Insurance is a form of risk management. In simple terms, it’s like betting. You want to place your “bets” wisely.
Home Insurance
This is a “must have” product. Even if your house is paid in full, you will want to make sure you have coverage in case of disaster. We all need a home so you want to cover yourself here.
Some types of disasters are not a good bet for the insurance industry because they are too likely to happen. This is why flood insurance is provided by the US federal government and is not part of standard home insurance policies: Because it isn’t a question of if your area will flood. It’s a question of when, so there’s not really a bet there.
It’s Protection, Not A Get Rich Scheme
Insurance is intended to mitigate your losses. Some people may think of it like they are buying a lottery ticket but those folks don’t really understand what insurance is about.
This is a loss you do not want to take. If you are hoping to insure something and then see it all go up in flames so you can collect, you are doing it wrong.
You should be making every effort to use best practices to protect your property yourself. The best outcome is that you never need the insurance to pay out.
Insurance is only about financial protection. There is a lot of pain and suffering involved in a major loss that money doesn’t really fix.
If Something Bad Happens
Make sure you document everything. Contact the insurance company promptly. Insurance policies routinely have deadlines for filing claims. If you miss your deadline, you may not get a dime.
You will want to immediately do a quick search for hidden issues that can happen. Maybe there was a fire and your house did not burn but you should do a quick search.
If there is ash secretly getting into your attic or HVAC system, you will want to know what to look for and do so promptly. Finding out quickly about hidden damage associated with various types of claims is the only hope you have of getting properly reimbursed and the amount of money involved can be substantial.
Who Can Talk To Your Home Insurer?
There are only four people that can talk to the company covering your house: You, your insurance broker, your attorney (and you have to sign special paperwork in this case) and an independent insurance adjuster.
If there has been a major disaster, it can be well worth contacting an independent adjuster. Insurance is complicated stuff and the same policy can pay different amounts depending on local state laws.
You probably have no idea which laws apply. An adjuster will know those details and they have a track record of getting a better settlement than average.
If you have reason to think you may need to sue, the first consultation with a lawyer is often free. You will want to talk to them sooner rather than later, while the details are fresh in your mind and before you have made some dumb mistake. It’s common for people to accidentally destroy evidence while doing clean up, thereby undermining their own claim.
