Insurance tips

Before a storm strikes, be sure to have an accurate inventory of your home and automobile and take the proper steps to secure your property. If your home or car is damaged or destroyed by wind, water or fire, the steps you have taken to be prepared will help you in making any claims with your insurance company.

Auto

If severe weather threatens, move vehicles to covered area to prevent damage from high winds, flying debris and hail.

If damaged by windstorms or hail, most vehicles are protected under the other-than-collision portion of an automobile insurance policy (comprehensive). Check with your insurance agent to be certain of your automobile coverage.

Home

Check with your insurance agent to assure adequate coverage is provided by your homeowners? insurance policy

Remember to notify agents of any improvements or additions to the home.

If your homeowners' insurance policy does not have wind/hail coverage, you will need to purchase separate coverage, which has a 15-day waiting period. Consult your insurance agent.

Check with your local government's planning department to determine if your property is in a flood risk zone. If so, you need flood insurance. Flood insurance is not part of homeowners', mobile home or rental insurance policies. You will need to purchase separate coverage, which has a 30-day waiting period.

Investigate purchasing replacement-cost coverage for your home and its contents. This option provides for the rebuilding or replacement of damaged property and belongings at current costs, rather than depreciated values.

Check your policy for loss-of-use coverage. If you are required to seek temporary shelter due to a covered loss, such as a tornado, many policies will cover these expenses up to a certain amount. If your home is uninhabitable because of physical damage, most homeowners? policies will pay additional living expenses while your property is being repaired. Lack of power and water is not considered physical damage and, therefore, additional living expenses will not be covered.

Consider constructing an underground or in-home shelter. (See Shelter Information Sheet.)

Inventory

It is important that you videotape, photograph or compile a written inventory of your home and belongings.

Keep the inventory off-premises in a safety deposit box or with an out-of-the area contact. The inventory will provide a record for you and the insurance company should a loss occur.

Go through each room of your home and list every item, including the purchase date, price, model and serial numbers, if applicable. Don't forget closets, the garage and the basement.

Include the appraised value of antiques, jewelry and other costly possessions. Attach professional, written appraisals when necessary.

Slowly pan the camera around the room in order to capture each item on film.

• Obtain close-ups of expensive items, such as jewelry, fine art, antiques, stamp collections, etc.
• Consider grouping items for easier inventory.
• Narrate the video by noting purchase cost and date, model and serial numbers on appliances and other appropriate items.

Update your inventory every two-to-three years.

After the storm:

Contact your insurance agent or company representative as soon as possible and ask for instructions on what to do until your adjuster arrives.

Begin preparing an inventory of personal property damaged or destroyed, and take pictures of the damaged property.

Protect your property from further damage. Your reasonable expenses to protect your property are part of the loss and are generally reimbursed by insurance companies. Keep all receipts.

Do not have permanent repairs made until your insurance company has inspected the property and you have reached an agreement on cost of repairs.

Use reliable, licensed contractors for repairs. Do not pay in cash.

Adjusters are required to properly identify themselves and, if requested, show you the license issued by the NC Department of Insurance.

If you feel the settlement offered by your insurer is not fair or complete, contact the company to provide additional information to support your claim.

You are not required to use the contractor the insurance company recommends.

You should use reliable, licensed contractors.

Get a written estimate and read the fine print. Deal with a local contractor if possible.

You should ask for references.

Make sure the contractor carries general liability insurance and workers? compensation.

Obtain a complete contract that states the tasks to be performed and all associated costs including, if applicable, costs for permits or licenses.

Ask for a written guarantee stating who is responsible for equipment and materials.

Avoid on-the-spot cash payments. The safest route is to write a check made out to the contracting company.

If you need to cancel a contract, cancellation should be done within three business days of signing. Be sure to follow the agreements stated in the cancellation clauses and send the notification by registered mail.

If excavation work is being performed, make sure a qualified inspector approves the work before it is hidden from view.

 If you want to confirm that a public adjuster is licensed or have questions about the adjuster's actions, you can call the Agent Services Division of the NC Department of Insurance at 919-733-7487.

If you have problems with a contractor or have been the victim of fraud, you are urged to contact your local Better Business Bureau or the Attorney General's Consumer Protection Section at 919-716-6000.

You can call 919-733-7434, the Consumer Services Division of the NC Department of Insurance, with questions or concerns about your insurance coverage.

The N.C. Department of Insurance

« this page last modified 05/03/07 »