When making an insurance claim, what you say can mean the difference between a fast payment check and a nightmarish process. Insurance companies are sensitive to certain words, and using them incorrectly could result in a claim delay or even denial.
Of course, lying to your insurance company or misrepresenting facts is fraud -- and your claim will surely be denied if the insurer finds out. But using the right words to accurately describe your problem is important.
"What you say initially can affect the outcome of your claim," says Allan Sabel of Sabel & Associates, an adjusting firm in Bridgeport, Conn.
Here are common "wrong words" that could slow down or scuttle an otherwise legitimate insurance claim. For insurers, these words often conjure up images of a claim that should be denied.
1. 'Flood'
Homeowners often use the word "flood" inappropriately, and it can trigger an alarm with insurers -- since flood damage is not covered under a standard homeowners insurance policy. To an insurance company, "flood" means water from a nearby lake, stream, river or other body of water. This may seem like a minor distinction, but your insurer has a very narrow definition of flooding.
"Many people believe their house is flooded because it's full of water -- but it's not a flood by the insurance definition," Sabel says.
If your water damage did not come from an overflow of a nearby lake, stream, river or other body of water, don't even say the word "flood," says Sabel.
No comments:
Post a Comment