Step1
I would first like to share that I am writing this article because it has taken my insurance carrier over a year and a half (over 1.5 yr.) to settle our claim. I realize that there will be many other people who experience a tragic loss and that they need somewhere to turn, like we did, during our tragedy.Also, the more insureds know about the process, the more they will be able to fight against unscrupulous insurance companies.
You will need to determine if you need a public insurance adjuster. Before our loss, I had never heard of public adjusters. There are companies known as "fire chasers" that let me know that they would help with the contents portion of our claim for our loss. The fire chasers found us through a public records search (by way of contacting family members who lived in another city). The "fire chasers" came out to our hotel room (in hopes of getting us to let them conduct the repairs on our home) and spoke to us about their conducting repairs versus the insurance company's recommended vendor conducting the repairs. They shared the ins-and-outs of using our insurance company's vendor. The "fire chasers" shared credible information to consider.
I must share this information with you to provide a glimpse into the chaos that follows. Then, you will be prepared to follow the steps to survive insurance companies.
I was told that when you have a large claim not to expect a good friend to be there, not to be in good hands, and not to look for a good neighbor or friend to be on your side. Step #1, you will have to decide that for yourself.
Step2
Start a log. On your log, have a section for who you talked to, at what number, the date and time you spoke to the person, and the purpose of the call. Additionally, start a log for all expenses such as travel for things connected to fulfilling your obligation under the insurance company's policy.Keep all receipts. You will need them for reimbursement of actual replacement cost of items purchased. Further, you will need receipts for any demands that your carrier has assessed to you.
Keep four files: one for receipts, one for your attorney, one for your adjuster, and one for communications (bids, requests, etc.).
Step3
If you have a large claim, unless you have about seven (7) or more older children to assist you, consider hiring a qualified public insurance adjuster. I have written an article on hiring public insurance adjusters.Do not be concerned if they (public adjusters) earn $10K, $20K, or more from your claim. You will receive more money than you could have attained without their assistance.
For large claims, I cannot stress strongly enough that you need an experienced public adjuster.
Step4
Before you reached this point, you must have already been insured with the proper coverage for your additional living expenses, building, and contents of your policy for your claim. Hindsight is 20/20. However, if you are reading this article, you and all your friends, family, and co-workers should get your policy coverage resolved before a tragedy occurs. Step5
Also, ensure that you have pictures of your belongings and download them to a site, such as Google, so that if there is a loss, your pictures will be preserved digitally. (I've learned this from 20/20 hindsight.) Step6
But, perhaps you are like we were, not well-insured and at a loss as to how to proceed. If this is you, you'll have to start at this step (and still consider the above steps).At the beginning of your claim, you will be given advance money. This amount will depend on your overall coverage and fairness of your insurance adjuster. It could be $1,500 to $10,000 (or more). Your insurance company's adjuster may say it is part of the contents money or additional living expenses.
You will likely need clothes, food, and a place to stay (especially if Red Cross has not been able to assist you with lodging your first few days). Purchase the minimum of what you need. In our situation, I home schooled so we lost our home and school. I had to purchase substitute curriculum which greatly reduced our initial advance check.
Step7
Here's a repeat if you started where we started after our tragedy.Hire an experienced public insurance adjuster for large claims. I have included links below for Ohio adjusters. There should be a list for every state. We had an adjuster from one state and an attorney from another due to the circumstances of our claim.
Do not allow your insurance company to intimidate you because you hired a public insurance adjuster. Your insurance company's adjuster is there to "minimize" your claim. A public adjuster is there to "maximize" your claim. Always keep this in mind.
Step8
Seek professional services from an experienced attorney. Pay twice the retainer fee requested by the attorney. If you're up against a really big insurance company, consider putting down three times the retainer.Although you have other expenses, it is better to have excellent representation than no representation and no money. People are very charitable, especially if you attend a church or if you are part of a social group. As long as you have clothes and food, retain a qualified attorney. Your insurance company will pay for the rest of your needs (through additional living expenses).
Step9
Do not stay with relatives (unless you do not have additional living expenses as part of your policy). Aside from ruining familial relationships, you are reducing your standard of living. Ensure that you are placed in like kind and quality lodging. Did you have a house with a two car garage? Then, your insurance company is obligated (if you have additional living expenses) to provide like kind and quality living quarters with a garage. For example, we had to ensure that we had at least three bedrooms. A two bedroom place was available through our insurance company's preferred vendor; however, through a vendor we found, there was an immediate opening for a three-bedroom unit for us. Our home had six bedrooms. Our insurance company saved placing us in the three bedroom town-home (which was a reduction in our standard of living). Our insistence was not unreasonable as our children needed separate sleeping areas due to their ages. Step10
Stop paying utilities at the place being claimed. Have the utilities shut off. Stop paying for trash services, waste disposal services, etc. Stop paying all unnecessary bills. Did you have internet? Have the service contract delayed. For example, we had DirecTV. Our contract was placed on hold for nine (9) months. Otherwise, we would have had to pay them each month or risk ruining our credit with a negative report from them. Step11
For any items that you do not have pictures of, or other documentation, seek affidavits from people who will go to court to support your ownership of items. Contact your banks, credit card companies, and places you shop for copies of receipts. Although I did not have a picture of my flute, I had a company send me a copy of a receipt where I purchased a book for my flute.Remember that many banks do not have records past five (5) years.
