Property Insurance

July 5, 2018 | Author: Sunil Rawat | Category: Home Insurance, Property Insurance, Insurance, Service Industries, Financial Risk
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Property Insurance

CHAPTER-1

(1.1)MEANING (1.2)DEFINITION (1.3)TYPES OF INSURANCE

(1.1) MEANING OF INSURANCE

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Property Insurance

Insurance provides financial protection protection against a loss arising out of happening of an uncertain event. A person can avail this protection by paying premium to an insurance company. A pool is created through contributions made by persons seeking to protect themselves from common risk. Premium is collected by insurance companies which also act as trustee to the pool. Any loss to the insured in case of happening of an uncertain event is paid out of this pool. Insurance works on the basic principle of risk-sharing. A great advantage of  insurance is that it spreads the risk of a few people over a large group of people exposed to risk of similar type.

(1.2) DEFINIION

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Property Insurance

Insurance provides financial protection protection against a loss arising out of happening of an uncertain event. A person can avail this protection by paying premium to an insurance company. A pool is created through contributions made by persons seeking to protect themselves from common risk. Premium is collected by insurance companies which also act as trustee to the pool. Any loss to the insured in case of happening of an uncertain event is paid out of this pool. Insurance works on the basic principle of risk-sharing. A great advantage of  insurance is that it spreads the risk of a few people over a large group of people exposed to risk of similar type.

(1.2) DEFINIION

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Property Insurance

Insurance is a contract between two parties whereby one party agrees to undertake the risk of another in exchange for consideration known as premium and  promises to pay a fixed sum of money mone y to the other othe r party on happening of an uncertain event (death) or after the expiry of a certain period in case of life insurance or to indemnify the other party on happening of an uncertain event in case of general insurance. he party bearing the risk is known as the !insurer! or !assurer! and the party whose risk is covered is known as the !insured! or !assured!.

(1.!)"PES OF INSURANCE

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Property Insurance

#$%e $nsurance& #$%e $nsurance is a contract between an insured (insurance policy holder) and

an insurer " where the insurer promises to pay a designated  beneficiary  a sum of  money (the #benefits#) upon the death of the insured person. $epending on the contract" other events such as terminal illness or critical illness  may also trigger   payment. he policy holder typically pays a premium" either regularly or as a lump sum. %ther expenses (such as funeral expenses) are also sometimes included in the  benefits. he advantage for the policy owner is #peace of mind#" in knowing that the death of the insured person will not result in financial hardship for loved ones and lenders. It is possible for life insurance policy payouts to be made in order to help supplement retirement benefits& however" it should be carefully considered throughout the design and funding of the policy itself. 'ife policies are legal contracts and the terms of the contract describe the limitations of the insured events. pecific exclusions are often written into the

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Property Insurance

contract to limit the liability of the insurer& common examples are claims relating to suicide" fraud" war" riot and civil commotion. 'ife-based contracts tend to fall into two maor categories*



Protect$on po'$c$es + designed to provide a benefit in the event of specified

event" typically a lump sum payment. A common form of this design is term insurance.



Inestent po'$c$es + where the main obective is to facilitate the growth of 

capital by regular or single premiums. ,ommon forms (in the ) are whole life" universal life and variable life policies.

Genera' $nsurance&

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Property Insurance

Genera' Insurance  is the type of insurance which covers the loss and pays

compensation against any uncertain financial event. It is often referred to as the nonlife insurance. eneral Insurance covers all aspects of loss in case of obects and one which does not fall under life insurance and is particularly done for property loss in any natural ha/ards" theft" burglary" accidents etc. eneral Insurance is often under  annual contracts but there are also a few products under general insurance policies which are under the long-term contracts. he general insurance rate is a factor used to determine the amount to be charged for a particular amount of insurance coverage" called the premium. 0isk  management" the practice of appraising and controlling risk" has come out as a discrete field of study and practice. *ese are t*e coon types o% +enera' $nsurance&

,oe Insurance&1ouses" lands and other real estate properties and hard assets are

subect to accidental risks like theft" damage" destruction due to natural disasters or  fire accidents etc. with such large investments gone into bu ying a real estate property like your home or office" the problem or risk involved is a loss of large amount of  money.1ome and property insurance protects you in managing and protecting against

