Common Mistakes Homeowners Make During the Claim Process
Buying a property is the largest expense these days. It is essential to protect the home with comprehensive homeowners insurance coverage. Significantly, it covers a variety of risks including structural damage to the house due to natural disasters and man-made factors. However, filing an insurance claim is challenging and stressful after a disastrous incident that caused extensive physical damage to the property. In such a scenario, homeowners should be vigilant while filing a claim process to settle the maximum claim benefits. Take a look at the following article to learn which common mistakes homeowners should avoid during the claim settlement.
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Delaying the Claim Process
Prompt action is crucial to make the claim process stronger. It helps you recover your losses for the structural damage as well as the house content inside the property. Otherwise, delays in the claim settlement escalate the risks of the claim settlement refusal or undervalued offers. Hence, the homeowners should contact their insurance company as soon as possible to report the incident. The early intervention of the company helps spot the signs of damages to initiate the claim process. It increases the chances of the maximum claim settlement.
Failing to Document the Damage Properly
Inadequate documentation of the damage through photos, videos, and written notes jeopardizes the claim process. It is essential to showcase the proof of the damage to the insurance company to negotiate the highest amount for the claim settlement, up to the policy’s limits. In the absence of sufficient documentation, the company pays a partial amount to compensate for the loss. Hence, compile a list of extensive evidence including clear and detailed photos or videos of the structural damage and lost or damaged personal belongings. You should also prepare an inventory list that should include the names of the damaged items, their actual worth, and the current value. Furthermore, include the emergency receipt in the documentation as it is a vital expense you make to prevent further damage.
Not Understanding Policy Coverage and Exclusions
Understand the significance of policy paper when buying an insurance plan. Rather than a piece of paper, it is a legal document that determines your destiny to restore the loss. Hence, it is vital to know the inclusions and exclusions of the policy to make a well-informed decision. Without a doubt, the insurance company provides comprehensive home insurance coverage. However, coverage benefits may or may not include compensation for the damage due to flooding and mold. This may vary from company to company. Hence, understand the nuances of the policy coverage to avoid the risk of not settling appropriate claims.
Making Temporary Repairs without Approval
As a homeowner, you should ensure temporary repairs to the property after the unfortunate incident. Otherwise, any delay in these repairs can cause further damage and escalate the risk of the claim denial. However, you should inform the insurance company about the emergency repairs so that you can smoothly process your claim settlement request. Or, it can lead to complications in the claim approval. This way, you get an idea of whether or not costly repairs you will make will be covered under the policy. Also, keep the emergency receipt carefully as it is essentially included in the documentation.
Providing Incomplete or Incorrect Information
Be very careful when providing information to the insurance company as it should be accurate and truthful. Any effort to furnish incomplete or incorrect information may encourage the company to reduce the amount or refuse the payout. The insurance company can make you complete the process from the start which may result in delaying the claim approval. Hence, provide essential information in the report carefully. It should include the date of loss, a detailed description of the incident, contact details, and the extent of damage.
Accepting the First Claim Settlement Offer
Though the first claim settlement offer proposed by the insurance company may entice you, it is not always the right option for you. Initially, the company would not like you to pay for the full cost of repairs or restoration to mitigate the impact. In such a scenario, homeowners should deal with the issue with patience and do a comprehensive evaluation of the damage. If necessary, contact a public adjuster who can accurately appraise the loss or damage caused to your property. Consider their second opinion and hire them to negotiate the maximum claim settlement. Remember, qualified public adjusters are the most knowledgeable and possess experience in settling complex claim processes that involve legal issues.
Not Keeping a Claims Diary
Keep a claims diary to document every communication so you can track the status of the process. Ensure to include specific instances with the insurance adjuster so that you can negotiate the highest claim when it becomes necessary. Also, if there arises any conflict or dispute, keep the diary handy to provide detailed information about the day. To make sure you settle the maximum claim, you should show extra vigilance in every step. Incorporate dates, times, names of the company’s delegates spoken to, and details discussed while describing the claim’s details.
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Conclusion
Understand the pitfalls like delaying the claim process, failing to document the damage, not understanding the coverage, etc. to make an informed decision. The more you are aware of, the more precautions you will take while filing the claim process. Remember, your proactive, organized, and informed approach can improve your chances of a smooth claim process. Hence, read the article carefully to keep yourself away from these mistakes which result in severe consequences. Always review your insurance policy and speak to the agent to ask wherever there is confusion. This way, you will always be prepared for the claim process to avoid pitfalls.
