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Settling a Claim:
How to Begin Before It Occurs
In the event of a claim against your property insurance policy, the best way to ensure a fair and equitable settlement is to make plans to settle the loss before it even occurs. The steps that you take in preparation prior for a claim will facilitate the process in the event a claim does occur.
Property insurance is a guarantee made by an Insurance Company stating that, in the event a loss occurs, you can be compensated up to a certain amount depending on you insurance policy. In fact, most present-day polices are written on a Replacement Cost basis, which means that - within the policy terms and conditions - you will be compensated for the cost of new merchandise at the current price regardless of what you originally paid. Once you fulfill your obligation to the policy agreement by paying the insurance premiums, an insurance company is expected to honor their contractual bind by processing a prompt and fair settlement of your loss. The objective is to get the maximum settlement to which you are entitled as quickly and as easily as possible.
So what can you do before a loss to simplify the settlement process? One single word sums it up: Documentation. To ensure a claims process that is quick and efficient for the insurance company, it is beneficial to have the proper documentation. Proper Documentation can take many forms ranging from a bill of sale, to a cancelled check or credit card receipt; however, it is highly unlikely that you would have one of these items for all the property and goods you currently own. Some members may have made an inventory of Personal Property taken on a recent mission or posting. This itemization would be a good start, but still may not meet all your needs. For the rest other options should be considered.
There are two simple actions you can take to provide yourself with a comprehensive overview of your Personal Property.
Photographic Record. This is actually much less complex than the name might imply. First, stand in each of the four corners of a room and take a photo diagonally across that space. Four pictures should capture in most rooms. However, if the area is exceptionally large, you may wish to take two slightly different views from each corner. Please be advised that video cameras and camcorders, while easy to use, are not the most ideal tools for capturing individual images. Film or digital cameras are the recommended, inexpensive alternative.
Next, take individual shots of furniture used for display or storage. For example, you may wish to take one or more images of a bookshelf. It is not necessary to be able to read the title of each book; however, being able to count or estimate the number of books from the picture will be beneficial. Additionally, include a picture of electronic equipment and an overview of CD’s, tapes, records, DVD’s etc., to provide an estimate of the number of individual items you may own in each category.
For your bedroom images, open closet doors wide so the apparel hanging there can be captured (if that does not allow a full view consider laying the items on a bed or on a portable clothing rack). It is advised that you are able to count the number of items. Furthermore, open the dresser drawers for a record of items stored there, as well as lay out the contents of jewelry boxes on a dark blanket or sheet. Try photographing close enough so that individual objects can be identified.
For the dining room, place all high-valued china and silverware on a table. Take an overall image to summarize the extent of the property, as well as close-ups of each individual service set (this would enable you to identify the patterns on the dining sets).
In the Kitchen, open cabinets, pantry and storage closets. It is recommended that you do not overlook everyday dishes and kitchen appliances such as dishwashers and/or in-sink garbage disposals.
Homeowners should take photos inside the attic, the basement, the garage/tool shed, and from outside. Apartment dwellers should not overlook items kept in a separate storage room. Everyone should take pictures of property in off-premises, self-storage facilities.
Once the photographs are in your possession, it is imperative that they are kept in a location completely away from your residence. You would not want to lose your documentation in the same adversity that damages your property. A recommended place is in your desk at the office.
The photographic record comprehensively documents all the property you own up to the date the photos are taken. For the property acquired after the photographic record, a simple solution called Drop File can assist you in tracking new purchases.
First, set up a file in your office where you can keep a record of new items that you obtain. Next, choose a price threshold -we suggest a price point in the US $250 to US $500 range. Every time you make a new purchase in excess of the set threshold make a copy of the cash register receipt, a bill of sale, or even the cover of the owner’s manual, and place it in your designated file in the office. It is not necessary to keep the file in any special order.
Based on claim statistics, it is likely you will never suffer a significant catastrophic loss. However, at UNFCU we understand the importance of peace of mind, and we hope that the above practice can offer you comfort in knowing that you have, in your files, adequate tools to help you settle any potential claim.
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