insurance claim payments are not generally known to people who file claims !. Often, when an insured has a loss of significant size, such as a flood, tornado, wildfire, hurricane loss or a major water loss, an advance of part of the expected settlement issued by the insurance company. This situation happens frequently when a company has a loss and money up front.
It is a common and accepted practice for the insurance company to issue an advance in this type of case. Be aware that there is nothing in the standard home insurance policy that deals with the progress. It’s usually just a courtesy that the insurance extends to the policyholder.
However, they usually do not have to do it. You have to ask for the advance.
Here is an example. Joe Smith’s house is struck by lightning, and a fire damage the main part of the housing. Joe’s building policy limits of $ 100,000, Content limits of $ 50,000, ALE limits of $ 20,000. The house can be repaired $ 70,000, which is less than the policy. However, the regulator expects the contents loss will exceed the policy limits of $ 50,000, and the EFA will lose $ 15,000. The controller sends in his first report to the insurance company, and tells them to expect that the damage at about $ 135,000 in the following three areas of coverage.
The insurance company can easily spend an initial advance of $ 25,000 to $ 35,000 for contents and ALE, and $ 40,000 to lose $ 50,000 for the house.
So, what do you do when you are damaged contents and you need the most basic things, such as a change of clothes and shoes? What happens if you need a contractor puts the building and put tarps on the roof to keep more rain from the building? Most people do not have tens of thousands of dollars just lying in their bank accounts that can be used to start repairs, or begin to replace personal property. That is when the insurance company gives an advance.
It’s best to make your request in writing. Even if it’s just a handwritten letter, it is best if it is in writing. Write or type your request, keep a copy for your records, and give a copy to your controller. It’s also a good idea to send a duplicate to the claims department of your insurance company. Send it by courier or registered mail. Never trust the regulator to ask for an advance on your behalf. He might get delayed by other work and it may take days before he asks. DO IT YOURSELF. EARLY make a request in the claims process for your payment!