Christie Administration Offers Guidance to Consumers on Filing Insurance Claims after Storm

Trenton, NJ – In the aftermath of storm Sandy, one of the most devastating storms to ever strike New Jersey, the Christie Administration and Department of Banking and Acting Insurance Commissioner Ken Kobylowski today offered guidance to New Jersey consumers on filing insurance claims to restore damaged homes and repair or replace property.

“The first consideration is safety. People should wait until it is absolutely safe to return to their homes before doing so. Once people are safely able to inspect their property, there are a few basic steps they can follow to file their insurance claims, restore their property and move forward with their lives.”

“Filing claims is a significant process, especially at a time when a  resident has  lost a home or suffered major damage to property as a result of Sandy,” Acting Commissioner Kobylowski said. “But it is essential to getting all the help that consumers are entitled to under their policies.”

“I urge consumers to contact their insurance carriers as soon as possible and get the process started. The State’s insurance companies are facing an unusual event in New Jersey, but they are prepared for an increased level of activity.”

The Acting Commissioner offered the following suggestions to New Jersey residents:

 

Following the Disaster

 

• Once     it is safe to return home, assess the damage and make temporary repairs or     arrange for a qualified professional to do so in order to protect your     property. Most policies cover these temporary repairs if the damage is due     to a covered loss.  Take photos of the damage and remove personal     property if your home cannot be secured. Make a list of damaged property.     Do not dispose of property until an insurance adjuster has reviewed it for     your claim. Many policies include reimbursement for storage costs incurred     until your home is repaired.
• Make sure you     know what is in your policy and what coverage options are available for     your cleanup and repair efforts.

 

• If you can still     live in your home, talk with your agent or insurer about critical repairs     that need to be made. Whether you make the repairs or hire someone, save     the receipts for your claim and take pictures of the damage before you     start the temporary repairs.

 

• If you need to     find other lodging, keep records of expenses and all receipts. Homeowners     and renter’s insurance generally provide limited coverage for expenses     like: meals, rent, utility installation and transportation if the reason     you must leave your home is due to a covered loss, but if the loss is not     covered, you will not be reimbursed for these additional living expenses.

 

Reporting Your Claim

 

• Most insurance     companies have a time requirement for filing a claim. The process will go     faster if you can locate a copy of your policy, home inventory and have your     insurer’s contact information.

 

• Call the company     or visit a mobile claims center to start your claim. If you cannot find     the company or agent’s number, call the Department at 1-800-446-7467 or go     to www.dobi.nj.gov.

 

• You will be     asked to list all items destroyed, damaged or missing. If you do not have     a home inventory, begin making a list of items going room by room from     memory. Include as much detail as possible, like where and when the item     was purchased, the cost, brand name and model. If your car is damaged     while in your garage/carport, it is covered by your automobile policy —not     your homeowners policy. If you are insured by two separate companies for     these policies you must file a claim with both companies.

 

Handling the Claim

 

• Your insurance     company will send an insurance adjuster to survey the damage at no cost to     you. Public adjusters may offer services to represent you, but you would     be responsible for any related fees, which is normally a percentage of the     amount the insurance company pays you. You do not need to hire a public     adjuster in order for the insurance company to adjust your claim.  If     you choose to hire a public adjuster, check to be sure they are licensed     with the Department and ask for references and qualifications     before retaining a public adjuster.

 

• Try to be     present when the adjuster inspects your property. You may also wish to     have a contractor present or ask a contractor to review the adjuster’s     inspection report before settling the claim.

 

• Do not feel     rushed or pushed to agree on a settlement. If there are disagreements, try     to resolve them with your insurer. If you cannot reach an agreement, the     Department can help you decide if arbitration or mediation is an option.

 

• Your full claim     may come in multiple payments. If you have extensive damage or cannot live     in your home, the first will likely be an emergency advance and may     include additional living expenses. The payment for your personal property     and any additional living expenses will be made out to you. Payments for     the structure may be payable to you and your lien holder if there is a     mortgage on your home. Lenders may place that money in an escrow account     to pay for repairs as the work is completed. If you hired a public     adjuster, payment will also include the adjuster.

 

Repairing the Damage

 

• Fraudsters often     take advantage of the chaos following a disaster. When choosing a     contractor to make repairs, check licensing and references before hiring.     Always insist on a written estimate before repairs begin and do not sign     any contracts before the adjuster has examined the damage. In some cases     the adjuster will want to see the estimate before you begin making     repairs.

 

• Do not pay a     contractor the full amount up front or sign over your insurance settlement     payment. A contractor should expect to be paid a percentage when the     contract is signed and the remainder when the work is completed.

 

• If the contractor     finds hidden damage that was not discovered in the original assessment by     the adjuster, contact your insurance company to resolve the difference.     For any disagreements that cannot be resolved, contact the Department     about your recourse.

 

Things to Remember

 

• Be aware that     most homeowners or renter’s insurance policies do not cover flood damage.     The National     Flood Insurance Program (NFIP), through individual insurance     brokers and carriers, provides this coverage separately from standard     homeowners coverage.

 

• If your     insurance company delays in responding to your claim, call the claims     department to verify if they have assigned an adjuster. Verify your     contact details, especially if you have evacuated your home. Call the     Department if the delay is unreasonable.

 

• Even after     settling your claim, if you think of items that were not in your initial     loss list, contact your insurance company. Unless the company has paid the     entire limit for the coverage of those types of items, it is possible the     company will make an additional payment.

 

• If your damages     exceed the amount of your coverage, federal agencies will occasionally     provide grants or low-interest loans to assist with recovery following     major disasters.

 

General Guidelines

 

• Please keep in     mind that in the wake of a disaster of the caliber of Sandy, insurance     companies are also experiencing difficulties, including handling the     volume of calls they are receiving. If you cannot access your property,     your insurer cannot access it either.

 

• To be sure your     claim is handled efficiently, whenever possible, make sure you have your     policy number available when you report your claim. Once you have     established a claim, make sure you use the claim number the company provides     you in any future communication to ensure accurate claims processing.

 

After You Rebuild

 

• When you     re-establish your home following the disaster, take time to do a home     inventory.

 

• Once you have completed     the home inventory, talk with your agent to make sure your homeowners or     renter’s policy is adequate to cover your new investments.

 

More Information: If you have any questions about the coverage in your policy, or if you need help with a problem regarding your claim following a disaster at your home, contact the Department at 1-800-446-7467 www.dobi.nj.gov For emergency preparedness information go to: http://www.ready.nj.gov/. For more information on flood insurance availability through the NFIP, go to: www.floodsmart.gov.

Posted: October 31st, 2012 | Author: Art Gallagher | Filed under: Hurricane Sandy, Press Release | Tags: Hurricane Sandy, Insurance Claims | 2 Comments »

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