Home Insurance Articles
Early Steps To Take To Ensure A Fair Homeowners Insurance Claim Payout
2010-02-08
Getting a fair homeowners insurance claim payout can start from the moment a policy is purchased. Often, homeowners will find themselves feeling trapped after a claim, when the home insurance company is asking questions they don't know the answers to, or wondering why parts of the policy are inaccurate. This can lead to minimal or no payouts for the insured. It is best to take all steps possible, as early as possible, to ensure that should a claim be filed, the maximum and correct payout can be received.
The first thing to do is to be upfront when purchasing homeowners insurance coverage. Be accurate about where the nearest police station is, the condition of the neighborhood, and the construction details of the home. These are minor points, but can become big issues if the home is robbed or becomes structurally unsound. As well, make sure that as the term of the policy progresses, any changes in the home are updated accordingly with the insurance company. This means that if an extra bedroom is added or the basement is finished, the insurance company should be informed. If items go missing from those areas and the homeowners insurance coverage does not show them as part of the home, claiming any loss from them will be difficult if not impossible.
As well, make sure to have a complete inventory of all personal property in the home, especially electronics and jewelry. It is best to begin this at the same time the insurance policy is purchased and to keep it current as new items are acquired. This can be a time-intensive process but will assist greatly in obtaining a fair settlement should any disputes arise over exactly what kind of property was in the home. In addition to the material goods in a home, make sure to be very clear who lives in the home and what their habits are. The insurance company will ask likely ask if anyone in the home smokes, among other questions. If so, admit it, or consequences can result. For example, if a fire ravages the home the insurance company will send an adjuster. If they discover that everyone in the home smokes, but the policy shows the house as non-smoking, the chances of a fair settlement will be significantly reduced, even if the fire was not as a result of a cigarette.
The key in obtaining a fair settlement in a home insurance claim is to be upfront and clear with the home insurance provider from the beginning, and also to be thorough in any documentation regarding the home. This will make the claim process far easier.