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Property Insurance

these risks. he cost of a real estate property and its monetary insurance is mostly  based on the value of the already insured hard assets and also the place or location in which the assets are situated. rae' Insurance& his is intended to shoulder or cover any of the financial or any

other losses which were basically incurred by the insured while on his ourney or  travelling" be it nationally or internationally" such as mountain trekkers" cruise travellers or simply as a tourist. Auto Insurance& Any vehicle on the road" no matter how safe it is driver is" some

times bound to meet with an accident or two" which may leave it with ust a few scratches" or crash it up totally. 2ost countries today re3uire or obliged you to have an auto insurance while on road in your vehicles.If you have an accidental auto crash" a total repair could cost you a lot or a fortune. %n the other hand" a little scratch on your 'and ,ruiser may also soar up your bills to a high level.4hether or not you want or need auto insurance mostly depends on the type of automobile you own.If you have an expensive car and a little repair could worry you out financially" you should therefore decide in buying an all-inclusive and crash insurance which will protect you against any and every harm done to your vehicle. ,ea't* Insurance&  4hether you like it or not" almost always we face certain health

challenges that may cause us a lot through medicines" hospitali/ation bills and other  related expenditures. If we will not be smart and ready enough with this kind of cases then we will surely find it so hard to face sickness and other form of health problems such as therapy and many other treatments such as antibiotics treatment. F$re $nsurance&  5ire is one truly big problem that may endanger our valuables"

 properties and even businesses. 4orse it may threaten our lives and those of or loved ones. 4ell this would not be very hard unless we are ready to face such calamity with fire insurance. his will help us become more secured and ready to face fire cases.

CHAPTER:2

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Property Insurance

EFFECTS OF INSURANCE

(2.1) INSURANCE AS SECURITY TOOL (2.2) CONTRIBUTION TO AN INDIAN ECONOMY  (2.3) CURRENT SCENARIO (2.4) FUTURE SCENARIO

(2.1)INSURANCE AS A SOCIA# SECURI" OO#

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Property Insurance

Individual6s income is dependent upon the investment of his time. %ver a  period of time" he saves sufficiently to provide for the time" when he is too old to earn. 7ut no body can guarantee him this time. he concept of insurance was born. A co-operative society was created" where each member of the family contributed a small portion to provide for a possible big loss which was too big for anyone to bear. Insurance" let it be noted" does not prevent the loss to occur. It cannot prevent thievery" fire" sinking of a ship due to storm or even death of the bread winner. 5ar  from it" if they could be prevented" there would be no need for insurance. It is only the damages beyond the control of men" purely accidental" or due to fury of nature" which are subects for insurance. he factories would not restart after a fire" houses cannot be rebuilt after an earth3uake or a cycle or a motorcycle for that matter cannot be replaced after being stolen. nlike a socialist society or a highly developed capitalist society where the tate takes care of individuals who become destitute or deprived" in a developing society like ours" the tate is too poor to take up such responsibilities. he declaration of 1uman 0ights by nited 8ations similarly declares from the house top that everyone has a right to a standard of living ade3uate for health" well-being of himself and his family including food" clothing" housing" medical care and necessary social services and the right to security in the event of unemployment" sickness" disability" widowhood and other loss of livelihood in circumstances beyond his control. If wishes were horses" beggars would ride. 9ven in highly developed countries like 7ritain and nited tates where some medium of social security is available" insurance" both life and general is a thriving business.  8ormally in case of human beings" :;< of the income comes from investment of time and =;< of the income comes from savings. As one grows old" the ratio is reversed and :;< of his income comes from his savings and =;< from investment ofhis time. hat is the ideal situation. 7ut who can guarantee him the time - time to save ade3uately so as to reverse this ratio. In case of a house burnt due to an accidental fire" he does not have to go to other members of the society begging help. Insurance thus creates a society of proud

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Property Insurance

 people who know how to take care of themselves even during difficult times. Insurance is thus a tool of social security par excellence.

