Insurance exists for the moment something goes wrong. Yet when a fire, storm, theft or other loss happens, many people are unsure what to do, and the stress of the event can make clear thinking difficult. Knowing the steps in advance helps you act quickly, protect your position and give your claim the best chance of a smooth outcome.
Here is a straightforward guide to what to do after a loss, and how your adviser fits into the process.
First, make sure everyone is safe
Before anything else, attend to safety. Make sure people are out of harm’s way and follow the directions of emergency services. Do not enter a damaged building or area until it is safe to do so, and be alert to hazards such as fallen power lines, floodwater, structural damage or smoke.
Property can be repaired or replaced. People come first.
Prevent further damage where you safely can
Most policies expect you to take reasonable steps to prevent further loss once an event has occurred. That might mean arranging temporary repairs to stop water getting in, or securing premises against theft. Keep it reasonable and safe, and keep receipts for anything you spend, as these costs may form part of your claim.
Avoid carrying out permanent repairs before your insurer has had a chance to assess the damage, unless it is genuinely urgent.
Document everything
Good records make a claim far easier. As soon as it is safe:
- Take clear photographs or video of all the damage before you move or dispose of anything.
- Make a list of what has been damaged, lost or stolen, with as much detail as you can.
- Keep damaged items where possible, as the insurer may want to inspect them.
- Gather any supporting documents such as receipts, valuations, invoices or ownership records.
- Note down what happened, including the date, time and any relevant circumstances.
Contact your insurer or adviser early
Get in touch as soon as you reasonably can. Lodging a claim promptly helps the process move and means you get guidance early. Your insurer can explain what is covered, what information they need, and which repairers or services are approved.
If you have an insurance adviser, they can lodge and manage the claim on your behalf, deal with the insurer for you, and help if any questions or complications arise. This is one of the most valuable things an adviser does.
Understand the roles of the people involved
You may come across a few different roles during a claim. A loss assessor or adjuster may be appointed by the insurer to assess the damage and the claim. Approved repairers and suppliers may be arranged to carry out the work. Your adviser works for you throughout, helping you understand the process and advocating on your behalf.
If you are not satisfied with how a claim is handled, there is a formal complaints process, and disputes can ultimately be taken to the external dispute resolution scheme.
Be wary of opportunists
After major events, be cautious of people offering urgent repairs or claims help that you did not ask for. Check credentials, do not sign anything on the spot, and speak to your insurer or adviser before agreeing to any work.
A loss is stressful, but a clear process makes it manageable. Knowing the steps, keeping good records, and leaning on your adviser can make a real difference to how quickly you recover. Speak with your insurance adviser about how claims work under your policies, so you know what to expect before you ever need to make one.
General advice warning: The information provided is general advice only. You should consider whether it is appropriate for your objectives, financial situation and needs before acting on it. You should obtain and consider the relevant Product Disclosure Statement before making any decision to purchase a financial product.
This article was published by our AFSL Licensee, Insurance Advisernet Australia P/L, www.insuranceadviser.net