Insurance Claims - How to Maximize Your Settlement

When filing an insurance claim, many people forgetpurchased the house they planned to stay in for
items. Others spend numerous months - yes, monthsmany years to follow. It's a beautiful house with a
- trying to remember what they own(ed). And quitetouch of charming local history and plenty of
a few find months after the claim is settled thatbreathing room for their four growing boys. As a
they didn't claim and will never recover thousands ofchild, his wife actually dreamed of owning the place!
dollars with of personal property.Two months later, they woke in a haze of smoke
So what can you do maximize your claim andwith alarms sounding. Though the family escaped
minimize the time it takes to file? The Nationalunharmed, an electrical fire left the basement
Association of Insurance Commissioners (NAIC)completely burned out while the rest of the home
suggests that you take an inventory of yourand personal belongings were affected by heat,
belongings. This should include taking photographs orsmoke and water.
a video of each room. The documentation will provideThey are responsible people who were fully insured.
your insurance company with proof of yourIn fact, most of their belongings were documented
belongings and help to process claims more quickly inon a written report and also videotaped.
the event of disaster. Remember to include itemsUnfortunately, the documentation and backups were
you rarely use (e.g., holiday decorations, sportstemporarily stored in their home due to the recent
equipment, tools, seasonal items, etc.).move.
To file claims more quickly, the NAIC suggests thatThe outcome of their insurance claim was somewhat
you keep sales receipts and/or canceled checks. Iunusual in that they recovered more than 90 cents
also suggest that your photos and written report areon the dollar (most victims state they recover
compiled room-by-room, as adjusters and insurancebetween 30% and 50%). But the claim required more
companies state that is the preferred format whenthan 5 hours of work per day, 7 days a week, for 16
filing a claim.months. The process left them, in his words, "burned
Without an inventory, could you remember what youout" as well!
own? Insurance adjusters state that people with anThis shows that even if you're fully insured, you
inventory can file their initial claim within 36-48 hoursmost likely are not aware of everything you must
of a disaster. Those without an inventory take fromconsider to properly issue a claim. Best advice:
4-12 months to complete the process. And becausephotograph your contents and have an accurate list.
they have documentation listing their belongings, theyIf you don't have the time or choose not to do it
are able to maximize their claims. Less is forgotten,yourself, use the insight and experience of a
and the photographs support ownership.professional. The cost is well worth the investment in
A fire victim's experience provides some insight ...peace of mind. You'll maximize your claim and
after 10 years of marriage, he and his wifeminimize the time it takes to complete the process.