INSURANCE-DISASTER RECOVERY
Endorsements: This section can also be very lengthy and changes the policy for various reasons, such as when you buy extra coverage for certain items, or when the insurance regulation changes. The number of endorsements you have will be spelled out on your declarations page.
your loan to meet difficult conditions, such as the serious loss you sustained, ask for the bank’s forbearance – a legal term for a kind of lending mercy. Temporarily reducing the monthly payment to interest only, or suspending payment for several months, is a form of forbearance. Make sure the bank records and puts in writing any changes to your loan. Beware of any temporary suspension of loan payments. We have received a few reports of payment default and ensuing foreclosure due to a bank’s mishandling of the forbearance. The previously approved temporary cessation of loan payments were recorded as simply unpaid and then erroneously sent to the collections department. Keep your own copies of any agreements or changes made. Write “partial payment” above your endorsement on the back of all cheques. After you have signed the cheque, photocopy front and back and save (in your filing system) both sides of all cheques you are given. Do not negotiate any cheque that states or infers the payment is FINAL unless you are absolutely certain that your entire insured loss has been determined and is being paid. Otherwise, you may jeopardize any underinsurance or settlement issues you have or may discover at a later date. Have the insurer re-issue any cheque that states or infers a FINAL payment, removing or deleting the statement or inference. Obtain a copy of your entire policy since your insurance policy will determine how much money you will receive from the insurance company, the first thing you need to do is get a copy of it. You can call your agent, your adjuster and the head office and request a copy, but you also need to request a copy in writing. The insurance company has a maximum of 60 days to send you a copy once you request for it, but you will need proof that you actually requested the policy. Not responding to these policy requests is one of the most common complaints after a major disaster. Think of this policy as something like a “rule book” for a Chess game. You could rely on the other people at the table to tell you the rules, but you would have nothing to verify that what they are saying is accurate. The policy is a long, legal document that details all of the ins and outs of the agreement between you and the insurance company. The policy is usually dozens of pages long and it comes in three sections: Declarations page: Usually only one or two pages long. It looks a lot like the billing page you get annually in the mail when you pay your premium. Policy: This sometimes comes in a bound or stapled booklet format with thin pages and makes up the bulk of your policy document. Endorsements: This section can also be very lengthy and changes the policy for various reasons, such as when you buy extra coverage for certain items, or when the insurance regulation changes. The number of endorsements you have will be spelled out on your declarations page. Unfortunately, for the average homeowner the policy can be very difficult to read. You may have one understanding, but the adjuster might tell you something completely different. They might also ask you to do things that are not required or clearly spelled out in the policy. Policy request sample letter [policy number] & [claim number] dear [adjuster/ insurance company name]: as you are aware, we lost our home and everything in it during the [disaster]. we also lost our copy of our insurance policy, endorsements and the declarations page. we have requested a copy of our insurance policy, endorsements and declaration page several times from both our adjuster and agent. we have never received it. [if applicable]. You are entitled to a copy of our policy and declarations page. Please send us immediately an accurate copy of our policy, including all endorsements and our declarations page. If you have any problems, please let us know in writing immediately. Sincerely, [Homeowner signature] & [Homeowner Name] Protect your property from further damage. One of the first things that the policy requires of you is to mitigate your damages. What this means is that you have to take every reasonable step to make sure that more damage does not occur to your property or that you are not exposed to a liability claim by not protecting your property from new dangers. If your house is still partially standing, you should have a contractor immediately come and make temporary arrangements to protect what is still standing. This might mean tarps on the roof or boarding up certain parts of the house. It could also require temporary fencing around the property to protect against liability (in case someone falls into an open pool or trips over the rubble and is injured). Damage Mitigation Check List: Are there any holes or deep pits that need to be covered or protected? Is there any property left on the lot that you want to keep? If so, remove or securely store it to protect it from theft. Is there anything on the property that can be damaged by water, including rain? Do you need to protect against debris flow? Look out for Part V. Note: In this column I offer insurance information in general. Do not completely rely on this column to make particular insurance decisions. For specific insurance advice email me at; insuculture@gmail.com