How to Win the Claim Game

Tropical Storm Fay and now Hurricane Ike are just the most recent examples of unexpected disasters that require you to deal with your insurance company. Here's our advice if you find yourself in that situation, no matter how big or small the emergency.

Keep in mind that insurance companies aren't in any hurry to pay your claim. That's because when you file a claim, the insurance company loses money (insurance companies don't like to do that). Their goal is to pay out as little as possible in losses - so you need to know how to play the game if you want your money's worth.

The first step you should take is a preventive measure: Keep a complete record of your household belongings. You should also save receipts for any major purchases, so you can prove how much you paid.

If you do have to file a claim, the first thing to do is call your agent or the insurance company and report the loss. If the police are involved, find out how and when you can get the police report (the insurance company will want it). You should also jot down some notes about what happened in case you need them later. (This includes witnesses' names and numbers.)

It even makes sense to pay only your kids (or a professional) to videotape all of the belongings in your home – especially jewelry and other high priced items.

You also need to remember that expenses associated with a loss are recoverable. For example, a rental car after an accident or a place to stay while your house is unlivable are both covered. So keep your receipts. Also pay close attention to paperwork. Follow the company's rules for filing claims carefully so the company can't delay payment because you forgot to fill out a question on a form somewhere. And whenever you talk to an agent, write down the date, time and claim adjustor's name.

Don't let your insurance company drag its feet on your claim. (You should see progress within two weeks of your claim.) If things are slow going, ask why. If they don't have a good reason for the delay, demand your check, authorization for repairs, or whatever action is necessary.

If your claim is denied, ask your company to send you the refusal in writing, including the reference in your policy that backs their action. Insurance companies will try to use vague language to avoid paying your loss, but remember the laws are in your favor when something is unclear. If you have a grievance or complaint, put it in writing when it happens.

If your insurance company still won't budge, get your agent involved again. Your agent knows the people and procedures at his company better than you; use that knowledge and experience to your advantage. If your agent can't seem to get anywhere either, contact your state's department of insurance (listed in the phone book).

Don't lose any money to insurance companies' sneaky methods! Check out our articles on how to protect yourself:

• Life Insurance Sales Tactics
• Why We (Generally) Hate Cash-Value Insurance Policies
• Four Biggest and Costliest Life Insurance Mistakes