(2.2)CONRI-UION O INDIAN ECONOM" Insurance is the only sector which garners long term savings Insurers are increasingly introducing innovative products to meet the specific needs of the  prospective policyholders. An evolving insurance sector is of vital importance for 

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Property Insurance

economic growth. 4hile encouraging savings habit it also provides a safety net to  both enterprises and Individuals. Insurance ,ompanies receive" without much default" a steady cash stream of   premium or contributions to pension plans. >arious actuary studies and models enable them to predict" relatively accurately" their expected cash outflows. enerates 'ong term funds for infrastructure and strong positive correlation  between capital

development markets

of  and

insurance?pension sector 5or  $P to grow at @ to =;. Issue o% F$na' Po'$cy&

After the issue of cover note" policy document is prepared. It is duly stamped document which contains terms and conditions of the insurance. he policy serve as an evidence of insurance between the insured and the insurer.

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Property Insurance

,OME INSURANCE 1ome insurance is the kind of property insurance that offers insurance coverage to the homes. his insurance also gives liability protection (for accidents occurring inside the home) and also property protection at the same time for a single  premium. his insurance covers the home" its contents and personal possession. If you have suffered damage to your home or personal belongings as the result of a natural disaster you likely have many unanswered 3uestions about how the insurance settlement process works. Oeep in mind that it is a process that needs to be worked through step-by-step" but there is  plenty of assistance available to you through your insurance company and other  financial service providers.

INSURANCE SE#EMEN PROCESS

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Property Insurance

Step 1& A/@ust$n+ "our C'a$

4hen you are allowed back into your home contact your insurance company to set up a meeting with a claims aduster. An aduster will inspect the damage to your  home and offer you a certain sum of money for repairs. he first check you get from your insurance company is often an advance against the total settlement amount. It is not the final payment. If you6re offered an on-the-spot settlement" you can accept the check right away. 'ater on" if you find other damage" you can GreopenH the claim and file for an additional amount. 2ost policies re3uire claims to be filed within one year from the date of disaster. ,heck with your state department of insurance. 4hen both the structure of your home and personal belongings are damaged" you generally receive two separate checks from your insurance company" one for each category of damage. ou should also receive a separate check for additional living expenses that you incur while your home is being renovated. Step 2& *at Aout My Mort+a+eB

If you have a mortgage on your house" the check for repairs will generally be made out to both you and the mortgage lender. As a condition of granting a mortgage" lenders usually re3uire that they are named in the homeowner6s policy and that they are a party to any insurance payments related to the structure. he lender gets e3ual rights to the insurance check to ensure that the necessary repairs are made to the property in which it has a significant financial interest. his means that the mortgage company or bank will have to endorse the check. 'enders generally put the money in an escrow account and pay for the repairs as the work is completed. ou should show the mortgage lender your contractor6s bid and let the lender know how much the contractor wants up front to start the ob. our mortgage company may want to inspect the finished ob before releasing the funds for payment to the contractor. 7ank regulators have guidelines for lenders to follow after a maor  disaster. If you have any 3uestions contact your state banking department.

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Property Insurance

Step !& ,o: Do I Se'ect a Contractor an/ *o PaysB

1iring a reputable contractor to do repairs or construct a new home is critical. 4ord of mouth is still one of the best ways to choose a contractor. Also check with the area 1ome 7uilders Association" 7etter 7usiness 7ureau or ,hamber of ,ommerce. 2ake certain they are licensed and have ade3uate insurance coverage. $on6t become a victim of disaster fraud. After a natural disaster" professionals often go from door-to-door in damaged neighborhoods" offering clean up or repair  services. 2any of these business people are reputable. %thers are not. he dishonest ones may pocket payment without completing the ob or use inferior materials and  perform shoddy work not up to code.

F#OOD INSURANCE

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Property Insurance

his is also another type of property insurance that offers insurance coverage against any kind of damages suffered by the property in an event of a flood. uch type of an insurance is not very common in India as it is often covered under the home insurance and is not needed to separately adopt a policy as such. ," IS F#OOD INSURANCE IMPORANB

It is necessary to obtain flood insurance because flooding occurs more fre3uently than you may imagine. Among the natural disasters that can happen" flooding is the most common. hus" it is best to consider it as a very real possibility. iven that" protecting your assets with insurance formulated specifically to address the water damage is needed. Another reason why flood insurance must be sought is because most homeowner insurance policies do not include damage by floods. It often needs to be specified in order to apply. Also" some areas actually re3uire homeowners to get flood insurance. If the location of your property is prone to flooding" you must purchase a  policy before a mortgage loan can be approved. 1omes are often the biggest investments made by a person. 4ith this in mind" it is easy to grasp the significance as to why it needs to be protected by flood insurance.

