After the summer storms that have struck many parts of the country in recent weeks, it is often easy to see what insurance companies can and cannot do in such emergencies. Contains a lot of disgruntled consumers.
For example, a car that is submerged may not be insured.
“Services vary widely from insurance company to insurance company,” said J. Robert Hunter, insurance director for Consumers Union of America. “If the engine is involved, I’ll ask for a total write-off.”
Comprehensive coverage
However, many older car drivers may have canceled their fully comprehensive insurance to save on car insurance costs. And when they’re dealing with the flood, they’re really stuck.
“If you want to protect your car from flooding, you need a comprehensive policy,” said Scott Hallman, media relations director, Insurance Information Association, a leading insurance company offering property insurance for homes and cars. I’m going.
Wholeman pointed out that his father stored old trucks in a very rural area of Kansas. He only took out liability insurance for the truck, it wasn’t fully comprehensive insurance. However, it was a vehicle that was only used occasionally, and even if the truck was irreparably damaged, the family had no trouble.
He said that if there is a flood or other problem, careful consideration must be given to what can be done if the vehicle is not covered.
“What do you prefer? Do you have a completely new car payment? ”He said.
Comprehensive coverage covers a wide variety of accidents including theft, tornado-like natural disasters, floods, fires, windthrows and vandalism.
Again, your full cost of buying a new car is not covered.
Allstate states online, “Comprehensive coverage is limited. This is the maximum amount the policy will pay for an insured loss. If the vehicle is flooded, the comprehensive insurance is written off up to a value for the (so-called “cash value”).
In principle, drivers can exclude fully comprehensive insurance if the value of their vehicle is lower than the cost of such insurance. However, if you rent a car or if your car loan is not paid back, you will often not be able to withdraw this coverage.
What to do to file a car claim
Consumer Federation of America’s insurance expert Douglas Heller thinks that lenders and lenders need comprehensive insurance coverage when renting a car or yet to take out a loan. ..
According to the 2020 National Association of Insurance Commissioners Auto Insurance Database Report, which uses 2017 data, approximately 78% of auto policyholders nationwide have comprehensive insurance coverage.
In Michigan, nearly 86% of policyholders say they are inclusive. And most people have to pay a deduction.
According to Heller, particular caution is required if a car or truck is hit by a storm, which can lead to problems with the operation of the vehicle and injuries from broken glass or branches.
Record the damage with a photo or video from a safe distance.
If the damage is severe, especially if the engine is damaged, you will likely be billed for a total loss of the car’s present value minus the deductions, Heller said. In this case, the insurance usually takes over the end-of-life vehicle.
He also said consumers need to ensure that insurers cover all costs associated with buying a new car, including taxes and fees related to ownership. In addition, any annual vehicle registration fee (registration fee) paid for the destroyed vehicle must be reimbursed on a pro-rata basis.
The insurance company responds to requests for information. But he said it was also very clear that you expect the full amount of your claim to be paid.
If you think your insurance company is downgrading your entitlement or cutting back on repairs, get a second opinion from a trusted auto repair shop, Heller said.
“If the car is completely lost, be prepared to provide evidence to support your assessment of the car’s worth,” he said.
Check the market value of the car you are driving and the vehicle documentation (photos and service documents) before the damage occurs.
“If an insurer has difficulty paying the full amount of the damage, it has to file a complaint with the insurance regulator,” said Heller.
In some cases, consumers should consider seeking legal counsel if the company fails to pay a fair claim.
What happens to what I’ve lost underground?
People often think they are the target of flood damage when they are not. Many people can only see the complexities of coverage up close in the event of a major flood.
When you find an insurance policy, the first step is to take the time to review your insurance policy and discuss what the agent covers. It is a good idea to have your policy number and other relevant information on hand.
Experts say it is best to let your insurance agent know if your home or other building is flooded and see what coverage is available. Don’t necessarily assume that the damage was caused by the flood.
A Michigan tip states: “Consumers simply state that the damage was due to flooding, as additional causes of flood damage, such as flood damage, were caused by flooding. Shouldn’t be “from insurance and financial services.
What are good first steps?
Don’t wait for the basement to be cleaned. You want to try to clean and protect your property before you can even contact the insurance company.
Take photos and videos of your damaged property, but be aware that many of your personal effects may not be covered. Nevertheless, the loss must be documented. Some experts recommend that you do not dispose of expensive items until your insurance company tells you to.
The immediate goal after a disaster is to protect assets and prevent further problems such as mold growth. Please keep the records and receipts of the purchased materials to protect your property.
Experts say they want to break into or cover damaged windows and roofs, or replace broken locks as soon as possible to minimize future damage.
Here’s how to keep it from peeling
Another unfortunate reality of any crisis is that rip-off artists try to push “all the way” because they happen to be in the neighborhood.
Specifically, the Better Business Bureau warns, “Most building contractors obey the law, but be careful letting strangers inspect your roof or anywhere else in your home. Unethical contractors actually get the job. Can cause damage. “
And the BBB warns that you might think you’re dealing with a local business when it isn’t actually.
From time to time, so-called storm chasers offer local construction companies to pay a reasonable amount in order to use the company’s established name, reputation, and phone.
“They pretend to be local businesses, collect insurance and move on, and real businesses deal with unfulfilled customers due to poor build quality, unfinished jobs, or unfulfilled warranties. I’ll leave it to you, ”said the BBC.
Understand flood protection
According to a survey by the Insurance Information Association from July 2020, around 27% of homeowners nationwide have flood insurance, a record high. This is an increase from 13% in the 2018 survey.
In addition, 24% of respondents in the Midwest say they have flood insurance.
However, the same study suggests that the latest national numbers are higher than the National Flood Insurance Program estimates, “What is homeowner flood compensation and how does it work?” You may not have a basic understanding of what it is. “
The transactions are as follows: Flood damage is not covered by the usual household and landlord insurance.
However, certain insurance policies exist, including federal flood insurance, and homeowners may have taken out to cover flooding and water and sewer backlogs caused by storms and other natural disasters.
The National Flood Insurance Program offers two types of flood insurance. Building assets that cover the actual house, electricity, plumbing, etc., and personal assets that cover the inside of furniture, clothing, etc. The NFIP recommends purchasing both types of coverage.
According to experts, it typically takes 30 days for Federal Flood Insurance Program compensation to take effect. However, there are a few exceptions, e.g. B. Obtaining flood insurance while creating, increasing, extending or renewing a mortgage. Or if you change the insurance coverage of the flood insurance in your insurance contract extension application.
The National Flood Insurance Program states, “A single inch of water can cost a house $ 25,000.”
Of course, the cost can be low or high depending on the home.
“People are better educated that they are at risk of flooding even if they are not in the flood plain,” said Hallman of the Insurance Information Association.
After the flood, your car and basement may not be insured. Therefore | Companies
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