Insurance know abouts
January 31st, 2009
Verify that your policy is paid for, all conditions for coverage are met, and that your assets are properly insured. Household contents and homeowner’s insurance are both on a replacement cost basis, meaning that they must cover the cost of replacing your home and contents instead of their original cost. Under insurance can prove to be very expensive oversight when you go in to claim your insurance policy.Make sure that you comply with all requirements on your policyBe sure that you are in compliance with all your policy’s requirements. Read and have an understanding of the wording used in your policy. This is the only legal contract that you have with the Insurance company and it is binding. If you fail to comply with the requirements given in the policy, it could result in repudiation of a claim. If for example the policy stipulates that for theft cover the premises must be protected by an alarm system this means that the alarm system must be in working order and that the alarm system must have been activated at the time of the theft if the premises were unoccupied. If you failed to activate the alarm your claim will in all likelihood be repudiated. Make sure that you have an understanding of each requirement to ensure compliance, as this is just one example. Be aware of what excess is applicable on your policyYou should know about what excess is applicable on your policyInsurance policies can and always do have excess amounts that apply to the very many sections of the policy. These excesses usually vary according to the type of claim. This amount will be deducted when your claim is paid out and an excess is the amount of the insured’s liability in the case of a claim. When you have suffered a loss and need to claimWhen you suffer a loss caused by one of the insured risks, contact your insurance company as soon possible and wait for their further instructions. Only in emergency situations should you act on your own accord. Just find out what are the documents that the insurance company will need and gather the documentation that you will need to submit your claim. You will require written proof of damages when submitting your claim and therefore must insist that all estimates of damages and costs of repairs and replacements to be in writing. Bear in mind that the insurer will be paying for the damages. Never leave any orders to any workers to do repairs without the written approval form the insurance company. Never authorize repairs without first consulting with the insurance company as they may decide not to cover the price.If you, as opposed to the insurance company have authorised repairs then the insurer has the right to pay the insured a cash settlement in lieu of paying the contractor.It will indicate that the claim has been matured completely to the extent that the indemnity company is anxious and some hidden costs will be for your account. Dissatisfactory work carried out will also be a problem between you and the contractor. If the insurance company authorises repairs then the agreement is between the contractor and the insurance company and they will ensure that the work carried out is to your satisfaction.Signing of the release formYour signature on the release form. Before they hand you a check most insurance companies will require you to sign a release form indicating that the insured party will accept payment as a full and final settlement. It is advised not to mark this form unless you are entirely contented with the job or be in agreement with the resolution amount presented by the corporation.If you follow these basic guidelines then you will have peace of mind in the knowledge that in the event of a loss your insurance will place you in the same position as what you would have been had you not suffered the loss – and that is the sole purpose of insurance.
Entry Filed under: Business