How to Get Paid on Your Insurance Claim

How to Get Paid on Your Insurance Claim

Thousands of insurance claims for water damages are filed each year. Having paid out $450 billion in claims in the last decade, insurers are looking for ways to limit their losses by denying claims. According to David Barrack, executive director at the National Association of Public Insurance Adjusters, insurers have "gone from 'good hands' to boxing gloves."

Interesting Insurance Claims Statistics

Almost 40 percent of all homeowners have said that they have experienced loss from water damage.

About 93 percent of all water damage can be prevented.

Water damage is the second most frequently filed insurance claim in the United States.

250 gallons of water is released a day due to a 1/8-inch crack in a pipe.

About 20 percent of all insurance claims related to water damage of some kind.

Billions of dollars in property losses are spent each year as a direct result of water damages.

Steps to Make Sure You Get Paid

1. Document Your Holdings: Technology has made this simple. Do a walk through of your home with a smartphone or tablet and take pictures or a video of everything you own. Document the condition of furniture, electronics, appliances, everything of value. Open drawers and closets to show what is in them as well as the overall condition of your holdings. Then email the visual evidence to yourself so that you have a record.
2. Keep Records of Previous Repairs: By retaining receipts you can prove that you have taken steps to keep your home in tip top shape. Photograph those new windows or that new roof. Insurers try to deny claims by saying that you haven't been keeping the property maintained. Also, take photos of these receipts in case you lose the originals in a disaster.
3. If Disaster Strikes, Move Fast: Gather information as quickly and completely as possible. Uncover and document the entire extent of any damage. Make sure that you use the proper terminology when reporting your claim. Say the wrong thing and your claim may be denied. Don't start off on the wrong foot.
4. Prevent Further Damage: Every insurance policy requires that you, the homeowner, take appropriate steps to limit the damage. This means boarding up broken windows, getting water removed and dried up, anything action that will stop the damage from continuing to get worse.
5. Get Help: Consider hiring a public adjuster if the claim is large or complex. Public adjusters work for the policyholder, not the insurance company. Most states have a Department of Insurance to assist policyholders if problems with coverages arise. Talk to an attorney. Many times, when you prove the validity of your claim, the courts will order the insurer to pay all attorney fees.
6. Never Take "No" for No: We always tell people that "No" really means "Not Yet". If 100 people are told "no", only 10 will fight on. Be one of the 10% that gets everything they deserve.