept liability?
Those things might occur weeks or months after a loss. In many cases, you can short-cut that process and make a claim against your own insurance policy to repair the damages. Then your insurance company will do something called “Subrogation.” That is, they will pay your claim, and then contact the other person’s insurance company and demand reimbursement, including your deductible.
So, if you don’t report your claim right away, the policy might allow that insurance company to deny your claim based upon late reporting.
Besides, your policy REQUIRES you to notify the insurance company “promptly” after you have a loss of covered property. That requirement is there no matter who is at fault for the damages.
Don’t get caught in this technicality! Don’t lose your right to collect what you deserve.
Copyright 2008, by Russell Longcore. All rights reserved.
This is an excerpt from the book "Insurance Claim Secrets REVEALED!"
The first place to look for information is on your policy. Many policies will have a telephone number listed for reporting a claim. However, I’ve seen policies that require the policyholder to notify the company in writing. So, make sure that the method of reporting your claim is acceptable to the insurance company. Likely, your agent has his name and telephone number on the policy. If so, call him and report the loss also.
Sometimes, an agent will have settlement authority to handle small losses, such as homeowner’s losses under $2,000.00. In that kind of instance, the agent could handle the claim for you. I’ve found this situation to be rare, though. Occasionally, captive agents (agents that work for only one company, like State Farm or Allstate) will have a small amount of settlement authority.
The first thing you should remember is that the agent is licensed by the Department of Insurance in his state to be an agent. There is a separate license for claims adjusters. It's actually a violation of insurance regulations for an agent to do claims adjusting. It’s not his job to handle your claim, but to assist you in buying the coverage that’s right for you. Agents can be very helpful by making calls on your behalf if you’re having problems in your claim. They can be helpful in finding out key names and phone numbers for insurance company personnel that are handling your claim. If the agent has a large number of policyholders with that company, and his clientele represents a large amount of premium to that insurance company, it can be very helpful to have the agent call on your behalf when you’re having problems.
After all, it’s all about customer service, and keeping the promises made in the insurance policy.
Sometimes, the agent or an office secretary/customer service representative will fill out a claim form (called an ACORD form), and submit the claim form to the insurance company on your behalf. In this age of the Internet, frequently the claim form is electronic, and the agent will submit the electronic form by computer.
If the agent notifies the company on your behalf, and uses some type of form, ask the agent to send you a copy of the completed form. Then, you’ll be certain that the claim was submitted, and the date the claim was submitted.
Many times, however, the agent will have to refer you to the claims department of the insurance company. Your policy may have a telephone number for the claims department listed on the policy, and instructions how to make a claim.
Your policy requires you to notify the insurance company “in a timely manner” after you’ve had a claim. What is timely? It varies policy to policy. But each state has statutes of limitation that limit the amount of time after a claim occurrence that a claim can be made. Check with your state’s Department of Insurance to determine the statute of limitation where you live…or where the loss occurred. You’ll find a list of all of the Insurance Departments of all 50 U.S. states and their phone numbers in the Appendix, and at the website at: www.insurance-claim-secrets.com .
For example: you live in Minnesota, and own a retirement home in Florida. The Florida house gets hit by a hurricane. The statutes for Florida would apply.
WARNING: If you wait more than a month after your loss to notify the insurance company, they will be instantly suspicious. In those cases, you should expect to receive one of two forms from the insurance company before they begin their investigation of the loss:
Non-Waiver Agreement. This basically states that the insurance company is going to do a thorough investigation of the claim, but that their investigation does not commit them to pay the claim. It states that they do not waive any of their rights under the policy, and that the insured does not waive any of his rights by cooperating with the investigation. The insurance company wants the insured to sign this form. However, if the Insured refuses to sign the form, the insurance company will send him a….
Reservation of Rights letter. This states basically the same thing as a Non-Waiver Agreement, but the Insured does not have to sign it.
Don’t forget to write in your claim journal the date, time, who you spoke with, the phone number you called, and what was said when you reported your claim. That information could be very valuable later if you have problems with your claim.
Most likely, you’ll receive a claim number from the company when you report the loss. Write the claim number in your journal!!! Don’t expect the insurance company to quickly send you a form that has the claim number on it. Sometimes, it may be many days before the claims department sends you any correspondence, and you will likely need to speak with them before then.
WARNING: What about a situation in which someone else is at fault, and you’re making a claim against the other person’s insurance company? This could happen in an auto accident, or if someone causes damage to your house, or your contents. EVEN IN THIS SITUATION, you must notify your own insurance company that you’re involved in a claim.
The reason is that third party claims don’t always turn out well for you, the claimant. Sometimes, the other person’s insurance company denies liability or denies coverage. Sometimes, the other person’s insurance company drags the process out. Sometimes, the other person’s insurance company makes a settlement offer far below the fair value of the claim. Months may pass, and you have suffered a financial loss that is not getting paid.
What if you, or someone in your family, is injured in the claim…and the other guy’s insurance company won’t accept liability?
Those things might occur weeks or months after a loss. In many cases, you can short-cut that process and make a claim against your own insurance policy to repair the damages. Then your insurance company will do something called “Subrogation.” That is, they will pay your claim, and then contact the other person’s insurance company and demand reimbursement, including your deductible.
So, if you don’t report your claim right away, the policy might allow that insurance company to deny your claim based upon late reporting.
Besides, your policy REQUIRES you to notify the insurance company “promptly” after you have a loss of covered property. That requirement is there no matter who is at fault for the damages.
Don’t get caught in this technicality! Don’t lose your right to collect what you deserve.
Copyright 2008, by Russell Longcore. All rights reserved.
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