FOR IMMEDIATE RELEASE
NEW YORK, May 23, 2013 — Policyholders affected by the severe tornado that swept through Oklahoma on May 20, are struggling to put the pieces of their lives back in place and getting ready to begin the claims filing process.
Standard
homeowners and
business insurance policies cover wind damage to the structure of an insured building and its contents when caused by a tornado or thunderstorm. Homeowners insurance policies also provide for additional living expenses (ALE). ALE coverage pays the added costs of living away from home if you cannot inhabit your house due to damage from an insured disaster. It covers hotel bills, restaurant meals and other living expenses incurred while your home is being rebuilt. Damage to vehicles from a tornado is covered under the optional comprehensive portion of a standard auto insurance policy. Three out of four U.S. drivers choose to
purchase comprehensive coverage.
- Be prepared to give your insurance professional a description of the damage to your property. He or she will report the loss immediately to your insurance company or to a qualified adjuster who will contact you as soon as possible in order to arrange an inspection of the damage. Make sure to provide a telephone number where you can be reached.
- If it is safe to access the area, take photographs of the damaged property. Visual documentation will help with the claims process and will assist the adjuster in the investigation.
- Prepare a detailed inventory of all damaged or destroyed personal property. Make two copies—one for yourself and one for the adjuster. Your list should be as complete as possible, including a description of the items, dates of purchase or approximate age, cost at time of purchase and estimated replacement cost.
- Collect canceled checks, invoices, receipts or other papers that will assist the adjuster in obtaining the value of the destroyed property.
- Make whatever temporary repairs you can. Cover broken windows and damaged roofs and walls to prevent further destruction. Save the receipts for any supplies and materials you purchase as your insurance company will reimburse you for reasonable expenses in making temporary repairs.
- Secure a detailed estimate for permanent repairs to your home or business from a licensed contractor to give to the adjuster. The estimate should contain the proposed repairs, repair costs and replacement prices.
- If your home is severely damaged and you need to find other accommodations while repairs are being made, keep a record of all expenses, such as hotel and restaurant receipts.
- Damage to businesses from a tornado is covered under business income (also known as business interruption) insurance, providing the property housing the business was hit directly. This type of policy covers the revenue a business would have earned, based on its financial records, had the disaster not occurred. The policy also covers additional operating expenses incurred as a result of the disaster, such as the extra expenses involved in operating out of a temporary location.
Serious Losses Will Be Given Priority
If your home or business has been destroyed or seriously damaged, your insurance professional will do everything possible to ensure your claim is given priority.
Even if you were not directly affected by the tornado, the I.I.I. encourages everyone to understand the claims process. The best time to learn about your insurance coverage and how to file a claim is before you have a loss.
An inventory can help you purchase the correct amount of insurance and speed up the claims process when there is a loss. An important way you can make the claims process easier is to have an up-to-date home inventory of your personal possessions. To make creating your inventory as easy as possible, the I.I.I. provides a free home inventory app and Web-based software,
Know Your Stuff® - Home Inventory.
RELATED LINKS
The I.I.I.’s free mobile apps can help you create a disaster plan, learn about selecting the right insurance for your needs and budget, and create and maintain a home inventory. Learn more about our suite of apps here.
THE I.I.I. IS A NONPROFIT, COMMUNICATIONS ORGANIZATION SUPPORTED BY THE INSURANCE INDUSTRY.
Insurance Information Institute, 110 William Street, New York, NY 10038; (212) 346-5500;
www.iii.org