C#AIMS

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Property Insurance

=. ,all your flood insurance agent right away" and be sure to have your insurance company!s name" policy number and contact information ready. If you cannot stay in your home due to the extent of the damage" be sure to include a way for  you to be reached away from the house" such as a cell phone" shelter" or hotel  phone number  C. 2ake an appointment for an insurance aduster to come look at the flood damage. It should be done as soon as possible so that you can begin replacing and repairing the damaged items. D. 2ove any undamaged personal items away from the water to ensure that they do not get wet. his can also help keep the area organised so that the flood insurance aduster can 3uickly see what has been destroyed. F. ake pictures of the flooded areas of the home" as well as any items that got wet. Include pictures of items that you plan on throwing away so that you can  be compensated for them. If you carpet is damaged and you need to throw it out" cut a swatch from it so that you have an example of damage that a photo might not reflect. B. 2ake a list of items that were damaged due to the water. Include the name of  each product" price and date and location of the purchase. If you are not sure of the exact information " either try to find receipts or estimates facts like  pricings. . how the flood insurance aduster any damage estimates that you may have gotten from a contractor" since these will help in getting the correct compensation to repair the damage. E.

%btain a proof of loss form from the aduster" which will serve as your  certified flood insurance claim for damages. his form is re3uired for the national flood insurance program to pay your claim" and you must file it with your insurance company no more than ; days after the flood.

@. ell your aduster if you need at least some of the payment in advance so that you can replace necessities that were lost in the flood. If you have accurate

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Property Insurance

records of what you lost" you are likely to get some money ahead of time. ou can also repair or replace items first" and then show the receipts to the aduster. Permanent or expensive repairs should wait until the flood insurance claim is finished to ensure their costs will be compensate. :. ign and give your proof of loss form to your flood insurance company once you come to an agreement on the payment to be made. =;. Oeep in touch with your flood insurance agent until the process is complete so that 3uestions can be answered 3uickly.

-OI#ER INSURANCE 7oiler insurance is that form of property insurance that compensates for  damages suffered by your home boiler or any kind of electrical e3uipment of your  house with some exceptions attached to it. 7oiler insurance is a specific kind of insurance policy that covers items related to the malfunction or breakdown of a furnace or Gboiler.H his term arises from

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Property Insurance

heating technologies using hot water and steam to effectively heat an indoor space. 0egardless of changes in heating technology" boiler or heating systeminsurance may still be a vibrant part of the residential or commercial insurance system in any of  several countries or regions of the world. ome insurance professionals and others refer to boiler or furnace insurance as Gmechanical breakdownH coverage. his type of insurance can be listed under a more general category of Ge3uipmentH coverage" especially in commercial boiler insurance  policies that cover heating as part of a manufacturing or other business process. 7oiler similar

insurance

and

infrastructure

coverage can also apply to residential or commercial insurance where standard heating systems keep the inhabitants of a building warm. 5or those who are looking at what a boiler or furnace insurance policy typically covers" the specifics of coverage vary from one policy to another. 7oiler or  heating system insurance policies will typically cover the cost of repairing a malfunctioning heating system. hey may also cover any incidental water damage" according to specific language in a policy" although water damage is often excluded in  policies. ,omprehensive boiler insurance policies might cover the costs of Gcreating livabilityH when a boiler breakdown compromises temperature in a building or indoor  space. ,A IS CO>EREDB

1ome  7oiler 0esponse offers you all the cover and support you!d receive with  boiler insurance" plus much more

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Property Insurance



Plumbing and drainage problems $amage to - or failure of - your plumbingand drainage system (where internal



flooding or water damage is likely). 7locked toilets and blocked external drains within the boundaries of your 



home (where this can be fixed by etting). Internal electricity" gas and water supply problems 9lectricity failure of at least



one complete circuit" gas leaks and water supply system failure. ecurity problems $amage to - or failure of - external locks" external doors and external



windows. Access problems 'oss of the only key that can gain access to the property - when it can!t be



replaced and means the house cannot be accessed in the !normal! way. Pest problems Infestations* wasp nests" hornet nests" house mice" field mice" rats and



cockroaches. 0oof damage udden and unexpected damage to the roof of your proper #IMI OF INDEMNI"

he

'imit

of

Indemnity

for

the

policy

shall

be*

Any %ne ,laim* A maximum of QB;; including >A inclusive of labour. Any %ne Period of Insurance* A maximum of Q="B;; including >A. nless otherwise shown below. SECION OF CO>ERS

pecific

ection

9xclusions

(Please note that this only shows ection of ,over

,over Provided

the significant exclusions and reference should be made to the  policy wording for a definitive list)

