4 months ago ·
by Donna ·
There is a lot of great information about insurance. However, there are also a lot of insurance myths. For example, many people think that they will have to pay more for insurance if they drive a red car. They may also think that their belongings are covered by their landlord’s insurance if they live in an apartment. That is why it is important to separate the fact from the fiction.
Myth: Your Insurance Will Increase if You Have a Red Car
Fact: This is one of the most common insurance myths. The color of your car does not have any effect on the amount of money that you will spend on car insurance. The safety features of your car as well as the make and model will determine how much money you will have to spend on insurance.
Myth: If You get Into an Accident While in a Rental Car, Then It Will be Covered By Insurance
Fact: Rental reimbursement will not automatically cover the accident. It is a form of insurance that you will have to purchase separately.
Myth: You Will Not Have to Make any More Car Payments if You Total Your Accident
Fact: The value of a car can depreciate quickly. In many cases, a car is worth less than what a person owes on the car. There is a type of insurance called loan/lease gap insurance. It will pay the balance of your vehicle if you total it, and it is worth less than what you owe on it.
Myth: Your Landlord’s Policy Will Cover Your Vehicle
Fact: Your landlord’s insurance will pay for damages that are done to the structure. You will have to get a renter’s insurance policy for your belongings.
Myth: The Market Value of Your Home is the Maximum Homeowners Insurance Coverage That You Need
Fact: The cost of rebuilding a home is usually more than the market value. You will not only need to consider the cost of your home, but you will also need to consider the cost of labor. You will also need to consider the cost of construction.
Myth: Floods are Typically Covered by Home Insurance
Fact: Floods are not covered by your home insurance policy. You are required to purchase a separate policy if you live in an area that is prone to floods. Even if your area is not prone to flooding, it is still a worthwhile investment.
Myth: You Will Get New Belongings if Your Old Ones are Destroyed
Replacement Cost Value and Actual Cash Value are not the same. If your belongings are damaged, then you will need Replacement Cost Value to get new ones. Actual Cash Value will cover what the belongings are actually worse.
Myth: The Stated Value of Your Scheduled Items is What You Will be Paid
Fact: If you have jewelry or other high-value item, then you may only be reimbursed up to what the current Replacement Cost Value is. The stated value is not a guaranteed amount.
Myth: Your Car Insurance Will Cover You the Entire Time You Work for a Ridesharing Service
Fact: There is a small gap between the time that your car insurance coverage ends and the ride sharing coverage begins. For example, you turn on your ridesharing app and are looking for passengers. You may not be insured until you get a passenger. Every ridesharing company has a different policy.
Myth: There is no Need for an Insurance Agent
Fact: An insurance agent can help you get the best plan for your needs and budget.
5 months ago ·
by Donna ·
Making a claim against your auto or homeowners insurance will likely trigger a visit from claim adjusters. The adjuster acts as a go-between tasked with the responsibility of gathering information and reporting back to the insurance company for processing. Most adjusters in the modern era don’t have the authority to settle claims on the spot.
Settlement amount determinations are normally made by experienced claims reviewers employed by insurance companies. Since those reviewers are not capable of visiting every customer making a claim, insurance companies use adjusters to do the work. Claim adjusters are often contractors offering services to multiple insurance companies. On rare occasions they may actually be employed by the insurance companies they represent.
Auto Insurance Claims
The specific things claim adjusters look at differ depending on the types of claims being made. In the case of auto insurance, the adjuster begins by gathering information about the accident in question. He or she will want as many details as possible. The adjuster will want to know when the accident occurred, who was involved, the results of the accident, etc.
All of this preliminary information can be gleaned from interviews, police reports, and DMV accident reports in states that keep such records. An adjuster will sometimes review these records with the customer.
The adjuster’s investigation may require additional information as well. For example, adjusters may request access to medical records and wage information on accident claims that include personal injury damages. Even medical bills might be requested during the investigation.
A big part of the claims process is determining whether or not what the customers says happened is legitimate. This isn’t normally a huge problem for auto insurance, but fraud does occur from time to time. Adjusters are tasked with uncovering as much information as possible that might indicate a fraudulent situation. A final determination is ultimately made by the insurance company’s expert reviewer.
Homeowners Insurance Claims
When an incident involves homeowners insurance, the claim adjuster has to look at an entirely different set of data. At the top of the list is the actual damage being reported. Claim adjusters want to know what caused the damage, how much damage was actually done, and if any of the observed damage can be attributed to something other than what was reported by the customer.
For example, an insurance company will not be keen on paying the full value of a new roof if some of the post-hurricane damage cited actually existed prior to the storm. It’s up to the adjuster to sort out how much of the claimed damage is related to the named incident as opposed to other damage that previously existed.
Another part of the adjuster’s job is to determine liability. In short, liability describes how much the insurance company is required to cover based on the terms of the policy in question. The insurance company might not be liable if it turns out that a customer’s violation of the terms and conditions of that policy led or contributed to the damage.
Finally, the claims adjuster will look at the totality of the damage in question. This may imply damage to contents, other buildings on the property, etc. That peripheral damage will be considered by the insurance company in an attempt to come up with a reasonable settlement.
Fairness and Protection Are the Goals
The two most important goals of the adjuster are to protect the interests of the insurance company and be fair to the customer. This is a fine line to walk. A good adjuster wants the customer to be fully compensated as much as the terms of his or her policy allow. At the same time, the adjuster must protect the insurance company against inaccurate, inflated, or bogus claims.