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Hopfully it is a general state of mind concerning insurance that promotes a position to never have to use it. I have
been given the impression by many that having insurance means that you can be careless because you have it. I hope my
high exposure to this attitude is rare.
One of the first things to do after something happens is make any
effort that is reasonable to prevent further damage or danger. It is not reasonable to put yourself in any peril trying to
safeguard any property. If it is an auto accident you need to try and remain calm and not confront the other driver. Contact
the authorities as soon as possible. The filing of a claim will involve identifying the incident as to where and
how. Identifying who was involved. Then supplying proof of loss. An adjuster will be assigned to confirm liability and amount
of loss to be submitted to the company at fault for payment unless damages are subrogated by the injured party's company.
Subrogation is when the company of a party injured by someone else pays the injured party for their damages an amount agreed
upon as payment in full then communicates with the company of the party at fault to settle the claim. Subrogation can be very
helpful to an injured party if the company is going to be fair. At times a company will subrogate for much less than they
expect to recover. It could be helpful in that some claims can take years to settle and subrogation can provide payment now.
Good judgement or professional advice is needed with this consideration.
The reimbursement option in your policy
is critical when filing a claim. Most states will require an insurance company to obtain a rejection in writing of replacement
cost reimbursement in order to make actual cash value the option. Actual cash value will pay what a covered item is worth
according to the amount paid for an item less depreciation. Replacement cost will reimburse the cost to replace an item
like the one lost or repair the item to working condition. In most cases the actual cash value is paid on a replacement cost
reimbursement until receipts are presented on item replaced. Only an amount up to the cost to replace a like item is paid as
in being reimbursed to replace a 25 inch tv might be $400 but the item has depreciated to $200 so buying a 40 inch tv for
$700 will still only require the company to pay $200 until a receipt is presented then an additional $200 even though
the receipt is for $700.
Some homeowners of older homes may have to settle for the actual cash value reimbursement
option since older homes (50 years or more) usually are just that, older. There may be code violations for wiring and plumbing
and there is possibly structural problems. It is usually possible to get adequate coverage for a restored older home. Contents
are commonly on a replacement cost reimbursement with many restrictions for such items as jewelry, cash, tv sets and
guns. There are other specialty items with replacement cost restrictions that can be covered for an additional premium on
an itemized list.
If there is any legitimate dispute over the amount of damages deemed by the adjuster, most states
have mediator or arbitration procedures to settle the matter.
A policyholder should not depend on the accident
report from the police to absolve them of liability. It can still be determined they are at fault even if the police report
says the other party is at fault.
If you sincerely feel the insurance company for you or others involved in an
incident conducted themselves improperly, there is usually a complaint procedure to follow provided through the state.
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