Primary 1eating

Primary

1eating

system Any claim involving boilers over 

where the system has failed or  =B years old or over [email protected]";;; btu  broken down

net

input

(E;

Oilowatt)

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Property Insurance

9xcludes replacement of water  tanks"

cylinder

and

central

heating radiators ubect to acceptance of a claim under ection B of this  policy" where your boiler has failed and is deemed by the contractor

and

us

to

be

uneconomical to repair" we shall

contribute of

an

(upon

7oiler 

 production

original

0eplacement

receipt for payment) a sum Any boiler over =B years old

,ontribution

including >A for boilers* a) up to B years old" of QB;;  b) between B years and =; years

old"

QD;;

c) between == years and =B years old" of Q=B; towards the cost

of

a

brand

new

replacement SIGNIFICAN AND UNUSUA# EC#USIONS OR #IMIAIONS

he policy will exclude claims where the incident falls outside of the scope of  cover provided by the policy wording or where this is subect to a specific exclusion or limitation. Please refer to the policy wording for full details. he most significant or unusual exclusions or limitations are outlined below. •

he policy covers emergency situations only. It does not cover circumstances more properly handled by your 1ousehold Insurer.

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Property Insurance



Please note if you engage the services of a contractor direct" cover will not apply. All claims must be reported to the ,laims 1elpline who will arrange to send a contractor.



4here it is not possible to validate your claim at the time of initial notification" you will be re3uired to leave either credit or debit card details which may be debited in the event that the cost of the call-out and any subse3uent repairs are not covered by this insurance.

DURAION OF ,E CONRAC

his is a monthly policy. It commenced from the date shown on the policy schedule and will automatically renew for a further = month duration subect to you  paying the monthly premium in accordance with your agreed payment schedule. 4here payment is not made" cover will automatically be cancelled at the end of the = month period for which you have paid.

CANCE##AION

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Property Insurance

4e wish you to be happy with the cover provided by your policy. 1owever  you have the right to cancel the policy within =F days of receiving the policy documents without giving reason. If you chose to cancel" we will refund your   premium after first (at our discretion) charging for the cover provided from the date of  commencement of the contract until the date of cancellation and any helpline costs incurred.

(3.4)RENTAL PROPERTY INSURANCE he policy used for owners of rental properties is often known as #$welling 5ire# ($P-D for houses and $P-D, for condos) although it actually covers several

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Property Insurance

 perils beyond fires. It is important to note that dwelling policies are generally not as  broad as a full homeowners policy. he #a la carte# nature of dwelling polices" however" means coverages can be customi/ed for owners of rental properties. nlike other options" coverage for personal property and certain losses must  be specifically added to the dwelling policy. $iscuss your needs with a 3ualified agent to determine if a dwelling policy is right for you. ,overages ($P-D and $P-D, $welling) •

D:e''$n+ (Coera+e A) - his is coverage for the costs to repair damages to

the rental property. 9xamples are damages to flooring" wall and ceiling coverings" and fixtures such as cabinets" lighting" counter tops and built-in appliances contained within the home. •

Ot*er Structures (Coera+e -)   - his is coverage for the costs to repair 

damage to the additional structures on your property other than the home. (,overage 7 is for $P-D and not $P-D,.) •

Persona' Property (Coera+e C) - his is coverage for your personal

 belongings located at the residence premises. ,overage is not provided for  your tenant6s personal belongings under this coverage. •

Fa$r Renta' >a'ue (Coera+e D) - his is coverage for loss of rents to you

should the dwelling you rent to others become uninhabitable" or unfit for its normal use" due to a covered loss. •

Pre$ses #$a$'$ty Insurance (Coera+e #) - his coverage provides

 protection if someone were to file a lawsuit against you" claiming bodily inury or damaged property in connection with the insured location. 'iability can protect you in situations that may be unforeseen in addition to covering certain defense costsMeven if the lawsuit filed against you is false" groundless or fraudulent.

