Property Insurance is a specialized form of insurance which covers fire insurance, flood insurance, earthquake insurance, home insurance and boiler insurance. There are two ways to insure property:
Open perils include mostly all disasters except earthquakes, flood, nuclear incidents, terrorism and war. In case of named perils the cause of loss has to be listed in the policy for example theft, lightning, fire etc.
Certain dos and don’ts are to be kept in mind before filing for the claim. One must always comply with the terms and conditions provided by the insurance company failing which the insurance company may not pay the due claim.
In case of minor damages filing for property insurance claim is not always in the best interest of the claimant as there can be considerable increase in the subsequent premiums.
Insurance Companies generally keep a track of the clients’ history and when a claim is raised they charge accordingly.The Insurance Company has a certain chart known as the Comprehensive Loss Underwriting Exchange or CLUE which keeps record of the clients’ claims over the past seven years.
The CLUE report contains the following:
- Name of the Client
- Policy number
- The type of loss
- Type of property covered.
- Date of birth of the client.
- Date of the accident.
- Amount paid by the company.
- Address of the damaged property.
The CLUE Report must be checked by the client once a year for any discrepancies.
Some of the dos and don’ts are as follows:
- First and foremost the Insurance Company must be notified in writing.
- The property must be prevented from any further damage.
- One should not throw away the damaged items. Credit card statements or bank statements should never be thrown away as these serves as proof for the items or the belongings bought.
- A list of the damaged property or items must be made.
- Professional help must be taken to smoothen the process.
- Any repairs to the damaged property must not be made until the Insurance Company approves of it.
- The Insurance Company generally sends their own vendors for repair works, it is up to the claimant if he uses their works or not.
- The settlement must be made to the claimant and not to any third parties.
Some of the basic rules as when and how to file a claim are as follows:
- One should never file for a claim which is bigger than the deductible. In such cases it is always better to pay from ones pocket.
- One must always make sure that he is covered for a particular claim before making the claim. As in the case of damage caused due to floods, it is not always covered.
- In a ten year period a client must not make more than two claims or otherwise the insurance company may label the client as high risk.
- Last but not the least well maintained property always gets better premiums. So it is always in the interest of the client to keep his property safe from minor damages.