| Insurance claim advance payments are not widely | | | | The insurance company could easily issue an initial |
| known by people who file claims. Often, when an | | | | advance payment of $25,000 to $35,000 for |
| insured has a loss of significant size, such as a flood, | | | | Contents and ALE, and $40,000 to $50,000 for the |
| tornado, wildfire, hurricane loss or a big water | | | | Dwelling loss. |
| damage loss, an advance payment of a portion of | | | | So, what do you do if your Contents are damaged |
| the anticipated settlement is issued by the insurance | | | | and you need the most basic things, like a change of |
| company. This situation also happens regularly when a | | | | clothes and shoes? What if you need to have a |
| business has a loss and needs money up front. | | | | contractor secure the building and put tarps on the |
| It is a customary and widely accepted practice for | | | | roof to keep further rain out of the building? Most |
| the insurance company to issue an advance payment | | | | people do not have tens of thousands of dollars just |
| in this type of instance. Be aware that there's nothing | | | | lying in their bank accounts that could be used to |
| in the standard property insurance policy that deals | | | | begin repairs, or begin replacing personal property. |
| with advances. It is usually just a courtesy that the | | | | That's when the insurance company issues an |
| insurance company extends to their policyholder. | | | | advance. |
| However, they don't usually offer to do it. You have | | | | It's best to make your request in writing. Even if it's |
| to request the advance. | | | | just a hand-written letter, it's best if it's in writing. |
| Here's an example. Joe Smith's house is hit by | | | | Write or type your request, keep a copy for your |
| lightning, and a fire damages most of the house. Joe's | | | | records, and give the copy to your adjuster. It's also |
| policy has Building limits of $100,000, Contents limits | | | | a good idea to send a duplicate copy to the claims |
| of $50,000, ALE limits of $20,000. The house can be | | | | department of your insurance company. Send it by |
| repaired for $70,000, which is less than the policy | | | | overnight courier or certified mail. NEVER rely on the |
| limits. However, the adjuster expects that the | | | | adjuster to ask for an advance on your behalf. He |
| Contents loss will exceed the policy limits of $50,000, | | | | might get delayed with other work and it could be |
| and the ALE loss will be $15,000. The adjuster sends | | | | days before he asks. DO IT YOURSELF. |
| in his first report to the insurance company, and tells | | | | Take control of your claim, my friend! Make an |
| them to expect the loss to be approximately | | | | EARLY request in the claims process for your |
| $135,000 on these three parts of coverage. | | | | advance payment! |