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Property Insurance

(!.) ME,ODS OF PROPER" INSURANCE Property is insured in two main ways*

opens per$'s nae/ per$'s. %pen perils cover all the causes of loss not specifically excluded in the policy. ,ommon exclusions on open peril policies include damage resulting from earth3uakes" floods" nuclear incidents" acts of terrorism" and war.  8amed perils re3uire the actual cause of loss to be listed in the policy for  insurance to be provided. he more common named perils include such damagecausing events as fire" lightning" explosion" and theft.

(!.3)-ENEFIS OF PROPER" INSURANCE Page | 42

Property Insurance



Property insurance is basically re3uired for the financial security" it provides security in case of any loss suffered.



A maor benefit of getting your property insured is that it covers the replacement value.



he insurance pays off the losses caused by any unfortunate disaster or for the  particular cases listed on the policy.



uch insurance also covers up for the accommodation at the time of your   property being renovated.



Property insurance offers security and financial aid against any kind of   property risks like natural disaster" theft and fire.



Property insurance safeguards the financial future if certain damages occur to your property or a third party files a negligence suit for damages suffered on  property.



Property insurance reimburse for damages due to fire" theft and unforeseen calamities as well as situations that are specified in your policy.



Property insurance also includes protection for personal liability in situation where someone" such as tenant or your neighbour is inured while visiting your home or property.

(!.4)#IS OF COMPANIES PRO>IDING PROPER" INSURANCE

7aa Allian/ eneral Insurance

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Property Insurance

7harti ARA eneral Insurance 1$5, 90% eneral Insurance I,I,I 'ombard eneral Insurance I55,% okio eneral Insurance ' K  eneral Insurance 0eliance eneral Insurance 0oyal undaram eneral Insurance 7I eneral Insurance ata AI eneral Insurance

CHAPTER 4

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Property Insurance

(4.1) TERMS AND CONDITIONS OF

POLICY  (4.2) DOCUMENTS RE!UIRED (4.3) PREMIUM CO"ERAGE

(.1)ERMS AND CONDIIONS OF PO#IC" 

he first basic thing is that the property should be of the own i.e individual6s  property whose opting for the policy.



he property insurance could be of varied types*  5ire

Page | 45

Property Insurance

   

5lood  8atural disaster  7oilers 1ome insurance

hus the insurance taken by the person should specify the certain terms and accordingly the policy should be purchased. 

 8ow the next step is to specify the perils of the policy in the policy determination the type of the policy perils must be specified effectively.



he terms regarding the premium coverage.



he time period of the policy to be taken.



At last the value of the compensating money of the property at the time of  claiming i.e. actual cashes value or the replacement value.

(.2)DOCUMENS REehicle" house" commercial property

o

documents of that particular property is re3uired like agreement of house or  commercial property6s document" vehicle document. 

7ank statement of individual



Photograph of the individual

(.!)PREMIUM CO>ERAGE he coverage of premium is not an easy thing for an normal person in any policy. he premium is of two types* 

Individual charge %ther law suits for (company paying for certain pre determined terms) Rea/ t*e po'$cy

0ead your policy to understand what is included. our insurance premium is a calculation of the individual coverage in your policy" and you should be aware of each

Page | 47

Property Insurance

charge to know what you are paying for. ou should received a policy booklet when your policy started" however" you can contact your insurer to receive an additional copy if you do not have one. A++re+ate A++re+ate o% t*e tota' tota' $n/$$/ua' $n/$$/ua' an/ po'$cy coera+e coera+e

Add the individual coverage6s together. Although each policy is different" property insurance generally includes dwelling and contents coverage" liability protection and medical payments to others. 9ach category has a separate charge and the price depen depends ds on the limi limitt and deduct deductib ible le for each. each. h hee dwell dwelling ing secti section on cover coverss the structure of the property in case it is damaged due to a covered peril such as fire. ,ontents coverage insures your personal property in the event it is lost stolen or  damaged. he liability portion of your policy pays lawsuits if someone sues you for  inury that occurred at your premises and medical payments to other pays hospital  bills for people who incur harm at your property. 'ook in your policy or at your  statement and add each individual charge to get a total. 

