Preparation Before Filing a Claim – Third Party Insurance
A big difference between a first party and a third party claim is that with a first party claim your recovery is pretty much limited to what your policy contract says: to the dollar limits of your coverage; to your deductibles; to the occurrences that are covered; to the policy exclusions, and so on. However with a third party claim, in most states, you are entitled to recover from the third party for all damages caused by them.
To collect that from the insurer (as opposed to collecting it from the person or entity that caused your loss) you have to know what the liability policy provides to the third party by way of indemnification.
That said, the main elements of your loss (again using the example of the fire mentioned above) include:
- The cost to rebuild or replace any destroyed property.
- Your right to rebuild according to the like kind and quality of what was destroyed. Do NOT deduct for depreciation and do not accept lesser quality amenities, construction quality etc.
- Your right to recover for any medical expenses or future medical expenses.
- In many situations your right to recover for any past or future mental or emotional distress suffered as a result of what happened.
- Your right to recover for the past and future value of any lost wages or for the value of your lost time.
- Your right to recover for any incidental losses suffered such as money paid to obtain substitute housing or moving expenses.
- Your the right to be compensated for having had to liquidate stock or other investments to pay for expenses incurred.
Next: Filing a Claim