homeowners insurance claim
Insurance Claims Management Tips for Homeowners
For most homeowners, filing homeowner’s insurance claims is a rare event. Unfortunately, because individuals don’t need to do so often, it’s easy to find yourself getting the short end of the deal. After all, if you had to file frequent insurance claims, you’d know what to expect and have the benefit of experience. If you’re involved in a homeowner’s insurance claim for the first time (or need a refresher), here are a few insurance claim tips to help ensure that you get a fair settlement.
Clues that Your Insurance Claim Might Not be Fair:
· The insurance adjuster arrives, takes a quick look around, and then disappears. Preparing realistic assessments of the damage takes time. When an adjuster comes in and says, “Yep, the house is flooded alright†and then dashes off to his next claim, he’s not giving your property the attention to detail that you deserve. You already know the house is flooded, right? The adjuster’s job is to assess the damage and make reasonable estimates.
· Lightning fast settlement offers. This is clue is similar to the adjuster who arrives and quickly departs only this time, the offer is made “too fast.†For example, if the adjuster arrives and says, “Yep, the house is flooded. I’m authorized to cut you a check for $X right now,†resist the urge to accept the offer right away. Ask to see a detailed breakdown of the damages along with estimates. In addition, obtain your own independent estimates so that you can make sure that the settlement offer is sufficient.
· The insurance company “brushes you off.†Is your insurance adjuster failing to return your calls? While adjusters are busy professionals, not returning phone calls is a common ploy. When you feel as if you are getting the brush off, continuous phone calls to the adjuster may continue to be ignored. Instead, call the insurance company and ask if the adjuster is in the building. If so, do not let the receptionist transfer you to the adjuster’s desk as your call will likely end up in voicemail. Ask the receptionist to get the adjuster on the line and connect you directly. If this is not possible, ask to speak to a supervisor and state that you will hold on the line until you can speak with someone in authority rather than leave a message.
· Stalling tactics. In most states, insurance companies must resolve claims in a specific time frame. However, these regulations have a bit of wiggle room and time frames can be extended under certain circumstances. For example, in Texas, insurance companies have 15 calendar days (in most cases) to acknowledge receipt of your claim and request reasonable information related to the claim. From there, the insurance company has 15 business days to approve or deny your claim in writing. However, if the insurance company notifies you that it needs more time, this deadline can be extended. The law provides additional provisions and regulations such as Texas’s vary from state to state. If your insurance company continuously asks for clarification on your claim forms, they may be stalling. Check your state’s department of insurance to see what your rights are.
When it comes to filing an insurance claim, taking a proactive approach will help ensure that you are properly compensated. Prepare detailed inventories and obtain several independent estimates. Be prepared to stick up for yourself and make your case.
By: Mr. Mark Decherd
For more information and other articles by Mark Decherd go to:
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Any one know if you can claim mortgage insurance on your taxes? Not regular homeowners insurance, but the…?
separate insurance you can take out to cover the cost of your house if you are diabled or die!! Thanks!!!
This insurance was not required by our mortgage insurance, we took it out on our own to protect me and my kids if something if my husband is hurt or dies before our mortgage is paid off!!! I am a SAHM and he wanted to protect us!!!!
SAHM= stay at home mom
Just curious, what is an SAHM?
Here is a link and article I found for you. I hope this helps a great deal:
Mortgage insurance gets tax break — themorningcall.com
Deduction for people earning up to $109,000 extended by Congress.
By Arden Dale | Of Dow Jones Newswires
January 12, 2008.
Homeowners with a new loans that are covered by insurance can claim a tax break on the insurance this year.
The break, called the qualified mortgage insurance deduction, lets taxpayers with an adjusted gross income of less than $100,000 write off the full cost of mortgage insurance. Folks who earn less than $109,000 can take a write-off for part of it.
To qualify, the mortgage must have originated between 2007 and 2010. The deduction can be taken for insurance on a principal residence or a second home.
Introduced by the Tax Relief and Health Care Act of 2006, the break initially applied only to the 2007 tax year, but it was extended through 2010 by the Mortgage Forgiveness Debt Relief Act of 2007.
”It’s something we will definitely ask our clients about,” said Jackie Perlman, senior tax research coordinator at H&R Block Inc. ”If you come in and say you bought a home, we’ll be checking it out and making sure you get that deduction.”
The mortgage insurance deduction will help first-time home buyers who are unable to put down 20 percent of a mortgage. Typically, ”if you put down less than 20 percent down, that’s where the lender would require private mortgage insurance,” said Katie Monfre, a spokeswoman for Mortgage Guaranty Insurance Corp., a private mortgage insurer in Milwaukee owned by MGIC Investment Corporation.
On average, the annual tax break from the deduction will be worth around $350 per taxpayer, according to the Mortgage Insurance Companies of America, which represents mortgage insurers.
Bob Meighan, CPA and vice president at Intuit Inc., which makes TurboTax tax software, said he doesn’t have an estimate of how many clients will take the deduction, but that claiming it is likely to be ”pretty straightforward.”
Private mortgage insurance protects the lender, not the homeowner, guarding against a situation in which a borrower defaults, leaving the lender unable to recover costs after foreclosing on the loan.
About one in 10 residential mortgages is covered by private mortgage insurance, according to Jeff Lubar, a spokesman for MICA. That number rises if one includes government loans, many of which are also covered by mortgage insurance.
The new tax deduction can be taken for both private mortgage insurance and insurance provided by the Department of Veterans Affairs, the Federal Housing Administration and the Rural Housing Administration, according to Perlman.
Mortgage insurance premiums should be reported in Box 4 of Form 1098, which borrowers get from their lenders each year.
For some homeowners, the new deduction will be an incentive to get private mortgage insurance rather than a so-called piggyback loan. A piggyback loan is actually two or more loans; it involves taking out separate loans to cover principal and a down payment. The option has been used by people who can’t afford a down payment outright.
”Before, the interest rate on the second mortgage was deductible and for mortgage insurance it wasn’t,” said Monfre. ”This has evened the playing field, and both are now deductible.”
More lenders are requiring mortgage insurance these days because of the increased risk in the marketplace, according to Monfre.
| Homeowners with a new loans that are covered by insurance can claim a tax break on the insurance this year. … both private mortgage insurance and insurance …
www.mcall.com/business/local/all-tax.6224207jan12,0,7126132.story
Good Luck!!
Gina