Sutract$on o% ar$ous /$scounts&

ubtract your discounts. 2ost insurers offers a variety of discounts to property owners such as multiple policy" no smoking credit and senior discount. he multiple  policy discounts occur if you have multiple items insured with the same carrier" carr ier" such as your car and home. According to 28 money" over CD;;; house fires occur each year due to smoking cigarettes" and insurance carriers provide discounts if no one smokes on the property. he senior discount is for individual over BB years of age. 0eview your policy to determine what discounts you have and talk to your agent to determine if you 3ualify for any additional credits. C*ec9$n+ o% t*e $n a'' cre/$t score u'' +et

5actor in your credit score. Insurance companies review your credit rating to determine your property insurance premium and call it an insurance score. he higher  your credit score" the less you willpay" insurance companies do not disclose their  specific formula for obtaining your insurance score.

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Property Insurance

C#$%&' 5

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Property Insurance

(.1) C#AIM SE#EMEN PROCEDURE ,onsumers purchase insurance to return property to the condition enoyed  before a loss occurred. occurre d. Property insurance is purchased to protect a home" business bu siness or  other premises. Property insurance covers losses that result from theft" vandalism" weatherweather-rela related ted inciden incidents" ts" falling falling obects obects"" fire fire or electri electrical cal malfunc malfunction tion.. If you experience a loss" you must follow certain claims-filing procedures to ensure your   property is repaired repaire d or replaced efficiently. efficientl y. 1. Po' o'$c $cee Re Repo port rt

he first step to take in filing a property claim is to contact the police and file a report if you are the victim of a theft or vandalism. ,ontact emergency medical

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Property Insurance

 personnel if an inury has occurred on the insured premises. A police report legally establishes that a loss has occurred and strengthens the validity of your claim. In many cases" a law enforcement official will come to the scene of the loss to take your  statement. our insurance company will use the police report during the claims  process as evidence of your loss. 2. Contact "our Insurance Copany

After you have filed a police report" call your insurance company to inform it of the loss and file a claim. $o not wait to contact your company because many  property insurance policies have a time limit on claims filing. Ask your insurance company 3uestions regarding the loss such as whether the loss is covered or if you have to pay a deductible. our insurance company will open a claims file regarding your loss. hey will ask you several 3uestions regarding the circumstances of the loss and begin an investigation to determine the validity of your claim. If necessary" a  property aduster will be sent to the insured premises to further investigate the loss and to protect the premises from further damage. he time frame of this step varies depending on the severity of the loss. ome property claims take days to investigate while others take weeks or months. !. Co''ect In%orat$on

%nce your claim file is opened" the insurance company may periodically contact you to ask more 3uestions or re3uest additional information regarding the loss. It is important to collect as much information you can at the time of the loss to ensure you give the insurance company accurate information. 5or example" if you are the victim of a break in" make a detailed list of any items damaged or stolen and include the property!s value. If you have receipts of such items" make copies of them. If you have a camera" consider taking pictures or recordings of any damages and give them to your claims aduster. . Sett'$n+ "our C'a$

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Property Insurance

he last step in the claims filing process is claims settlement. he settlement amount will be based on either the actual cash value of the lost or damaged property or the replacement cost of the property. 4hether the company pays the actual cash value or the cost to replace your property is determined when you purchase the policy. ome property policies guarantee the replacement of property for an additional  premium. %nce the insurance aduster has completed the inspection of your property" he will offer you a sum of money based on your property!s value. ou will receive a separate payment for each category of damage. 5or instance" if the structure of your  home and the furniture within your home were damaged in a fire" your insurance company will cut you a check to repair the home!s structure and a check to replace your damaged furniture.

(5.2)PRE ACCI!ENT SETTLE"ENT CLAI" PROCE!URES If you are in a car accident" contact the authorities right away" especially if there are inuries or the accident causes property damage of any kind. 4hen there are damages" insurance companies typically have a claims procedure they follow to pay for repair" medical bills or other expenses. 4hile each company has its own methods" there are some general commonalities among all accident claims procedures. 1. F$'e "our C'a$

According to Allstate Insurance" the first step after a crash is to file the claim. $o this over the phone or online" or meet with a company representative. ou!ll need a lot of information when you file your claim" including any police report details along

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Property Insurance

with insurance and other information from others involved in the accident" if  applicable. 9ven though your insurance company should have all the pertinent details about your vehicle on file" you should still have your vehicle identification number  and the make and model of your auto on hand when filing your claim. ou might also need your driver!s license information. 4hen filing a claim" disclose if there were any inuries in the accident. 1ave all medical information handy" so you can provide it to your insurance company. 0eport if there were any damages to other types of property as a result of the accident.

