Insurance - you don’t need it until you need it, but when you do it’s important to know the steps involved in filing a claim. In order to receive the correct compensation you’re entitled to under the conditions of your insurance policies, there are many important details to remember.
Do I Need to File a Claim?
In some cases filing a claim may not be in your best interest, such as the following scenarios:
- The cost of the loss does not exceed your deductible.
- Your policy does not cover the loss.
- You’ve filed a claim within the last three years.
If you’re not sure if you should file a claim, contact our team and we will advise you on the best course of action for your situation.
Document Everything
It’s important to always have photographs of your possessions, including detailed images of your home, belongings, and automobiles, in the event you should experience a loss. Be sure to keep receipts for major purchases and any appraisals or inspection reports as well.
If you are in an automobile accident, always get a police report, even if you do not feel it is necessary at the time. A police report will detail the incident and, should you not be at fault, will protect you in the event that the at-fault driver files a claim against you.
In the event of a loss that results in physical damage to your home or automobile, it may be necessary to do temporary repairs to prevent further damage. In a situation where minor repairs need to be done before a claim adjuster can do an inspection, keep all receipts for any supplies needed and take photographs during the repair process. Do not complete any major, permanent, or structural repairs before an adjuster reviews your claim, or your claim may be denied.
After You File
So you’ve contacted your insurance company and filed your claim, now what? Shortly after your claim is filed, you will receive a call from the adjuster assigned to your case who will ask you questions about the loss. The adjuster will also schedule a time to do an inspection of the damage, typically within one week of the event. If it was necessary to do any clean-up or temporary repairs to your home or vehicle, the adjuster will request a copy of your photographs and receipts.
Get Estimates
While many insurance companies have contractors and auto shops they work directly with, you are free to choose the company who completes the repairs to your home or vehicle. Although the damage may be caused by an accident in which you were not at fault or an act of god, anytime your insurance carriers pays a claim on your behalf there is always the chance your premium could increase. Shopping around to get the best value and service is in your best interest to avoid major rate spikes.
Understanding Assignment of Benefits
During the claim process you may be asked by the third-party vendor doing your home repairs to sign a document titled assignment of benefits (AOB). By signing this form you are agreeing to give this third-party rights to your claim which allows them to seek payment from the insurer and even gives them the ability to file a lawsuit against the carrier on your behalf. The home insurance market in Florida has been negatively affected by AOB claims due to the inflated payouts and lawsuit costs many insurers have incurred.
If you are being asked to sign any documents you are not sure of, please contact the Viera Insurance Agency team or your insurance company for help.
When Repairs are Completed
Get Estimates
While many insurance companies have contractors and auto shops they work directly with, you are free to choose the company who completes the repairs to your home or vehicle. Although the damage may be caused by an accident in which you were not at fault or an act of god, anytime your insurance carriers pays a claim on your behalf there is always the chance your premium could increase. Shopping around to get the best value and service is in your best interest to avoid major rate spikes.
Understanding Assignment of Benefits
During the claim process you may be asked by the third-party vendor doing your home repairs to sign a document titled assignment of benefits (AOB). By signing this form you are agreeing to give this third-party rights to your claim which allows them to seek payment from the insurer and even gives them the ability to file a lawsuit against the carrier on your behalf. The home insurance market in Florida has been negatively affected by AOB claims due to the inflated payouts and lawsuit costs many insurers have incurred.
If you are being asked to sign any documents you are not sure of, please contact the Viera Insurance Agency team or your insurance company for help.
When Repairs are Completed
Recoverable Depreciation
Most home insurance policies include what is called a recoverable depreciation clause. What does this mean? Even if your home and contents are insured at replacement cost value (RCV) your insurer will initially only pay you for the actual cash value (ACV) cost of your property, minus your deductible. In order to receive the recoverable depreciation, the gap amount between RCV and ACV, you must submit proof of repairs to your insurer.
Contact Your Agent
Most home insurance policies include what is called a recoverable depreciation clause. What does this mean? Even if your home and contents are insured at replacement cost value (RCV) your insurer will initially only pay you for the actual cash value (ACV) cost of your property, minus your deductible. In order to receive the recoverable depreciation, the gap amount between RCV and ACV, you must submit proof of repairs to your insurer.
Contact Your Agent
Our Viera Insurance Agency team is here to help you with your claim process. If you have any questions about whether or not you should file a claim or any questions about what to do after you’ve filed, we are happy to advise you.
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