The Honor System
Ken and Virginia Dawson survived hurricane Andrew. Unfortunately, their house didn’t. Part of their roof was ripped off by 120 mph winds and torrential rains flooded the contents of this home. When they could find a working telephone, they called their agent. The agent felt bad for them, he said, but while the structure was covered for flood damage, it seemed the contents of their house just wasn’t included in the coverage. The Insurance adjuster arrived and shared the agent’s sympathies.

“You’ve got no coverage for your contents, folks. “ He shook his head as he surveyed the water-logged family room. Carpets were soaked, water and debris stained the walls, all the electrical equipment - from television to stereo to VCR - was destroyed, and the furniture was already warped from water and humidity. Damages in the tens of thousands.

The adjuster made a few notes, placed a consoling arm on Ken’s shoulder and offered him a deal. “Tell you what I'll do, folks. You didn’t really buy a policy for the contents, but I’ll see if I can get the rugs covered. I will get them to clean your carpets. Of course, this will be just between you and me.”

Wow! What a great guy! The Dawsons’ got something they were entitled to and felt their adjuster was the best. That’s the way the honor System Works ...Against you.

Truth is, in order for you not to have coverage of your contents under a flood policy, you must sign to decline it. The Dawsons never signed that waiver. Their insurance company’s captured agent failed to endorse the contents when he filed a flood policy. It was his mistake. That mistake is covered by the insurance company’s errors and omissions policy. The agent knew, that the adjuster knew that, but the Dawsons did not. If they had been aware, the insurance company would have paid for everything, not just cleaned their carpets.

The MySmartClaims process will ensure you recover the maximum amount you are entitled to.

Sales Tax Omission
When Mike and Dottie Cone tell how the burglars took everything, they always have to emphasize the word "everything". Not only were their televisions and jewelry stolen, but whole rooms of furniture, as well. It was as if burglars had backed up a moving van to their front door and literally cleaned them out.

The insurance company adjuster was very nice. He gave the Cones several Personal Property Inventory forms to fill out and left them to make their list. It was difficult remembering what was taken and how much each item would cost to replace. It took several days before they felt their list was ready. The dollar amount seemed huge, but after all, it was most of their belongings and several rooms of furniture!

The adjuster approved their list and their amount. A check was issued and the Cones began repurchasing their life.
Truth is, the Cones will spend a lot more than the amount of their check. Nobody told them to include their state’s sales tax in the list and they were in such shock following the burglary that sales tax never entered their minds. But the Cones paid the sales tax the first time they purchased those items. This time, it’s the insurance company’s responsibility. The insurance company knew the Cones forgot about the sales tax, but they were under no obligation to point it out.

In a major loss, sales tax can reach into the thousands of dollars. Who is deserving of the money? Surely not the insurance company.

MySmartClaims accounts for sales tax and many other items usually left off the insurance company’s estimate.

Actual Cash Value Retention
The adjuster spent a long time examining what was left of Carol Disney’s business, following Hurricane Hugo. Her boutique, a freestanding storefront in a neighborhood mall lost more than contents. Whole walls were knocked in, the roof landed two blocks away and still standing walls were filled with salty water.

“Looks to be about $70,000 to put you back together again, Ms. Disney,” offered the adjuster. “I’ll write you a check now. But, the insurance company wants to make certain you actually do the repairs, so they will need to hold back about $14,000 until the job is started. Then you can get the rest. Soon as you show me a contract between you and a contractor, or a purchase order that proves you started the job yourself, the rest of the money is yours. Of course, if you do the job yourself, we’re going to have to subtract the 21% profit margin that contractors add in for themselves. After all, you are not a contractor are you?”

Truth is, the insurance company is rushing Carol into finding someone who will do the repairs for their $70,000 estimate, just so she can get the dollars that were held back. She’ll find a contractor who will either lie for her (which is illegal) or tell her he’ll fix it for the estimated price. Now the insurance company will hold Carol to the lower figure, even though it probably won’t be enough. The only way to get around this trick is to take your time and start out with the correct numbers. Get a line-by-line estimate so you know what can be done for what price. Present a copy to your adjuster and tell him you want the rest of your money. Then let him hold back to 21%. Tell him he’s right that you are not a contractor and shouldn’t receive the profit margin. But, don’t forget to add that you can’t buy materials for the same price a contractor can. Retail prices are 40% higher. So, make sure he figures the entire estimate at a 40% higher price, after he removes the 21%.

MySmartClaims will provide a detailed report of all repair and reconstruction costs at the then current material and labor costs