News

Making your home insurance claim

FOLLOWING THE PASSAGE of Hurricane Ivan, many Jamaicans who had insured their houses against peril such as the damage caused by Hurricane Ivan are now busy trying to put the pieces together.

In that process of putting things together, the home owners have to make applications to their various insurance companies in order to secure funding to effect the necessary repairs. This week, Legal Eagle will focus on the steps to be followed in making your home insurance claim.

The first order of business after Hurricane Ivan is to mitigate your loss. Therefore, wherever you can do repairs to reduce further or greater damage, you have a duty to do so. Mitigation of loss is always very important in any insurance claim and it would not be surprising if the insurance company refuses to pay for damages that could have been mitigated.

The second step is, if possible, take pictures of the damaged section of the house or items of furniture. This is encouraged by the insurance companies.

Step three is to secure an estimate of repairs from a qualified and competent workman/contractor who is likely to do the repairs. The workman/contractor must ensure that careful inspection of the damage is undertaken by him, and thereafter his estimate of repairs must be comprehensive. A written estimate must be given to the home owner who must now proceed to the next phase.

Visit insurance company

The fourth step requires the home owner to visit the insurance company with the estimate provided by the workman/contractor and complete the requisite forms. Home owners who have mortgages may seek advice directly from the mortgage companies since the arrangement for insurance of the house might have been made by the mortgage company. In all circumstances, your estimate of repairs must be in hand.

It is my understanding that if you wish to make a claim on your insurance company, and you have not paid up all your premiums for the year, you will be required to do so before the claim is processed. Also, the average clause, where necessary, will be applicable, where for instance, you have insured your home and or/contents thereof for half the value of the house, say $2,000,000 when your house actually values $4,000,000. If your repairs amount to $1,000,000 you would only receive $500,000 from your insurance company.

Send assessors

Step five is that the insurance company will send its own assessors/inspectors to visit your premises and view the damage complained of. If possible, try to be at home for this visit so that you can point out and explain as much as possible. In most cases, the assessor/inspector will be dispatched within three to five days after your visit to the insurance company, if everything is in order.

The final step is for the assessor/inspector to make his report to the insurance company and for the insurance company to determine an appropriate sum for repairs or replacement, in keeping with your insurance policy. Thereafter, a cheque will be made in keeping with your claim and/or the assessor's report. This cheque, I understand, is usually ready for pick-up within five to seven work days.

Keith N. Bishop is an attorney-at-law with a general practice.