Texas
Department of Insurance
Summaries of the
News Releases for 2005-2006
In the Event of a
Loss Covered by Insurance
News Release Date:
1/25/2006
Category: Disaster/Storms
As the recent
wildfire situation in Texas has shown, a
disaster can occur in any part of the state and
often with little or no warning. Planning ahead
can help you protect yourself, your family, and
your property in the event of a disaster.
Insurance offers financial protection against
damage from natural disasters, but you need the
right kind of insurance in the proper amounts.
The following information can help you
understand your coverage and protect your
interests if you have to file a claim.
Be Prepared
Review your insurance coverage. It’s a good idea
to keep an inventory of the items you own.
Photograph or videotape each room and the
exterior of your home. List serial numbers on
the items if possible. Keep your inventory, your
insurance policy, and any other important
documents in a safe deposit box or other secure
spot. If your home or property is damaged,
accurate records can help speed up the claims
process and can help prove tax-deductible
uninsured losses.
Make certain your homeowners or commercial
property coverage is still in force and that it
provides adequate coverage to pay the full
replacement cost of your property. Read your
policy carefully! Make sure you understand what
the policy does and does not cover and what your
policy’s limits are. You may have to buy
separate policies to cover wind, hail, and flood
damage.
Auto insurance. State law requires all drivers
to maintain liability insurance, which pays for
injuries and damages you cause to other people
and their cars. Liability coverage does not pay
for any type of damage to your own vehicle,
however. You will need to purchase additional
coverage known as "comprehensive" to protect
your vehicle from damage caused by hail, flood,
fire, or theft.
After the Covered Loss
When it’s safe to do so, check your house and
car for damage. Contact your insurance agent or
company promptly to report damage. Follow
immediately with a written claim to protect your
rights under Texas´ prompt-payment law.
Homeowners and renters policies pay for debris
removal and for temporary additional living
expenses if you have to move because your home
is uninhabitable due to damage or loss of use as
a result of a covered peril. This coverage
reimburses you for food or lodging expenses
while your home is unlivable or while it is
being repaired.
Make reasonable and necessary temporary repairs
to protect your home and property from further
damage. Cover broken windows and holes to keep
rain out. Do not make permanent repairs before a
claims adjuster inspects the damage. Keep a
record of your repair expenses and save all
receipts. Photograph the damage. Try to be
present when the adjuster inspects your damage.
You may have your contractor present at the
inspection or have the contractor review the
adjuster’s report before settling the claim.
Don’t accept an unfair settlement.
Resolving Your Claim
Your insurance company must acknowledge that it
has begun an investigation within 15 days of
receiving your claim. The company may request
any additional information needed to resolve
your claim. Once it has the information, the
company must notify you in writing of the
acceptance or rejection of your claim within 15
business days or tell you why it needs more
time. The claims handling deadlines may be
extended for certain weather-related or other
natural disasters.
Automobile and homeowners policies allow you or
the company to demand an appraisal to resolve
some claim disputes. Review your policy for a
description of the appraisal process and to
learn which disputes can be resolved through
appraisal. Once all differences are settled, the
company has five business days to mail you a
check. Surplus lines carriers have 20 days to
pay. If you do not receive your payment
promptly, call your agent. If you have questions
about your claim, call TDI.
Work with reputable contractors. Ask contractors
for references and verify them. Contact your
Better Business Bureau, local police, or Chamber
of Commerce for information. Insist on an
itemized contract in writing and pay only as
work is completed. The Texas Deceptive Trade
Practices Act prohibits price gouging once the
governor has declared an area a "disaster area."
If you suspect price-gouging or any other
deceptive business practice, call the Office of
the Attorney General’s Consumer Protection Hot
Line at 1-800-337-3928.
For More Information
If you have questions about insurance, call
TDI’s Consumer Help Line at 1-800-252-3439 or
visit the TDI website at www.tdi.state.tx.us
To report a suspicious fire to the Arson/Burn
Ban Hotline, call 1-877-434-7345.
To report a case of suspected fraud, call
1-888-327-8818.
Complaints
You may file a complaint with TDI in a variety
of ways:
* by completing the online complaint form on
TDI’s website;
* by e-mail at:
ConsumerProtection@tdi.state.tx.us;
* by fax at 512-475-1771;
* by mail at:
Texas Department of Insurance
Consumer Protection Program
P.O. Box 149091
Austin, TX 78714-9091 |
