Some Cautions For The Insured
1. Beware of “expediters.” Beware of anyone who claims that they are working on behalf of the government, the VT Department of Banking & Insurance, or your insurance company and asks for money to help expedite your claim. Demand to see an official photo identification. Ask this person’s name and immediately report this to your insurance company or the VT Department of Banking & Insurance for verification.
2. Ensure proper credentials if utilizing “public adjusters.” You may be approached by a "public adjuster" who will offer to assist you in handling or expediting your insurance claims in return for a percentage of your insurance benefit payments. Public adjusters are independent adjusters that provide service for a percentage of the claim settlement. Public adjusters often state that the fee is generally offset by the ability to obtain a better settlement than the insured would be able to obtain on your own. Public Adjusters are regulated under Title 8 V.S.A. Chapter 131 which provides for proper licensing of Public Adjusters that an insured should consider if contracting with such an adjuster.
3. Be sure estimates for repairs are reasonable. Most insurance companies will only reimburse for reasonable cost of repair. If prices quoted for repairs appear inflated, get another estimate and obtain your insurance company’s agreement before undertaking repairs. Remember that your claim will only be approved to the extent that it does not exceed your policy limit. If you undertake repairs at an inflated price, you may reach your maximum policy limit very quickly.
Changing Coverage After a Disaster Where the homeowner’s property is completely destroyed or is uninhabitable,
cancel or reduce insurance coverage as appropriate. This can save the homeowner several hundred dollars per year for homeowner’s insurance and several thousand dollars per year for flood insurance.
Read the terms of the mortgage deed to determine whether or not insurance
coverage was required under its terms. In particular, note that federal flood hazard regulations mandate that federally insured mortgagors carry flood insurance at least equal to the assessed value of the property. If the mortgagor fails to do so, the mortgage servicer is required to secure force-placed insurance, which is often thousands of dollars more than NFIP policies.
If the mortgage requires coverage, contact the lender and insurance agent to find
out what documentation will be required to reduce or eliminate the policy amount. For instance, the client may be required to provide a copy of the most up-to-date lister card that notes the change in value, or in some cases, may be required to hire an appraiser to determine the post-disaster value of the structure. The insured is likely to be required to sign a form or statement indicating what she wishes her new coverage value to be.
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