Who Gets the Pay-out from Insurance After a House Fire: Owner or Premium Payer?

If your home suffers a fire and incurs damage, the policy owner can make a claim with the insurance company based on property damages. This article aims to provide a comprehensive guide on who receives the insurance payouts—whether the individual who lives there or the premium payer—along with steps to ensure a smooth claims process.

Steps to File a Fire Insurance Claim

When unfortunate circumstances like a house fire occur, it's crucial to act promptly to file a claim. Here’s a detailed guide to help navigate the process:

At the first sign of a mishap, immediately notify the insurer. Informing them as soon as possible sets the stage for a quicker and more efficient claim process.

Accurately document the extent of property damage along with an estimated cost for repairs or replacements. Providing detailed information benefits the claims process by helping assess damages more accurately.

Cooperate fully with insurance surveyors by providing any requested information or assistance. This cooperation can lead to a more expedient settlement. Even if it seems disruptive, it’s a crucial step.

Following the initial damage assessment, take a tour of the affected area with the surveyor. Understanding the full extent of the damage can help expedite the claims process.

Document Requirements for a Successful Claim

To expedite the claims process and support your case, having the correct documentation is essential. Here are the key documents required:

An authorized copy of the policy, which includes the schedule and clauses. Completely filled out claim forms. Proof of any incident coverage, such as a newspaper article if applicable. Previous claim records, if any, to establish a history of coverage. Photographs of the damage. A fire brigade report detailing the cause of the fire. Forensic reports and other related documentation that may be necessary. A copy of the final investigation report released by the insurer.

Understanding Policy Ownership and Usage

The insurance policy must be in the name of the homeowner. If it's a homeowners policy, the policy owner must also be the resident. In cases where the owner no longer resides in the home, coverage typically ends 90 days after they move out. It's important to have the correct policy type:

If you no longer live in the home or rent it out, you should cancel the homeowner’s policy and switch to a tenant-occupied dwelling fire policy.

Assuming the correct policy is in place and the owner is still the resident, the insurance payout will be made to the homeowner, and to their mortgagee if they still owe money on the home.

For more specific information, contact us at 6289-3010-12.