5 Facts About the Insurance Claims Process

2/25/2021 (Permalink)

Mold removal services in South Whittier, CA.

Here Is Everything You Must Know About The Process

After any disaster, both you and your insurance company want you to return to business as quickly as possible. However, you should know a few things about the insurance claim process to make this happen. 

1. Your Initial Payment Isn’t Final
In most insurance claim cases, an adjuster inspects the damage and offers you an amount of money based on your policy. However, this first check is typically an advance to help you start rebuilding and hiring a restoration company, such as SERVPRO.

2. You Can Receive Multiple Checks
Between your structure and your reported inventory, you can receive two checks. Additionally, if you can't operate your business during repairs, you could receive lost income checks. If you purchased a separate flood insurance policy and the damage came from a flood, you could receive another check for this.

3. Your Lender May Receive Part of Your Payout
If there is a loan out on your site in South Whittier, CA, then your lender will get a payout as well. This is because your lender will typically ask to be included in the insurance policy, and they receive payment for any situations that arise in the structure. Since they are your co-insured, your check may be split between you and your lender.

4. Your Contractor Directly May be Paid Directly
A qualified disaster remediation company may ask to work with a client's insurance company directly. However, before permitting them to file your insurance claim, make sure you read the document and avoid giving them your entire payout. If in doubt, ask your agent for help. Assigning your claim to your contractor can remove you from the payout entirely.

5. Your Business Interruption Check Is Written to You
Your lost income check is not related to your structure. Therefore, make sure this is written to you rather than your lender. This covers your loss of income and additional expenses from the disaster.
Dealing with an insurance agent and the claims process can be taxing. However, if you know more about the process, you can help it go smoother.