One of the many things that policyholders don’t think about when they have a claim is the IRS tax treatment of the settlement money. I’m not a tax accountant, or any kind of accountant, so I’m not about to practice accounting or tax law here in this article. But, the one thing I know that will help protect you from the wrath of the IRS is to open a special checking account which will only be used for your insurance claim replacements and repairs.

Once the insurance company issues you the first check, go to your bank and open a separate account just for handling claims issues. When you receive the payments for the claim, deposit them in this account. ONLY use this account for the expenses of the claim. When the claim is completed, close the account.

Normally, when the insurance company issues advance payments against the ALE or Contents losses. the checks will be made payable just to you, because there’s no mortgage on your contents. So, those checks can be deposited directly into your claim account.

DO NOT DEPOSIT THE SETTLEMENT CHECKS IN YOUR NORMAL CHECKING OR SAVINGS ACCOUNT. Keeping a separate account for insurance claim related expenditures makes it so much easier to keep good records.

When you ask for an advance against your Dwelling coverage, the insurance company will need to know the name and address of your mortgage company. They will issue the check jointly in your name and the name of the lender. They may send the check to you. If they do, the lender will likely require you to endorse the check and give the check to them. Then, they will set up a system of payments. To find out more about that system of payments, contact the Escrow Department of your Mortgage Company. Every lender is different. Find out what your lender plans to do by contacting them and asking them.

The same procedure will likely apply when the insurance company issues checks for repairs to the dwelling (or even a settlement for a car wreck). Anything you own that also has a lienholder or mortgage holder will be issued jointly in the name of the owner and the name of the lienholder. If you own your dwelling or vehicle free and clear, the insurance company will issue your settlement check only in the name of the owner.

ONLY USE THIS MONEY FOR THE CLAIM. Don’t take a weekend vacation to Las Vegas with the money, or buy yourself that new motorcycle you’ve always wanted. However, there are circumstances in which you can use the money for whatever you like. You just won’t collect all you should. Read Chapter 17, “Deduct This!”

There. I’ve said it in a number of different ways. Don’t comingle your personal funds and your insurance settlement funds. Keep them entirely separate and you’ll have a much more pleasant insurance claims experience.

And now, let me invite you to check out my website for more information about claims.

Check out: http://www.insurance-claim-secrets.com

Copyright 2008 by Russell D. Longcore

NUMBER ONE at Amazon.com in its category!

My blog is at: http://insurance-claim-secrets.blogspot.com

Nominated for Georgia Author of the Year Award 2008

Article Source: http://EzineArticles.com/?expert=Russell_Longcore http://EzineArticles.com/?Insurance-Claims—Open-a-Claim-Checking-Account&id=1250417

Insurance adjusters’ claims handling can go very well, or it can be a nightmare. But part of the responsibility is YOURS!

Have you ever thought about what kind of service you should expect from the adjuster when you file a claim?

A professional, intelligent, honest adjuster is a pleasure to work with. He treats you with respect and gives his best effort to complete his investigation as quickly as possible. He is patient, knowing that you are not familiar with the claims process. He understands how upset you might be about your claim. He senses that you have already been frightened by the loss itself, and now may be frightened about the claims process.

He explains the process to you before he begins it, and invites you to be an active participant, not a spectator. He sits down with you and reads your policy with you, and explains it as he goes. He makes sure that you have his contact phone numbers, so you can get your questions answered when he’s not there. He answers his phone messages promptly.

The professional claims adjuster must have empathy for people. I’m not sure if that is a skill that can be taught with a book or a class. Some of the empathy must come from a person’s upbringing. Compassion for another human being who is hurting or afraid must come from deep within a person. Even having said this, it is not unusual for a person to have his compassion and empathy stretched thin by the things that happen in life.

Haven’t you heard a story from a friend or relative about how badly the insurance company treated them when they had an insurance claim? I think most people have.

In today’s world, poor customer service is nearly accepted as the norm. Sadly, we are overjoyed and amazed when we get good customer service. We’re astounded and tell all our friends when we get great customer service.

Most people I’ve met who had a loss, and filed a claim, never thought for a minute about what kind of service they would get from the adjuster that the insurance company assigned to handle their claim. But, I’m writing today to make a couple of points that will be CRUCIAL to you collecting all the claims settlement money you’re entitled to collect:

1. The pool of qualified, trained adjusters is drying up.

I still read industry magazines. In the latest edition of Claims Magazine, and in the latest edition of Best’s Review, there were articles stating that the insurance claims adjusters nationwide, as a group, were marching on toward retirement years. They went on to say that there is a huge concern in the insurance industry that the most capable, most experienced adjusters are leaving the industry, and that there is a growing shortage of experienced adjusters in the North American market today. The articles also said that these days, insurance companies are spending less time and money training adjusters.

