An Exception Clause in Fire Home Owner’s Insurance Compensation (1)
Here are some rights to know regarding insurance claims that will lead to compensation in the future.
Most people don’t know that they can be compensated through home owner’s fire insurance in this situation.
For the client with fire insurance with a deductible of $500:
You went to play golf one day and your golf clubs and the laptop in your car got stolen while you went to use the restroom.
In this situation, you can receive compensation through your fire home owner’s insurance. For example, let’s say you purchased your golf clubs for $3000, golf bag for $250, distance tracker and balls for $250, personal laptop for $1,200, (total theft amount of $4,700). You can receive up to $4,200, after the $500 deductible, through your fire home owner insurance.
This is the process:
In the case of a theft, go to the police station near the golf course as soon as possible and tell them that you came to file a Theft Loss Report for your insurance claim. The police officer will then give you a theft report form. You concisely fill out when, where, and what items were stolen. If having difficulty with the language, you can also request a free interpreter. Once the report is filled out, one copy is kept at the police station and the other copy is retained by you.
Then, fax the theft report, and all the receipts of the items stolen (golf clubs, golf bag, laptop,…) to the claim department of the insurance company and you will receive the check for compensation in about one to two weeks.
If you are not able to fax a copy of the receipts, submit a brief letter stating why you cannot find the receipts. The letter should contain when and how the item was purchased, if it was paid by you, or if it was a gift, and your signature is required for the letter to be effective. It is possible to file a claim even if the item was purchased overseas.
The insurance may call the business to confirm the purchase and the claim may be denied if not able to verify the information.
Let me share with you how to receive full compensation in case that the insurance company only pays out $2,940, taking away 30 percent ($1,260) after calculating the year the items were purchased and applying depreciation values.
Go and purchase the items stolen, equal or more in value and turn in the receipts. If the expense exceeds $4,700, then the insurance company will reimburse the subtracted depreciation value of $1,260. Keep in mind that the receipts must be submitted within one year of the theft or your right to be reimbursed the depreciation value will be lost forever.
In the above situation, how is it possible to be compensated for a theft that occurred outside of the home through your home owner’s fire insurance?
First of all, fire insurance includes coverage for theft. Items such as golf clubs and laptops are considered personal property, usually kept at home, and so they acknowledge the loss as if it happened in the home.
Here’s further explanation regarding receipts.
You will receive speedy compensation if you fax your receipts of purchase. If you are not able to find the receipt, and you are the purchaser, you can request a copy of the receipt from the business where the item was purchased.
Here’s further explanation regarding depreciation values.
The depreciation value is calculated by figuring out the current value of the stolen item and then applying the item’s life span and the actual years that the item was used. If the life span of a golf club is 20 years and you have been using it for 2 years, then 10 percent of the purchased price will be the depreciation value. There are cases that the insurance company will use its own discretion, without applying a standard, and over-calculate the depreciation value.
As an insurance claims expert who has handled over 3,000 claims, my intention is to inform the consumer of his/her rights through this letter. The outcomes were based on the universal policy, yet the individual outcomes may vary depending on the various policies.
Please contact us.
Jung Park, PA
Excel Public Adjuster