Don’t wait on insurers, state says

Tend to property, keep receipts, tornado victims told

J. Greg Crump of Chattanooga, Tenn., a general adjuster for Safeco Insurance, on Tuesday assesses the damage done to the home of Robert Tittle and his family on Deer Drive near Paron. The home was demolished by a tornado Sunday night that killed Tittle and two of his daughters, Tori, 20, and Rebekah, 14. Tittle’s wife, Kerry, and their seven other children survived but were injured.
J. Greg Crump of Chattanooga, Tenn., a general adjuster for Safeco Insurance, on Tuesday assesses the damage done to the home of Robert Tittle and his family on Deer Drive near Paron. The home was demolished by a tornado Sunday night that killed Tittle and two of his daughters, Tori, 20, and Rebekah, 14. Tittle’s wife, Kerry, and their seven other children survived but were injured.

Arkansans who sustained damage to their homes from recent tornadoes should do what they can to protect their property, even if they have yet to speak with an insurance representative, Jay Bradford, commissioner of the Arkansas Insurance Department, said Tuesday.

On Sunday, at least one EF3 tornado tore through western Pulaski, Faulkner and White counties, leaving at least 15 people dead and causing many millions of dollars in property damage.

“A lot of time, people are afraid and don’t want to take action until their insurance company gets there,” Bradford said. “Well, the insurance companies would want any of their consumers to take whatever action they can take to protect their property. That also is protecting the insurance companies’ interest. Don’t wait around for further damage to occur.”

Generally, those additional expenses will be paid for by the insurer, said Bradford, who has about 50 years of experience in the insurance industry. The property owner should keep receipts for proof of the costs they incur, Bradford said.

It also is appropriate for the consumer to ask for an advance to cover early costs, Bradford said. It’s not necessary to wait until everything is itemized, Bradford said.

“Obviously, also take pictures of the damage before you clean it up,” Bradford said.

If a consumer has yet to speak with an insurance adjuster, he shouldn’t hesitate to talk to the agent who wrote the policy, Bradford said.

“The agent should be well qualified to help with advice,” Bradford said.

For consumers with questions, the Insurance Department has representatives who can answer insurance-related questions, Bradford said. The toll-free number is (800) 852-5494.

Many major insurance companies are already in Arkansas with their adjusters, setting up disaster response offices, Bradford said.

“The tragic thing is there are going to be a tremendous number of total losses,” Bradford said. “Arkansas law says that if something is a total loss, whatever insurance is on that is payable.” In other words, if a homeowner has $100,000 of coverage on his property and it is a total loss, the insurance company should pay $100,000, he said.

“There isn’t any debate about that,” Bradford said. “Partial losses have to be adjusted, with estimates made and the company approving repair.”

One important thing for property owners to do is to conduct an inventory of the contents of their houses or apartments ahead of any event that might result in a claim, said Bradford, a sentiment echoed by Gary Stephenson of North Little Rock, a spokesman for State Farm Insurance.

“If you just go through your home and take pictures with an iPhone, that’s very helpful,” Bradford said. “It stimulates the person’s mind about what was in their home.”

There is a smartphone application at insureonline.org/home_inventory_page.htm.

“Ninety-eight percent of the people we see do not have an up-to-date inventory of the items in their home,” said Stephenson, who was in Vilonia on Tuesday assessing the tornado damage. Stephenson said he will travel to Mayflower today.

Homeowners normally have two coverages on their property - for damage done to the home and for the contents in the home, Stephenson said. Various insurance companies have different approaches, Stephenson said.

But typically, the insurer will hand homeowners an inventory sheet and ask them to list their possessions, Stephenson said. Normally, the homeowner has a year or two to list all the possessions, he said.

“Trying to sit down and think about how many tools or pairs of pants I had can be very difficult,” Stephenson said. “I’d encourage people to take 15 minutes this weekend, walk through every room in your house and photograph everything very carefully. If there is a large claim on your home, that will speed up getting your contents’ coverage money.”

Often, insurance companies insure a home for its replacement cost, Stephenson said. For example, if a home worth $180,000 is destroyed, the insurance company could pay more than that amount to replace it.

“Then in the rebuilding of that house, if it costs $190,000 or $195,000, and the person has the home insured to 100 percent value, we will provide an extra 20 percent on the face value to pay for the rebuilding,” Stephenson said.

Business, Pages 27 on 04/30/2014

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