How Deductibles Work
Homeownership entails numerous responsibilities, one of which includes navigating the world of insurance policies and the subtle nuances within them. Central to understanding your homeowners' insurance policy is a mastery of the different types of deductibles: Standard and percentage deductibles, each catering to other aspects of coverage. Standard deductibles Standard deductibles are fixed amounts, typically from $500 to $2,000 and more, representing what you'll pay out-of-pocket for most insurance claims. Regardless of the damage cost, this amount remains constant. However, specific claims are more peculiar and necessitate a different kind of deductible known as the percentage. Percentage deductibles Percentage deductibles primarily apply to claims related to wind, hail, and hurricanes, calculated as a percentage of your home's insured value, usually between 1-10%. For instance, for a home insured for $400,000 with a 1% deductible, any claim would require a $4,000 payment out-of-pocket before insurance covers the remaining cost. If you opt for the higher percentage, you can see how quickly this type of coverage can get expensive if something happens to your home. Disaster deductibles Beyond the regular realms, there are disaster deductibles. Standard policies typically do not cover natural disasters like earthquakes, mudslides, and sinkholes. The deductibles for these are also percentages of the insured value, with areas prone to specific disasters having higher minimum percentage deductibles, like most California homes having around 15%. In regions like Florida, sinkhole coverage is mandatory due to the prevalence of ground cover collapse. Flood insurance Flooding is another peril not covered under standard policies, necessitating additional coverage, especially for residents in high-risk flood areas. Flood insurance, available through the National Flood Insurance Program (NFIP) and private insurers, offers two types of deductibles: Building damage and content damage. Choosing the right deductible involves balancing short-term and long-term costs, assessing financial resilience, and understanding how deductibles impact premiums. Premiums, the periodic payments made to maintain coverage, are influenced by risk levels set by insurers based on factors like construction, age of the home, and regional claims history. It's crucial to note that filing claims may increase premiums, regardless of the deductible amount. The nature of your claims, frequency, and the cumulative cost to the insurer are crucial factors in determining future premium costs. All this being said, you do have help. Your favorite restoration company is your expert on disaster restoration and working with your insurance company to get you back to normal. After all, it pays to call a pro! How Adjusters Work
When a storm wreaks havoc on your property, assessing the damage and beginning the recovery process can be overwhelming. You may not know where to start. And you certainly wonder who will pay for it all, either your insurance company or you. You have insurance for your home, so you hope everything is covered. Much of that comes down to the adjuster and the details of your insurance policy. All things being equal, though, what plays out is often based on people. And the decisions they make. Understanding what an insurance adjuster is and how one operates will help you in the event of the unimaginable happening to your home, whether fire, flood, or other damage. You want a smooth transition from damage assessment all the way to repair and getting back to normal. What are ‘adjusters’? Property insurance adjusters, or claims adjusters, evaluate property damage to determine how much an insurance company should compensate the policyholder and even scarier … IF they should. They inspect the damaged property, review policy details, and determine the validity and worth of a claim. In the past, adjusters visited all sites. Now, they may do it remotely. But odds are a visit to your home for the inspection and evaluation is what you can expect. The process Once a claim is filed, the insurance adjuster will contact the policyholder to discuss the details of the damage. The adjuster visits the damaged property to assess the extent and cause of the damage. They will take photos, measurements, and notes. The adjuster should review the insurance policy to see what is covered, any exclusions, and the policy limits. Based on the policy details and the assessment, the adjuster will either approve or deny the claim. If approved, they will provide an estimate of the repair costs. Once an agreement is reached, the insurance company will pay the claim directly to the policyholder or the repair contractors. If you are paid, you are responsible for paying the contractors. Each state has unique laws regulating payment. In the process, be sure to document everything. Take as many pictures as you fee you need, then take more. Use video. Protect yourself. The more information you have documented, especially photos and videos, will help your case if you have any issues with coverage. You have an ace in the hole, as well. That would be your favorite disaster restoration firm. Call them if you ever have damage to your home. They will walk you through the process and be there for you, and do the cleanup and repair work, and most likely bill your insurance company. After all, it pays to call a pro! |