How to Get a Fair Settlement With Homeowners Insurance

Homeowners Insurance Policy

How often have you heard someone say, "My insurance company loves to get my premiums, but hates to pay claims." While there may be situations where this is true, all good insurance companies realize they are in the customer service business as much as the insurance business. Getting a fair settlement often involves your efforts to make it easy for them to be fair. They are not mind readers nor intimately familiar with your personal property.

Things You'll Need

• Pencil and paper
• Personal computer
• Digital camera or video recorder
• Purchase receipts or ability to estimate replacement costs

Instructions

1. Make a complete inventory of your structures and your personal property. Leave nothing off your inventory list. Be sure all structures are listed, including garages, sheds and other items classified as structures. Check your police for the list and a definition. Include all personal property, not just those items that may have individual insurance, like expensive jewelry, antiques, art, or rare items. List every category of personal property.

2. Estimate how much it would cost to buy your personal property new. This is called replacement cost in your insurance policy. If you're unsure of replacement cost, write down your best guess. Should you be diligent about keeping receipts, you can list the original cost of more costly items, such as TVs, personal computers, furniture, kitchen appliances and clothing.

3. Don't overlook some common yet costly items. Many people forget about listing deck or patio furniture, barbecue grills, lawn mowers, clothes washers and dryers, small appliances, golf clubs, basketball hoops, and other items you may take for granted.

4. Take pictures and/or videos. use your digital camera or video recorder and save images of your home, outbuildings, and all of your stuff. You will eliminate most questions and requirements for other evidence that you own certain items. Should your home or personal property suffer damage, take pictures immediately. Even before an insurance adjuster visits you, you can deliver proof with before and after pictures of your property and its problems generating a claim.

5. Organize your inventory, file it where you can find it quickly, and back up your data. Keep your data close at hand and use a flash drive or CD to copy and store your inventory away from your home. Covered hazards on a homeowners insurance policy tend to occur at your home. Surprise? Store a copy of your home inventory in a safety deposit box at your bank or credit union. If that is not convenient, give the flash drive or CD to a friend or family member for safe keeping and fast access when you need it.

Tips & Warnings

• Think about all personal property to be sure you list everything. Be reasonable regarding replacement costs. Insurance companies don't pay for sentimental value. Fully understand what hazards and property is covered by your policy and that which is not.

• Don't assume coverage you may not have. Read your policy. Back up all of your digital records. Storing digital photos and videos away from your home protects you if disaster strikes. Also store copies of your policies and copies of receipts for major purchases off-site.

References

• Learn More About Homeowners Insurance
• Save Money on Homeowners Insurance

Resources

• How to Get a Fair Settlement Ideas