Anonymous

My familys house burnt down?

My family's home burnt down a few days ago. We lost everything. But the good news is, we have wonderful insurance and most of our material things will be replaced. My question is, how does that work? How can you find the cost of every single thing in the house if all our receipts are gone? How do they restore smoke damaged items? The insurance company put my parents in a hotel but how long does that last? The whole thing baffles me as I am still in shock.

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  • Anonymous
    9 years ago
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    Suddenly finding yourself without a home is one of life's greatest tragedies and I feel sorry for you. I assume it was total loss.

    If you look at your insurance policy you will see what your house has been valued at. That is the sum you will likely receive and it's up to you to spend the money as wisely as you can in choosing your new home. When it comes to contents, the policy will also have a monetary value stipulated and that is the sum you will receive regardless of the value of the individual items. Once again, replacing the contents is up to you to choose wisely and get the best value for money you can. You will probably find the insurance company will pay you with a single check to the total value.

    As far as the time it will take to finalize the claim, it's likely to be reasonably quick as in a matter of weeks because the hotel bill escalates the total cost of the claim payout by the insurance company.

    Insurance companies also take into account that in the case of a house fire everything will be lost including receipts and proof of ownership of individual items, so that's why they pay you a lump sum to cover these items. If some items are smoke damaged and you can recover them it's usually up to you to restore them as best you can at your cost because they have already been accounted for as part of the contents.

    Putting it basically, the insurance company simply considers it a total loss event and pays you a total loss sum of money plus an amount to cover temporary accommodation.

    Difficult as it may be to do so at the moment, you will need to start putting tentative plans together as soon as possible for the time when the insurance company completes the claim and gives you notice that the temporary accommodation will cease. You don't want to be spending money from the insurance claim on rented premises.

    Source(s): My ex-wife used to work in Claims at a major insurance company and often discussed her work.
  • 9 years ago

    they have a massive graph on the ground with many boxes with amounts of money in, they cut a chickens head off and throw it on to the graph and whichever box it lands on when it stops running and dies is the amount you get...the boxes range between £500 - £1 000 000

    Source(s): i work for an insurance company
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