Wednesday, August 26, 2009

Preparing for the claim we hope never happens.



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Keeping in mind we had our first scare of the 2009 hurricane season and another tropical system lurking off the East Coast, The Walch Group thought it would be timely to encourage everyone to begin or update those lists for the claim we hope never happens.
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If a catastrophe of any type, hurricane, fire, flood, tornado, windstorm, even a burglary were to strike, are you ready to prove your claim to the insurance company? Statistically, most of us are not. With over twenty-four years of insurance field experience, I can attest to the toll it takes on a family having suffered a property loss. The difficulty of a financial loss combined with the emotional loss is very stressful on a family. While we may not be able to prepare emotionally for a loss, we can prepare for the financial loss.
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At The Walch Group, we recommend you complete or start the list of personal property (a.k.a. contents - if we were to turn our home upside down, whatever falls out is our personal property) we have been putting off. It is up to us as policyholders to help our adjuster prove our loss to the insurance company. The easier we make it for the adjuster, the quicker and more complete our claim will be processed. Of course our personal property list is the first step. Do not forget the home itself, storage units, rental properties, dorm rooms, etc.
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Take Pictures
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TWG recommends you start with at least two pictures of each room from opposing angles and all sides of the exterior of the home including the roof. While in each room, open the drawers, closets, cabinets and take photos of each. Take separate pictures of expensive items; jewelry, flat screens, silver, crystal, china, silverware, computers, furniture, antiques, electronics, etc.
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List your items
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To support our pictures, a personal property list should include the item, room, make/model, serial/i.d. number, date purchased, where purchased, purchase price, estimated current value, photo number. Why you ask, would we need all this information? Our insurance adjuster is going to ask us for this information at the time we make a claim. Why do we need to include the purchase price and current value? Depending on the item, the purchase price may be greater today than it was when we originally purchased the item, i.e. a leather couch. If we have the Replacement Cost Provision (R/C) on our policy (not all policies do, check with your agent) we are entitled to the higher amount based on the provisions of our policy. Conversely, some items cost less today (flat screen t.v.'s come to mind) than they did two years ago and we would be paid less based on the replacement cost of the item. The adjuster will apply the proper depreciation for each item. Check back soon and we will offer a MS Excel spreadsheet to download in order to help you with your list.
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Keep your information in a safe place
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Now that we have taken the pictures and created our personal property list, keep a copy in a safe place such as a safety deposit box or on a secure remote server such as Carbonite.com or with a trusted friend or relative who lives out of state. Offer to do the same for them.
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Update
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Be sure to update your list with any major purchases or gifts received and after the holidays. It is the last thing we want to do next to mowing the yard, but we should update the list at least every two years.
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Insurance Check-up
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Now, go visit your insurance agent for a home insurance check-up. Share with the agent the personal property list. Do we carry enough insurance? Should our silver, jewelry, artwork, weapons, furs, collectibles, etc. be listed as a rider (inland marine policy) because of the limits on our homeowners policy? Do you have the Replacement Cost Provision (R/C) on your contents policy. If not, can we afford to suffer the depreciation that will be applied to our claim. Many of us on the coast are already going to suffer a higher deductible during a hurricane loss. Do you have the Replacement Cost Provision (dwelling) for your home/condo/vacation home? Do you need a flood policy? Flood property and contents are sold separately and have separate deductibles. Flood policies also have low limits for many items and restricted coverage that are not available as a rider for the flood policy. Check with your agent to acquire a policy that will cover these items in case of a flood.
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We look forward to your input and ideas for future posts. Please contact us with your ideas or suggestions.

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