If the insurance companies are worried, YOU as a consumer should be DOUBLE WORRIED!!

Why?

Because inexperienced adjusters won’t be as thorough in the claims process. They won’t have years of experience to fall back on. They won’t know policy language and the claims process as well as the “old guys.”

Have you heard the old saying, “The Devil is in the details?” I’ve said over and over that the claims process is where the devil hides. Most of my book is about teaching consumers that they must educate THEMSELVES about the claims process. The claims process is NOT in the policy. The insurance companies will not tell you…the consumer…about the process, because if they did, the insurance settlement amounts would skyrocket!

You want a couple examples?

First: You’re in a traffic accident, and your car is damaged. The adjuster will likely tell you to go get three estimates from three different repair shops. They’ll want to pick the lowest one, or the middle one as the agreed estimate. However, there’s NOT ONE WORD in your policy that forces you to get three estimates. That is a waste of YOUR time. You should get an estimate from the repair shop of YOUR choice, not the insurance company’s choice. Then, the adjuster should work from your estimate. By the way, if your insurance company has “approved repair facilities,” you should know that they work for a huge discount, and regularly use cheap, aftermarket auto parts…which leads me to the next example.

Second: The insurance industry is totally sold on “aftermarket” parts for auto repair. These parts may fit your car, and may work on your car, but they are of inferior quality to the original equipment manufactured parts the automaker used to build your car. You should NEVER allow the insurance company to insist on aftermarket parts to repair your car. There is NOTHING in your policy that gives the insurance company permission to use cheap parts to repair your car. In fact, most policies guarantee you “like kind and quality” repairs. Aftermarket auto parts save the insurance company bunches of money, but only at your expense.

2. Knowing that the talent pool is shrinking, it’s more important than EVER to make sure your adjuster is qualified to handle your claim.

In Chapter 7 of my book I wrote at length about the qualifications of an adjuster. I also wrote about what level of service you should expect from the insurance adjuster who handles your claim.

You should interview your adjuster and find out his education and claims experience. If you do not believe that your adjuster has the education and experience to handle your claim, you should call his supervisor and request that your claim be transferred to a more experienced adjuster. Further, I say in Chapter 7 that if the adjuster has less than two years’ experience, ask for another adjuster. If the insurance company refuses, call your state’s Department of Insurance and file a complaint.

Don’t allow yourself to be bullied by the insurance companies. But, that will require YOU to take responsibility for YOUR OWN education.

If you take control of your claims, you WILL add hundreds or even thousands more dollars to your claim settlements!

Copyright 2008 by Russell D. Longcore

And now, I’d like to invite you to get more important claims information at my website at: http://www.insurance-claim-secrets.com

I wrote a book that you need! IT’S NUMBER ONE at Amazon.com in its category!

My blog is at: http://insurance-claim-secrets.blogspot.com

Nominated for Georgia Author of the Year Award 2008

Article Source: http://EzineArticles.com/?expert=Russell_Longcore http://EzineArticles.com/?Insurance-Claims—Dealing-With-Adjusters&id=1250487

Insurance claim advance payments are not widely known by people who file claims. Often, when an insured has a loss of significant size, such as a flood, tornado, wildfire, hurricane loss or a big water damage loss, an advance payment of a portion of the anticipated settlement is issued by the insurance company. This situation also happens regularly when a business has a loss and needs money up front.

It is a customary and widely accepted practice for the insurance company to issue an advance payment in this type of instance. Be aware that there’s nothing in the standard property insurance policy that deals with advances. It is usually just a courtesy that the insurance company extends to their policyholder.

However, they don’t usually offer to do it. You have to request the advance.

Here’s an example. Joe Smith’s house is hit by lightning, and a fire damages most of the house. Joe’s policy has Building limits of $100,000, Contents limits of $50,000, ALE limits of $20,000. The house can be repaired for $70,000, which is less than the policy limits. However, the adjuster expects that the Contents loss will exceed the policy limits of $50,000, and the ALE loss will be $15,000. The adjuster sends in his first report to the insurance company, and tells them to expect the loss to be approximately $135,000 on these three parts of coverage.

The insurance company could easily issue an initial advance payment of $25,000 to $35,000 for Contents and ALE, and $40,000 to $50,000 for the Dwelling loss.

So, what do you do if your Contents are damaged and you need the most basic things, like a change of clothes and shoes? What if you need to have a contractor secure the building and put tarps on the roof to keep further rain out of the building? Most people do not have tens of thousands of dollars just lying in their bank accounts that could be used to begin repairs, or begin replacing personal property. That’s when the insurance company issues an advance.

