Water damage and mold are words that no homeowner wants to hear. Luckily, there are types of insurances that can cover such losses. Recently in the news, there has been speculation that insurance claims have spiked and for no good reason at all. The real question is, who decides what a good reason for an insurance claim? We take a look at each piece to this puzzle and analyze whether or not this speculation is one sided, or all facts are being considered.
First, let's examine what constitutes as a good reason to make an insurance claim. Should homeowners only be able to make a claim in the event of a large natural disaster such as a hurricane, or, should they have the freedom to make a claim if they have a plumbing leak that could potentially cause more damage that previously mentioned hurricane? What if the plumbing leak flooded their entire first floor and the hurricane only caused a minor roof leak? These are the factors that should be considered when all parties including the homeowner, insurance company, and contractor, assess damage and decide if a claim should or should not be made.
In the featured video below, News 9 reports on a sudden rise in insurance claims featuring Citizens Property Insurance and highlights a bad experience of one set of homeowners.
The purpose of the Assignment of Benefits (AOB) is to give the homeowner the complete right to choose what contractors work on their home and to ensure repairs and damage control will begin in a timely manner. You would hope it is easy to trust contractors that are presenting homeowners with an AOB, but unless you already have a trusting relationship with them, you really can’t be 100% sure, right? There may be companies that abuse the power of an AOB, but you must not let those companies hinder the reputation of all companies that use an AOB because it is used to benefit the homeowner when they are faced with damage and a claim needs to be made. In any given industry you would assume that there are those who have bad experiences and those who have GREAT experiences. Luckily, there is something homeowners can do to safeguard themselves so they don’t repeat the similar outcome as we saw in the video and that is EDUCATION.
One way to ensure you are not being deceived by your insurance company or contractors when you have water or mold damage to your home, is to understand all factors that are involved when making a claim. These 5 factors are:
· Know your insurance policy
· Know your rights
· Research your contractors
· Get familiar with your state’s insurance claim laws
All homeowners should have a complete print out of their insurance policy in an easily accessible, safe place. Homeowners should also make sure they know their coverages in detail, especially in the case of an emergency. Your rights as a homeowner are very important to also be aware of. This way, you are less likely to be taken advantage of. Before a catastrophe such as water damage, or mold, have a ready-to-dial contractor you already built trust with. Have them input your information into their system so that if and when there is a hurricane or major plumbing leak, you are already in the system and you don’t have to waste time going through that sometimes lengthy process. Also, check your contractors licensing and online reviews. This will give you real life experiences of the company you're choosing to work with and provide you with a sense of security when you know they are properly licensed and insured. Knowing your state’s insurance claim laws can be very helpful not only when you need to make a claim due to damage, but also when you are shopping for your insurance policy. This way, you will know certain limits and regulations related to insurance claims. Document any and all claim related damage of your home. When your home is in tip-top shape, take the before photos. Take photos of ceilings, inside of cabinets, floors, and anywhere you have plumbing. If you find you have mold or water damage, take multiple photos of the damage and date the photos. By following these 5 pieces of advice, you will be more knowledgeable and prepared in the event of water damage and mold related claims.
Remember, knowledge is power and not all contractors are the same. The AOB can be very beneficial to homeowners especially in an emergency situation. For more information, view our blog page and website.
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