HO insurance settlement process

by Guest » Thu Dec 10, 2009 05:13 am
Guest

Dear friends, is it possible for you all to throw some light on the HO insurance settlement process?

Total Comments: 27

Posted: Fri Dec 11, 2009 06:00 am Post Subject:

It's quite natural for all of us to inquire about the HO settlement process once we'd suffer a loss in terms of property or personal belongings caused due to a natural disaster. I guess it's a detailed process which requires a careful consideration of all important factors associated with the mishap. So, it requires time and assistance from your carrier and other financial aides.

Posted: Mon Dec 14, 2009 07:44 am Post Subject:

The first thing that comes to my mind is your interaction with your claims adjuster. As you know an adjuster's job is to inspect the house, evaluate your claim and then offer a sum of money towards the repairs.

You may choose to accept an on-spot settlement offer initially and then pursue it once more if you'd discover other damages later on. But I guess, you have to file the claim within an year.

Posted: Tue Dec 15, 2009 01:47 am Post Subject:

My guess is that the type of claim would ahve a pretty big impact on the process that's followed. For example, a burlary claim will be different to a fire one.

In most casesthough your contact will be with an assessor/adjuster first and foremost.

Posted: Tue Dec 15, 2009 09:33 am Post Subject:

You may choose to accept an on-spot settlement offer initially and then pursue it once more if you'd discover other damages later on.


Make sure you know the settlement terms clearly. You'd probably get separate checks for damages done to the structure of your home and for the damaged belongings. You should also get another check for your living expenses while the place gets renovated.

Posted: Wed Dec 16, 2009 03:03 am Post Subject:

You'd probably get separate checks for damages done to the structure of your home and for the damaged belongings. You should also get another check for your living expenses while the place gets renovated.



Really? I have never seen a carrier issue seperate checks for that.

Posted: Wed Dec 16, 2009 05:52 am Post Subject:

A check has to be endorsed by the mortgage co. or bank. The rights of the lender are equal towards the insurance check. This is due to his financial interest towards the property repairs. Money is initially put at the escrow account and distributed as the repair proceeds.

Posted: Wed Dec 16, 2009 07:08 am Post Subject:

Really? I have never seen a carrier issue seperate checks for that.



Any moderate to large losses always have multiple checks issued.

Usually:

1. Check for ACV structure
2. Check for ACV contents
3. Check for ALE
4. At least one check for RCV balance (maybe more)
5. Usually more then one check for RCV balance for contents depending how the insured sends in receipts.

There are also could be a check for an advance (usually large losses).

The real answer to the OP's question depends on the loss suffered.

Posted: Wed Dec 16, 2009 02:17 pm Post Subject:

Finished a fire last month. Besides the payoff, everything was in one check. Same thing for a barn that collapsed during a storm this summer, one check.

Posted: Thu Dec 17, 2009 10:56 am Post Subject:

Besides the payoff, everything was in one check.


Do we suppose it varies from one carrier to another?
Or is it that the payment procedure varies depending on the nature of settlement?

Posted: Thu Dec 17, 2009 12:02 pm Post Subject:

Do we suppose it varies from one carrier to another?

ABSOLUTELY!

Or is it that the payment procedure varies depending on the nature of settlement?

ABSOLUTELY!

When I handled HO claims, it was common place to issue more than one draft. Just as Das laid out. As an example you can't hold an ALE payment until all the numbers are in on the claim...If you have a claim that includes different coverages (ie dwelling, PP, ALE)..I'd pay the PP when the proof of loss was in and reviewed, then that part was done, then when the dwelling info was in, the ALE as it was needed etc.

Add your comment

Image CAPTCHA
Enter the characters shown in the image.