It’s best to make your request in writing. Even if it’s just a hand-written letter, it’s best if it’s in writing. Write or type your request, keep a copy for your records, and give the copy to your adjuster. It’s also a good idea to send a duplicate copy to the claims department of your insurance company. Send it by overnight courier or certified mail. NEVER rely on the adjuster to ask for an advance on your behalf. He might get delayed with other work and it could be days before he asks. DO IT YOURSELF.

Take control of your claim, my friend! Make an EARLY request in the claims process for your advance payment!

Copyright 2008 by Russell D. Longcore

And now, I’d like to invite you to visit my website for more claims information at: http://www.insurance-claim-secrets.com

NUMBER ONE at Amazon.com in its category!

My blog is at: http://insurance-claim-secrets.blogspot.com

Nominated for Georgia Author of the Year Award 2008

Article Source: http://EzineArticles.com/?expert=Russell_Longcore [http://ezinearticles.com/?Insurance-Claims---Get-an-Advance-Payment!&id=1250540 ]http://EzineArticles.com/?Insurance-Claims—Get-an-Advance-Payment!&id=1250540

Insurance claim recorded statements. They usually go just fine, but sometimes the insurance adjuster uses tricks and gimmicks to get you to say things you shouldn’t say.

So keep a claims diary. This protects you, the policyholder or claimant, if and when you have problems with your claim.

Get a notebook or legal pad and write down EVERYTHING that happens EVERY DAY during your claim process. NEVER trust your memory.

When you speak to anyone about your claim, write it down.

Let’s talk about recorded statements and your claims diary.

Recorded statements are a normal part of the claims process. Claims adjusters usually like to get a recorded statement from all the parties in the loss early in the claims process. That way, the details of the claim are still fresh in everyone’s minds, and can be documented more accurately. Don’t be nervous about being recorded.

If the claims adjuster calls and requests a recorded statement over the telephone, politely tell him that you prefer to meet with him in person. The best scenario for you would be to meet the adjuster at your attorney’s office, and give the recorded statement in the presence of the attorney. Even uncooperative or moody adjusters seem to be on their best behavior in the presence of an attorney.

If the insurance adjuster or examiner only does recorded statements by phone, simply have the adjuster do a three-way conference call with you and your attorney.

On an in-person interview, the adjuster will have his portable tape recorder with which he will record the interview. You should also bring a portable tape recorder and tape the interview for your own protection. You can buy a hand-sized cassette recorder at any electronics store or discount department store…even major drug store chains for less than $40.00. They use standard cassette tapes and batteries. The microcassette recorders work great, too, and cost about the same. Make sure that you have plenty of fresh batteries and a few cassette tapes with you at the interview.

When the adjuster is recording your statement, don’t OFFER any information. Answer the question that he asked, and no more.

Remember that some questions do not deserve an answer.

Have you ever been in an interview, or some social situation, and someone asked you a question that made you uncomfortable? And you ANSWERED the question so they didn’t think you were impolite? Then later you hated yourself for being a doormat?

People feel a need to be nice. Adjusters take advantage of people’s need to be nice. Adjusters know that most people will answer whatever questions seem reasonable, even if the question is not relevant to the claim. Personal questions that do not have relevance to your claim should not be answered. Questions about your income, or asking for your Social Security number, may not be relevant to the claim. Questions about your income, for example, are not appropriate unless you are making a claim for lost wages.

One of the reasons that adjusters ask for your Social Security number is so they can look you up on a database called Insurance Service Office (ISO) Claimsearch. If you want to see what the Claimsearch homepage looks like, go to: claimsearch.iso.com/index.asp

Claimsearch is a searchable database that shows if you’ve ever had an insurance claim before. With your Social Security number, adjusters and claims examiners can call up all the data about you…WITHOUT YOUR PERMISSION.

If there’s a question that the adjuster asks that you don’t feel comfortable answering, politely reply “I’d rather not answer that question.” Sometimes adjusters ask inappropriate questions. Make sure that the adjuster sticks to the details of the accident or loss. If you’re in an attorney’s office at the time of the recorded statement, he’ll help the adjuster stay on track.

My belief is that you, the policyholder or claimant, should record every telephone conversation and face-to-face conversation that you have with anyone about your claim. The same electronics stores that sell the cassette recorders will stock a “pick-up” microphone that plugs into your cassette recorder and has a suction cup that sticks to your telephone handset. The quality of the sound is usually quite good.

