The right to own property is an inalienable right in the United States. Our possessions can be included in insurance policies. We pay for coverage, and if our property is damaged or destroyed, we can be compensated to replace it or recover its value. Many insurance companies ensure homeowners don’t experience significant financial losses during disasters.
Property damage claims are used to take advantage of coverage under insurance policies. How do these claims work, and what types of property damage claims can be made? Let’s discuss how this system works, including theft claims.
What is Property Damage?
Property damage does not just refer to land. It refers to everything a person owns, including buildings, personal belongings, and land. This includes parts of the property, such as if you experience small electrical fires, broken windows, burst pipes, or possible appliance malfunctions. If the property you own is damaged or destroyed, it could fall under the policy terms of an insurance plan.
Common Causes of Property Damage
Many scenarios can result in personal property damage. For homes and possessions, some property damage causes include fire, water damage, and storms. You may have property damage coverage on your car that can pay out if you get into an accident or someone vandalizes the vehicle.
Homeowners Insurance Claims
One of the most common types of property damage claims is under homeowners insurance. When you purchase a home, homeowners insurance is typically required to cover the property and your possessions. If you suffer significant property damage because of a covered peril, you can file a claim and be compensated.
Covered Perils and Excluded Perils
These policies vary from carrier to carrier. Generally, homeowners insurance covers damage from fires, lightning, wind storms, hail, and vandalism. Some excluded perils may include damage from earthquakes, floods, or intentional acts. However, you could invest in additional policies like flood insurance to include flood damage as a covered peril.
Types of Coverage
Within a homeowner’s insurance policy, there are several categories of coverage. Dwelling coverage affects the structure of the building and various types of structural damage. Personal property coverage can protect you financially if your possessions are damaged or destroyed. You can also pay for insurance that covers additional living expenses, such as temporary housing, while your home is fixed after a loss.
Other Common Property Damage Claims
Property damage claims also occur outside the realm of homeownership. They still operate similarly, allowing policyholders to file claims for compensation if their possessions are damaged during a covered loss. Here are some other examples of property damage claims an insurance provider could cover.
Auto Insurance Claims
You must pay an insurance company for coverage if you own a car. States have varying requirements for minimum coverage, typically including personal injury liability and property damage coverage. Homeowners can typically receive a fair settlement if property is damaged due to an accident.
Commercial Property Insurance Claims
Residential properties are not the only buildings with insurance coverage. Commercial property owners also invest in coverage for their investments. They can often include equipment and inventory in property damage claims.
Natural Disaster Claims
Natural disasters occupy their unique branch of insurance coverage. While some homeowners policies may not protect owners from these disasters, additional protection is available for specific events like hurricanes, tornadoes, or earthquakes. Property owners who live in areas that experience these disasters should consider purchasing extra protection.
Third-Party Liability Claims
Third-party liability claims are possible if a negligent party causes damage to your property. For example, a neighbor could run over your mailbox, or another driver may cause the accident you are involved in. This type of claim is usually separate from a property claim.
The Claims Process
The process is very similar whether you are filing fire damage claims, hail damage claims, or car accident claims. Filing a claim requires reporting the damage to your insurance company, awaiting the investigation of the insurance adjuster, and negotiating a settlement amount. Let’s discuss these stages in detail to understand property damage claims better.
Reporting the Damage
First, you will report the damage to your insurance provider and include as much documentation as possible. Take photos and videos of the damage and include eyewitness accounts, if there are any, with your claim.
The Insurance Company’s Investigation
The next step in the claims process is an investigation by the insurer. They must verify that the damage to real property actually occurred. This investigation will also determine the fair compensation they believe you deserve based on your coverage.
Negotiating a Settlement
The insurance company will then offer compensation to alleviate your financial burden. If you believe the amount is unfair, you should negotiate for more by providing additional evidence of the damage or estimates of the repair costs. If you still feel mistreated by the unfair offer, you could hire a lawyer who can help ensure fair compensation.
How a Home Restoration Company Can Help You
Compensation is just one aspect of the recovery process for damage claims related to residential properties. You must also consider the work needed to restore your home to its pre-loss condition. This may require working with a professional restoration company.
Assessing and Documenting Damage
A restoration company can assess the damage to your home and provide an estimate for the replacement cost that you can submit with your compensation claim. These professionals will also work with the insurance adjusters to determine the coverage amount.
Providing Repair and Restoration Services
Once coverage is figured out, the restoration services can repair your home and return it to its pre-loss condition. Whether this involves water damage restoration, fire damage repairs, mold remediation, or reconstruction, an experienced firm can ensure your home is safe again.
Contact Us Now!
PacWest Restoration has the expertise and equipment to return your home to normal. Our team has helped many homeowners recover their losses by working with insurance companies and implementing effective restoration solutions.
Call us today at 503-746-6545 or complete the online form to request a free assessment of your home’s damage.
