Credit: Drazen Zigic via Freepik
There is nothing easy about filing a home insurance claim. There are deadlines, paperwork, complicated policy language, and a number of different people who are involved throughout the process. It can be difficult to keep track of everyone you have to talk to, but keeping up with timely communications is essential to making your claim go smoothly.
Given how many people can wind up involved in an insurance claim, it pays to know who they are and which parts of your claim they are responsible for.
#1 The Insurance Adjuster
Once you file your insurance claim with your insurer, they assign an insurance adjuster to your case. What is an insurance adjuster, you ask? They are a professional who estimates the damage or the extent of loss, verifies your claims, and submits their findings to the insurance company.
In the case of a fire, they may do things such as estimate the cost of repairing your home, estimate the cost of your lost belongings based on a document that you submit called a Schedule of Loss and pass their findings along to the insurance company.
They may be directly employed by the insurance company, or they may work for a third-party firm. Nevertheless, they do not represent your interests and may be motivated to control costs for the insurance company.
#2 The Insurance Company
You will also be in touch with someone from the insurance company. You will have to inform them of the loss immediately after you find out about it. Afterward, you will have to initiate your claim in writing.
From there, the insurance adjuster will handle your claim until the insurer is ready to provide you with an offer. You may also have to deal with them on an ongoing basis as your payment is disbursed.
#3 The Public Insurance Adjuster or Insurance Lawyer
You also have the option of hiring someone to help you with your claim, and this can be a good idea for significant claims and total losses. A public insurance adjuster or an insurance lawyer works for you.
They can guide you through communicating with the insurance company, working through issues with the insurance adjuster, and pushing back if the insurer makes an unsatisfactory offer.
#4 Contractors
Settling your claim is not always as simple as getting a cheque. The insurance company is often still involved throughout the repair process. Insurance companies often want to work with one of their preferred contractors and will base their settlement on an estimate provided by one of those contractors.
If you want to work with your own contractor, you may have to accept a smaller lump sum payment and will be on the hook for any cost overruns. Going with the insurance company’s option can be a safer option, as the insurance company can deal directly with the contractor.
#5 Your Mortgage Lender
Finally, if you have not paid off your mortgage, you may also have to communicate with your mortgage lender. They may be able to provide relief on your mortgage payments if you have lost your house, but they are also co-payable on your insurance settlement. This means they have a say in how and when you can spend the funds.
Knowing who all the people involved in your insurance claim are can help you navigate the process and keep it running smoothly.