Many of our items purchased were BK (before kids). This is natural for many parents. Over the years, it is very difficult to maintain records on items purchased BK. Ensure that you take pictures and download them to the internet.
Step12
Now that you are settled, for about six (6) months in a place covered by your additional living expenses, you can focus on compiling your contents list. Your public adjuster will not tell you how to complete the list. I did not know how to complete the contents list as well. The public adjusters will go out to the residence; however, there will be many items destroyed by fire. There is no way to expect your public adjusters to know what was burned up.We were advised to make a list before our adjusters were permitted to go in and inventory our contents. Even though we compiled our list soon after the fire (within three months), we still think of items today that we forgot to put on the contents list.
We followed the same procedure our insurance company's adjuster used for contents. You may consider waiting for your insurance company to submit their list prior to your submitting your list.
Step13
Things may turn ugly with your carrier. They may demand a "meeting" with you or "EUO" (examination under oath). Sometimes these are tactics to intimidate you or to reduce your claim payout. Your experienced attorney will advise you on how to proceed with submitting to an EUO or a meeting. If your policy does not require you to participate in either, you will be advised not to go; however, most policies include a requirement for you to participate with assisting your insurer. Step14
Be prepared to continue making payments - even though you should not have to - on your house (car, etc.). Some mortgage companies have foreclosed on home owners whose homes were damaged and the court has ruled against the companies for such behavior. Your attorney will best advise you on how to handle payments on destroyed property. It is possible to delay such proceedings in court when the company knows insurance payments are pending. It is a grave injustice to continue paying hundreds or thousands of dollars on destroyed property because the insurance company is failing to settle a claim. Unfortunately, if you file a suit, you will not receive further benefits. It is most likely cheaper to pay your former bills than to have to pay your bills and new expenses (because your insurer stopped payment when you filed a suit/complaint). Step15
In our experience, our insurance company asked for similar documents numerous times. Additionally, they asked for documents that incurred a cost. We provided our insurance company with an invoice. To date, our insurance company has not paid for the documentation that they requested. (I will keep you posted on this development.) We did not believe that it was our obligation to pay for an invoice that they wanted (that they may later deny reimbursing us for). Step16
Your claim has been submitted through your public adjuster, your attorney is standing by for meetings and an EUO. You've received some advance but you're waiting.That's what you must keep on doing. Wait. You have to allow your insurance carrier to demonstrate bad faith. Has the company continued to file for their extensions? Has your insurance company communicated to you what they are doing and what they need from you? Has the company been volatile toward you? Did they become adversarial? Have they made unreasonable demands (such as a short notice for a meeting the day before or after Christmas)?
Document all such behavior that is adversarial to you and your family.
Step17
Either your carrier will make an offer after all their delays or they will deny your claim. Your attorney will advise you whether to file a civil case for a bad faith claim. Ask your attorney if he/she will continue on the case on contingency or retainer. If your attorney advises he/she wants to continue on retainer, they do not believe that they will win the case. Once you pay them your money, it is gone. Consider seeking another attorney or whether you want to proceed on a retainer fee basis. Sometimes a lawyer does not have confidence in winning the case so they ask for a retainer for bad faith insurance cases rather than taking the case on contingency. Take this into consideration when making your decision on how to proceed. Step18
If you are reading this article, it is unlikely that you would elect not to pursue the money owed to you. Your professionals will present a well-documented claim and an effective representation at your meetings/EUO. This will be to your insurance company and/or the court during a bad faith civil trial.Have patience and let your professionals work for you.
Step19
Although there have been, and continue to be, many delays with our insurance claim, it has allowed us to grieve our loss and make decisions for our future. Had our claim been resolved within two to three months, I believe that we would have made decisions that were not in our best interests.Use your insurance company's delays to your advantage. Take time to grieve. Then, take time to plan. Always keep your "eye" focused on the goal - payment of your claim. It will come, eventually. And, when it does, you will reap the benefits you have paid for to your carrier.
Step20
Grieve your loss. In our case, we lost a deceased's heirlooms, our home, and our school. I also lost my beloved parrots that were to live over 60 years. Additionally, we have made a major move. These type of major life events must be carefully addressed to handle the "stress" in your life from these events. If you look on the list for major life stresses, our family has experienced several of them. I wish anyone (going through what we've endured) a claim process that remembers you paid your insurance premiums on time, month-after-month. 