You return from work to find water leaking out from beneath the door. You feel your heart in your throat as you open the door and see the water gushing out. There must be three or four inches of water in there.
The first thought that comes to you is to find that leak and stop it now. That makes sense. If you can find the leak and are able to turn off the valve at the leaking location, do it! If not, you need to turn off the water line that supplies the whole house until a plumber can fix the leak. But now what do you do?
I am often surprised to find that my office receives the first phone call after a water leak is discovered. It also happens immediately after or even during a hailstorm. The idea that nothing else can happen until the insurance agent is notified may stem from those commercials showing the insurance adjuster arriving at the scene before the fire truck has its hoses rolled away. It is a nice image and looks awfully neighborly, but it isn't a practical expectation in many respects.
In a storm for instance, hundreds of houses may be affected.
Upon notification that a loss has occurred, an insurance company has specific duties that it must meet, such as beginning the investigation, specifying what information is needed from you, determining whether the claim is payable or will be denied and so on. It shall do these things within 15 days of receiving notice of your claim unless there is a need to extend that time. If so, you will be notified as to the reason.
As an insured, you have certain specified duties after a loss. You are to notify the police if a law has been broken (i.e.: if a theft has occurred); take appropriate actions to protect the property from further damage. This can mean making temporary repairs to cover a hole in the roof to prevent further rain from entering, or to stop a leaking pipe upon discovery and to remove unharmed property so that it can avoid damage.
In the case of wet carpet, it should be pulled loose from its tacking, picked up and the pad removed. Not doing so may cause severe moisture damage to carpet, home and furniture.
If the homeowner does nothing while he waits until the adjuster can visit, the insurance company is within its rights to limit the settlement to such damage as was caused by the initial incident only, and leave the insured liable for that which was lost due to his indifference or inattention. The good news is there are several local companies that take care of damage abatement and will answer emergency calls to handle such losses.
Doing some of the necessary repairs yourself doesn't mean you won't be compensated for the damage. The work and supplies should be noted in the loss settlement and may be paid at the normal contracted hourly wage.
By taking care of your insured property early to avoid further damage you not only lessen the total loss and heartache, you can also help to get your life back to normal a lot sooner. During your first call notifying of the loss that occurred, be sure to discuss with the insurance agent or company representative what actions you can take or repairs you can make to get things moving quickly.
Russell Janecka is a Certified Insurance Counselor. He is the owner of Janecka Insurance Agency in Victoria, and serves on the board of directors with Germania Insurance Companies. (361) 573-4475 e-mail: info@jiavic.com
