THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Sunday, August 27, 1995 TAG: 9508260371
SECTION: BUSINESS PAGE: D3 EDITION: FINAL
LENGTH: Medium: 83 lines
Hurricane Felix is history, but its proximity to the Virginia coast earlier this month prompted many homeowners to think about the extent of their insurance coverage and the process for filing claims. The following are answers from insurance experts and state regulators to some commonly asked questions about the claims process.
If my home is damaged by a storm, how do I file a claim?
The first contact is your insurance agent. If property damage in Hampton Roads is widespread, insurance companies will bring in additional personnel to help process their policyholders' claims. However, insurers try to deal first with those customers who have suffered the most serious damage.
What if I can't reach my insurance agent?
If an agent isn't available and your insurance company doesn't have representatives on the scene, the Virginia Bureau of Insurance recommends that you call the company directly and ask for its claims department. The company's telephone number is on your policy.
The company's phone number also is available from the Bureau of Insurance in Richmond. The State Corporation Commission, parent of the insurance bureau, has a toll-free phone line (800) 552-7945 with employees who can answer insurance-related questions.
Will my homeowner's policy pay for damage done to personal belongings in my house?
The typical policy covers the contents of a home and garage. However, you should check your policy for the limits.
``If you have $100,000 of coverage in your homeowner's policy, you could have anywhere from $50,000 to $75,000 of coverage for what's in your home,'' said Ericka Lewis, a spokeswoman for the Insurance Information Institute, an industry organization.
Are there any limits on what I will receive for damage to my personal belongings?
Yes. Insurers set limits on specific items, such as expensive jewelry and fur coats. ``The cap on any single item is typically $2,500 unless you have endorsements that provide additional coverage,'' said Lewis.
What else should I look for in my policy?
Check to see if it provides the cash value or the replacement value on damage to your house and belongings.
If a 10-year-old couch is ruined by the storm, a policy with the replacement cost would pay you to buy a new couch of comparable value. Under a cash-value policy, there may be little or no value left in the couch.
``Normally this is spelled out on the page that lists the amounts of insurance you have,'' said Mike Barrett, property field manager at USAA's regional office in Norfolk.
My house has been flooded. Will my policy cover that damage?
Not unless you have coverage through the federal government's National Flood Insurance program. Homeowner's policies from private insurers exclude flood damage. Flood policies are sold and serviced by private insurance agents and insurance companies.
If my house is damaged, will I be reimbursed for any temporary repairs that I make?
Yes. To speed up the reimbursement process, save any receipts or records of the repairs that you make, USAA's Barrett said.
A tree in my yard has been blown down by a hurricane. Will my homeowners' policy cover the cost of removing the tree?
No, not unless the tree damaged your house. If it did, the cost of removing the tree would be covered.
The storm damage to my house is so severe that I have to live somewhere else while it is repaired. Will my homeowner's policy cover my additional living expenses?
``People have to look at their policies to see if they opted for additional living expense coverage,'' said Lewis of the Insurance Information Institute. ``If they have, an insurer will pay for living in another dwelling while your home is being rebuilt or fixed up.''
My home was damaged by the storm, and then my television was stolen. Will the loss of the television be covered by my policy?
Yes. Theft and vandalism are covered in a homeowner's policy.
I'm a renter. How much different is the coverage in my renter's policy from a homeowner's policy?
Your policy will cover damage to personal belongings but not damage to the building where you live. Like a homeowner's policy, yours may cover the cash value of damaged belongings or the replacement value.
KEYWORDS: FLOOD INSURANCE CLAIMS by CNB