Screee!

Thud!

“Oh *#%!”

These are sounds one does not generally welcome into their day. They can certainly affect not only the day, but sometimes the rest of a life as well.

How one moves through the process of handling a claim can often be the key in getting a claim settled efficiently and effectively. The guideline for auto and home claims can differ because of the types of losses involved, but they all have the same starting requirement – the insurance policy.

Auto claim

The most common claim any person will face is an auto accident claim. The key in getting one started is being calm, informed, and cooperative. Regardless of where an individual finds him or herself involved in an auto accident, there are certain steps that should be followed:

• Make sure you and any passengers in your vehicle are safe.
• Call authorities immediately, especially if the accident is on a public road or parking lot.
• Check on individuals in the other vehicle.
• Have your insurance and vehicle documents available. Up-to-date insurance policy declarations should also be kept in a vehicle, even though most insurance companies have online portals to access that information.
• Share your information with all participants in the accident. This should be your name, phone number, insurance policy information, and information on any hurt individuals in your vehicle.
• Do not move vehicles unless told to by authorities. If they do have to be moved to reduce risk of further damage or safety hazards for others, record their positions with the camera feature of your mobile phone before doing so.
• Do not assign blame for the accident to yourself or another driver. Let that responsibility fall on the police officer or accident scene investigator.
• Notify your insurance company immediately, regardless of perceived fault. If police respond to an accident, they must file a formal report with the Indiana Bureau of Motor Vehicles. Filing an insurance claim, even if you’re not at fault, will generate proof of insurance for you that is sent to the BMV.

It’s after the accident that things can become challenging. First, decide if you want or need to use your own insurance company to handle the claim. This may seem counterintuitive, especially if you are decidedly not at fault. A lot of the decision making on this relies on what the other driver’s insurance company is.

Major name auto insurers are very good at handling claims quickly and efficiently when they are reported. However, some low-rate auto insurers have claims systems which are poor or almost non-existent.

Also, it may seem like a good deal when someone offers to pay repairs out of pocket, but that can also be fraught with problems. What guarantees do you have that the individual will keep to his or her promise? If unseen problems mean repair costs are higher than estimated, will that person still pay? Who will pay for a rental car while yours is in the shop? Those are all questions an insurance company is prepared to answer.

Insurance companies may also differ when it comes to selecting a repair shop. Some companies have relationships with body shops to streamline damage appraisals and speed up repair times. Others may request two or three estimates before offering a direction on which shop to use.

If there is need for medical treatment, do not wait to get approval. Keep receipts for any medical treatment or services. Most claims systems will reimburse initial costs quickly and then pay for ongoing treatment and services.

Home claim

While an auto claim will create an immediate impact, a home claim can create long-term challenges for an insured. Just as with an auto claim, it is important start a claim as quickly after a loss as possible.

Equally important is knowing what caused a loss. Some causes can be pretty evident – high winds or tornados blowing off shingles or collapsing entire structures, fire damaging or destroying a home, or a broken water line causing the kitchen to flood.

But damages caused by a slow, long-term plumbing line leak may not be covered because the loss wasn’t caused by the sudden outflow of water, which is a named peril. And the larger the loss, the longer it may take to get things resolved. Fortunately, most home policies have coverage for loss of use, which helps pay for unexpected costs such as renting a hotel room or home while repairs are being made.

In all claims, keep in mind that policies are not blank checks. Each policy has a limit on what benefits can be paid on a claim. An umbrella policy may assist in the event of large-scale liability claims, but the amount to be paid for auto repairs is limited by a vehicle’s repairable value. If repair costs exceed a certain percentage of value, the vehicle may be declared a total loss and that depreciated value paid out as a benefit.

A home insurance policy also has a limit on how much can be paid for damages to a dwelling, other structure, and personal property. These limits are listed as Coverages A, B, and C. While there are policy endorsements that can extend insurance limits, those endorsements don’t exist in every case.

Lastly, when dealing with a claim, don’t expect the insurance agent to handle things for you. It is the job of the insurance adjuster to work with you, not the agent. Regardless of what television advertising might suggest, an agent has no authority to approve or extend repairs or claims requests. That responsibility falls upon the claims adjuster, so be nice to him or her.

Alan T. Girton is a veteran agent with Indiana Farm Bureau Insurance. To learn more, visit https://www.infarmbureau.com/agents/Alan-Girton-Howard-Kokomo-IN