Know Your Policyholder Rights

Few things are more stressful than an insurance claim. Whether you are filing a total loss claim from a catastrophic loss or a minor loss claim, it can feel overwhelming. Not only do you have to deal with the stress of suffering a loss, you now have to navigate a complicated process to be made whole. Long before you ever have to file an insurance claim, it is important to know that you have rights. All states give you certain protections as a  homeowner in the insurance claim process. In Florida, homeowners have the Homeowner Claims Bill of Rights. What rights do you have as a policyholder? The team at Streamline INsurance is here to help …

Do You Need A Homeowner Claims Bill of Rights?

Legislation like this helps homeowners know their rights when filing an insurance claim. It was never intended to list all the rights you have as policyholders and is designed to only apply to the claims process. Before we dig into the meat and potatoes of this legislation, it is important to realize that there are more to claims than what we will discuss. First, there are exceptions that can be exercised by insurers to many of these provisions, especially those related to timelines. Second, there are other pieces of legislation that expand the scope and applicability of these rights. Third, the specific terms of your homeowners policy supersedes anything that is in this legislation. 

With that being said, there are two parts to this legislation. The first part covers your rights as a homeowner when you are filing an insurance claim. The second part provides a list of things you should do to make sure your claim goes smoothly. Let’s take a look at the specific provisions so that you can feel more comfortable if you find yourself filing an insurance claim. 

Your Rights as a Homeowner When Filing an Insurance Claim

The different rights you have as a homeowner can be broken down into two groups. The first group has to do with the various timelines that your insurance company has to abide by. The second group has to do with your rights regarding mediation and seeking advice. It is important to remember that there are exceptions to these timelines. Communication can take longer if there is a catastrophic loss that impacts many people, such as hurricane insurance claims. 

Rights Regarding Insurer Communication about Insurance Claims

14 Days. Your insurer must contact you to acknowledge your claim. 

30 Days. Your insurer has to notify you about the status of your claim. They must tell you if your insurance claim has been partially covered, fully covered, is being investigated, or if it has been denied. What is important to realize is that this notification is required within 30 days of you filing a Proof of Loss form. Until your insurer receives the Proof of Loss form, the clock doesn’t start ticking. 

90 Days. By this time you have the right to receive payment for your settlement or be officially notified of your denial. In the event that you are disputing their settlement, then you have the right to be paid for the undisputed portion of your insurance claim. This is especially important if you do not agree with their settlement offer. You do not have to wait until the entire dispute is finished to get money you need to rebuild after a minor loss or catastrophic loss. The undisputed portion of your claim can help you kickstart your repairs.

Rights Regarding Mediation of Insurance Claims

This portion of your rights basically tells you that you are entitled to free mediation. This is done through the Division of Consumer Services, which is a part of the Florida Department of Financial Services. If you would like to use this service, you contact them. What is important to realize is that it is helpful to have an expert advocate on your behalf. 

Suggestions for Policyholders for Insurance Claims

This next section of the Homeowner Claims Bill of Rights provides advice for you as the homeowner to make sure your claim goes well. These pieces of advice cover everything from mitigation of losses to working with a contractor. 

Contact Your Insurer Before Repairs. Do not sign a contract with a contractor to start repairs before you speak to your insurer. You want to make sure what you are having repaired will be covered by your policy and at what amount. 

Document Emergency Repairs. As a policyholder, it is your responsibility to mitigate further damage. If you need to do some emergency repairs in order to prevent further damage, then you need to document all of it. Keep anything that was damaged, so that it can be investigated at a later date. If you have to buy anything in order to do those repairs, keep the receipts. Finally, take photographs and video recordings of anything that was damaged and any of the emergency repairs you made.

Take Precautions if Evacuation is Required. If you need to leave your home because it is not safe to remain there, make sure you try and prevent further damage. Turn off your water and your gas, so that a bad loss does not become a catastrophic Loss.

Be Careful With Contractors. Several of the advice provisions relate to working with contractors. Make sure any contractor you work with is licensed and has the necessary insurance. Also, do not trust them regarding anything they say about your policy or their claim. They are not insurers. They are not public adjusters. They are not attorneys. Contractors are contractors. Be wary of signing anything that requires out of pocket expenses in exchange for future insurance compensation.

Final Thoughts

While the Homeowner Claim Bill of Rights provides some clarity about filing an insurance claim, it is not complete and it is not ironclad. First, it is only for homewners insurance policyholders in Florida. Many states have their own legislation that provides protections for the citizens of their own state. Also, the specific provisions of your insurance policy will truly determine what rights you have when filing an insurance claim. The types of coverages you have and their amounts will impact your settlement. If you have gaps in your coverage, then the Homeowner Claim Bill of Rights will do nothing for you. Making sure your coverage is complete before you ever experience a loss is the best thing you can do for future insurance claims. Working with a professional insurance broker will give you a resource to know your rights in your state.

If you want to make sure that your insurance coverage is complete, contact us! We offer a free, no-obligation insurance policy review. This will help you identify gaps in your coverage long before you ever file a claim. Each state has their own requirements for insurance policies and policyholders.