I’m not suggesting for a moment that you should do something illegal or unethical. You need to check your state’s statutes and laws about recording conversations. Some states do not allow it unless both parties give consent. Some states allow it if only one of the parties is aware that the conversation is being recorded.

Know the law, and know your rights.

Don’t be surprised if some adjusters refuse to have their conversations recorded. That doesn’t mean that you should cave in to their lack of cooperation. You should insist on the recording, or politely refuse to speak with that person. But, it should tell you something about that person if he or she refuses to be recorded.

Be in control of when and where you accept phone calls about your claim. I’ve seen some adjusters that try to keep the insured off balance by making calls at unusual times, like early morning or late night. If you’re not ready to record the call when the phone rings, tell the person that it’s not convenient to speak right then and make an appointment to call him back. Always keep your appointments.

I can imagine that some of you reading this article think that this author is some sort of paranoid kook. Please let me assure you that I am. But I’ve seen countless situations in which an adjuster took a recorded statement, and then wrote a statement summary that wasn’t anything like the information on the tape. I’ve seen police officers fill out an accident report, and describe the accident completely wrongly. I’ve seen court testimony where the adjuster and the insured are questioned about an incident, and their stories are completely different.

Recordings of conversations put all of that to rest.

After you have a problem with a person who lies to you, or about you, it’s too late to record them then.

The old adage is, “better safe than sorry.” Sorry can cost you thousands of dollars. Keep a claims diary.

Copyright 2008 by Russell D. Longcore

And now, I’d like to invite you to get more insurance claims information at my website at: http://www.insurance-claim-secrets.com

I wrote a book that you need! IT’S NUMBER ONE at Amazon.com in its category!

My blog is at: http://insurance-claim-secrets.blogspot.com

Nominated for Georgia Author of the Year Award 2008

Article Source: http://EzineArticles.com/?expert=Russell_Longcore [http://ezinearticles.com/?Insurance-Claims---Recorded-Statements!&id=1250563 ]http://EzineArticles.com/?Insurance-Claims—Recorded-Statements!&id=1250563

A business however big or small means responsibilities of many kinds. And one of the things every business needs is liability insurance.

When running a business as a partnership or sole proprietorship it means that your business and personal liabilities are at risk. To protect yourself and the family from financial disasters it is essential to insure yourself with a business liability policy.

There are three kinds of liability insurance:

* General Liability Insurance: This covers legal suits related to the business premises, business products, or services.

* Professional Liability Insurance: Covers companies that are professional like lawyers, doctors, advertising or creative companies and so on.

* Automotive Liability Insurance: This covers those who drive company owned vehicles. The policy covers damage to vehicle in an accident, injuries to the company employee and to those injured in case of accident.

* Employers’ Liability Insurance: This covers aspects like wage discrepancy, hours of work and on site work related accidents.

When buying liability insurance you need to make educated choices so that you get a good deal at the most affordable cost:

1. First familiarize yourself with all aspects of liability insurance by surfing online. Make notes of valid tips and guidelines and any points that are applicable to you. Understand the fine points of liability insurance.

2. Decide on whether you will find a policy yourself or use an agent. Choose an agent who will study your specific needs and then make recommendations. Most agents help their clients get great rates too.

3. Check with your existing insurance provider whether they have liability insurance. If yes find out what the advantages of buying a liability policy from the same provider is.

4. Memberships at a Chamber of Commerce, trade or business association often means that you will get group rates on liability insurance policies.

5. Liability insurance coverage varies from insurer to insurer so make a list of what you need and compare coverage. Keep in mind aspects like legal fees too.

6. Look for liability insurance online and offline. Very often the online offers could mean great savings. Online insurance directories and sites also have comparison tools that help you compare policies and quotes from different insures.

7. Think about buying an Business Owners Policy (BOP),that will cover many things. However you will need an insurance specialist to ensure your needs are met with additional riders on the policy.

8. Keep abreast with changes in state laws and insurance news. This will help you greatly when you need to make a claim or renew the policy.

Always buy a business liability insurance policy from a reputed insurer. Always make the effort to do a background check of the insurer and ensure that they have no complaints pending at the better business bureau. Choose an insurance provider that follows fair business practices.

Matthew Pawlina is a writer for [http://www.1855businessinsurance.com]Business Insurance  the premier website to find Business Insurance, Small Business Insurance, Business Insurance Quote, Business Insurance Center, Business Insurance Policy, business insurance costs, and many more.

Article Source: http://EzineArticles.com/?expert=Matthew_Pawlina http://EzineArticles.com/?8-Tips-on-Protecting-Assets-With-Business-Liability-Insurance&id=1467466