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Everyone knows when it comes to real estate there are only
3 things that matter – location, location, location. Similarly, when it comes to insurance claims, the key is
documentation, documentation, and you guessed it, documentation.
I can do several blog posts on subjects like, “The 5 most
common mistakes made by policyholders". But when you boil it all down, many of
those mistakes can be avoided if you start with documentation. Now, I can tell
you the word “documentation” can mean different things to different people. We
all know the person that takes their shoe box overflowing with random receipts
and bills to their accountant on April 14th and proudly says,
“There’s my documentation, all organized for you!”
Sure, the accountant can fix it, after filing an extension
for that person, and a little cursing, but he or she will probably charge more
for all the extra time it takes sorting out that mess. So, when we talk about
documentation, we are really talking about documentation that is organized and
meaningful, not just random, illegible bits of information.
At the start of every claim, I recommend people get out a
legal pad, so they can keep track of every conversation and activity that
relates to the claim, and keep it in chronological order. Start by noting the
time and date of the loss, what happened, what was damaged, and other relevant
details (maybe other parties were involved, where it happened, how, etc.). Make detailed notes of every phone conversation (especially
those with the insurance company adjusters), appointments with adjusters,
contractors, etc., other activities related to the loss, and of course you want
to record what has been damaged or destroyed.
For property claims, this can usually be broken down into 2
main areas: structural damage, and
Courtesy CDC.gov |
Depending on the size of the loss and your abilities, hiring
someone to help document a large personal property loss could well be worth it.
I have personally seen clients so stressed out by the event that
damaged the property, that the thought of documenting the loss was more than they could bear. They would
rather walk away from tens of thousands of dollars than risk their very
sanity.
Needless to say, if you are really up on your documentation,
you already have a complete inventory of everything in your home, complete with
description, date and place of purchase, photo, receipt, owner’s manual, etc.,
before the loss ever even happens. Just be warned, your insurance company may
believe such attention to detail and foresight suggests the loss was planned. Sometimes you just can’t win!
In addition to the legal pad, you might want to use a folder
or binder to keep related bills, estimates,
Courtesy of mentalfloss.com |
*Note: some attorneys might advise against writing directly
on a document you did not personally create. I am not an attorney, and I am not
giving legal advice here, but in my experience, if you can
explain what you wrote, when you wrote it, and why you wrote it, you should be
fine. And by all means, when in doubt, ask an attorney.
The point is, in addition to maintaining your documentation,
and categorizing your documentation, sometimes you need to document your
documentation. You also need to understand your documentation. This can be
difficult, especially if the documentation is handwritten with poor penmanship
and grammar, or is of a technical nature. Whoever is providing the
documentation needs to understand what it is they are giving you, and they
should be willing to explain it to you. This is where that legal pad comes in
handy again. If you don’t understand what the documentation says, how are
you going to explain it to someone else? If no one understands it, what
good is it?
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So, there you are, taking notes of every conversation you have with
every person related to the claim in any way. You are keeping every related
document in order, and you understand what they mean. You have a list of everything that is missing or damaged. Now, when your
adjuster asks you to prove your claim to them, you can make it all but impossible for them to do anything
but pay your claim promptly and fully. And if they don’t, you have everything
you need to take matters to the next level, whatever that may be.
From boston.barstoolsports.com |
It may sound like a good deal of work to document your
claim, but just think about what happens if
you don’t – that is the stuff “5
most common mistakes” lists are made of. The stress, heartache and financial
repercussions from failing to document your loss can be tremendous, and trying
to document and organize everything after the claim starts to go south can be
more work than doing it to begin with.
Documenting and organizing from the start, and consistently
throughout, will take much of the stress out of the process, leaving you more
confident and comfortable with everything that is happening. It can be the
difference between feeling like a victim, or feeling like you are in control.
Mark Goldwich is president of Gold Star Adjusters, a group of public insurance adjusters dedicated to helping citizens get the maximum settlement for any insurance claim.