Make sure that your policy is in order and that your assets are insured for the correct amount. Household contents and homeowner's insurance are both on a replacement cost basis, meaning that they must cover the cost of replacing your home and contents instead of their original cost. Under insurance can prove to be very expensive oversight when you go in to claim your insurance policy.

Make sure that you comply with all requirements on your policy

Read and understand all the wordings on your policy. This is the only legal contract that you have with the insurance company and it is binding. Failure to comply with any of the requirements stipulated in the policy could result in a repudiation of a claim. If for example the policy stipulates that for theft cover the premises must be protected by an alarm system this means that the alarm system must be in working order and that the alarm system must have been activated at the time of the theft if the premises were unoccupied. Claims are most often repudiated when people fail to activate alarms. Make sure that you have an understanding of each requirement to ensure compliance, as this is just one example.

Be aware of what excess is applicable on your policy

You should know about what excess is applicable on your policy

Insurance policies can and always do have excess amounts that apply to the very many sections of the policy. These excesses usually vary according to the type of claim. An excess is the amount of the insured’s liability in the case of a claim and this amount will be deducted when your claim is paid out.

When you have suffered a loss and need to claim

When you suffer a loss caused by one of the insured risks, contact your insurance company as soon possible and wait for their further instructions. You should only act on your own if there is an emergency. Just find out what are the documents that the insurance company will need and gather the documentation that you will need to submit your claim.

Written proof of the damages sustained will be required at the time that you submit your claim.

Remember that the insurer is going to cover the expenses for the damages. You must first take the written consent from the insurance company before giving any instruction to any contractors.

If you approve maintenance and the indemnity company is discontented with the cost, you might finish up having to give the dissimilarity among what the insurer perceives to be a logical cost and the payment by the service provider.

The insurer has the right to pay the insured a cash settlement in lieu of paying the contractor,if you, as opposed to the insurance company have authorised repairs.

That means the claim is settled in full concerning the insurance company and all costs including hidden fees will be your responsibility. If unsatisfactory work is performed, there will likely be a confrontation with the contractor.

When the insurance company gives and ok for the repairs to be done, the deal is between the contractor and the insurance company and they will make sure the work is done right.

Signing of the release form

Your signature on the release form. Before they hand you a check most insurance companies will require you to sign a release form indicating that the insured party will accept payment as a full and final settlement. It is advised not to mark this form unless you are entirely contented with the job or be in agreement with the resolution amount presented by the corporation.

If you follow these basic guidelines then you will have peace of mind in the knowledge that in the event of a loss your insurance will place you in the same position as what you would have been had you not suffered the loss – and that is the sole purpose of insurance.