2. Coera+e an/ Repa$rs

he claims process may vary depending on whether the accident is your fault. If not your fault" your  insurance company may do much of the legwork to assure the other  driver!s carrier handles your claim 3uickly. If it is your fault" or the other driver does not have insurance" you will have to go through your own carrier. 9very policy is different" as are insurance coverage deductibles. he deductible is the amount you have to pay out of pocket before your insurance kicks in. After  reviewing your coverage with your agent" he will most likely schedule an estimate to assess the damage to your vehicle. An agency-preferred mechanic may do this or you might get a private estimate from one or more mechanics to submit to your carrier.

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Property Insurance

%nce you have an estimate" your insurance provider will typically authori/e repair   by an approved mechanic and pay the shop directly. In some cases" you might receive a check to cover the estimated costs and have the option of working with the repair   business of your choice. If you have rental car coverage" your insurance company either will reimburse you for allowed costs while your vehicle is in for repair" or will pay the rental agency directly.

!. C'a$s A+a$nst "ou

If the accident is your fault" your insurance company will work with the other  driver(s) to investigate the accident" get estimates and pay what you owe. ou must  pay your deductible and any charges beyond your coverage.

(5.3)POST ACCI!ENT SETTLE"ENT CLAI" PROCE!URE

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Property Insurance

If you have been involved in a car accident and you need to file a claim against your insurance company or another driver!s insurance company" there are some things you can do to help yourself through the process. =. ,ontact your insurance agent as soon as possible when you know that you will  be filing a claim against the insurance company. he same is true if you were involved in an accident and you expect that the other driver(s) may file a claim against your insurance company. C. Plan for the deductible amount you will be re3uired to pay.If you are at fault for the accident then check your policy or with your insurance agent to find out how much your collision deductible will set you back. If the cost of the repair exceeds the deductible" your insurance company will cover the additional costs if they are within policy limits.If the accident was caused by another driver" your insurance company will take the lead in getting the costs of the repairs covered. hey will use subrogation or act legally in your behalf  to recover the costs of your repairs including the deductible. If the driver who caused the accident did not have insurance or was underinsured" you may have to pay the collision deductible. D. If your car re3uires repairs" you should expect that your vehicle is restored to the condition it was in ust before the accident.our insurance company may try to re3uire you to take your car to a specific collision shop" if so the insurance company must guarantee the shop!s work and assess no extra cost to you.he insurance company may be allowed to use used parts if your car is not within the current model year. ,heck the written estimate to find out the origin of the parts. If the estimate does not include details of the parts then make them rewrite it for you. If new parts are readily available and the repair  shop is trying to fix your car with used parts" then insist they provide new  parts and tell them where to find the parts. 5or older cars finding new parts may be impossible. Insist on %92 parts not generic parts. he insurance company may be able to substitute generic parts for %92 parts if it is stated in your policy. If the accident is not your fault stand strong in your insistence.

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Property Insurance

F. ry to get a rental car paid for by the insurance company. If another driver  damaged your car and you have a liability claim against their insurance" most states re3uire the other driver!s insurance to pay the rental cost of a similar  vehicle during the repair of your vehicle. If your vehicle is totalled" they may not be re3uired to pay for a rental car" prior to you receiving final settlement"  but insist anyway. It is in their best interest to avoid causing you added expense. If they are not willing to cooperate it is one more reason to seek legal council. If the accident is your fault" the only way you will be able to receive reimbursement for a rental vehicle is if you have rental car insurance covered in your policy. B. %nce you have a settlement offer from the insurance company make sure that the amount will cover the damage bill. ry to first talk to the aduster if you do not agree with the settlement offer. If you cannot come to an agreement" then talk to the claims supervisor. If you still cannot agree talk to your insurance agent if the accident was your fault. If the accident was another driver!s fault you can either consult with an attorney or take the other driver to small claims court. 2ost states have a small claims maximum in the range or ND;;;-NB;;;" so first check with the county court where the accident occurred to find out the limit. %nce you accept the settlement you typically have at least D; days to report either a problem with the settlement covering the expenses or additional damage caused by the accident that the service shop did not repair.

ANNEURE

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