“Package of contents” is a term used by fire and water restoration contractors and insurance companies. It is the process in which the contractor sends trucks, boxes and workers to his address. They pack up all damaged personal property in your home or business and transport it back to their warehouse. Once the personal property is in the warehouse, the contractor begins the cleaning and restoration process.

Insurance companies do not like to replace personal property. They would rather clean it or repair it and return it to you. That drastically reduces the cost of their claims, which makes them happy.

I have been an insurance adjuster for over 16 years and in the insurance business for over 35 years. I have seen very few cases where severely damaged personal property can be successfully cleaned or repaired. Most fires burn or inject toxic chemicals into personal property, such as wood or textiles. The same is true with a flood loss. My personal opinion is that it is better to replace damaged personal property than to repair or clean it.

So what’s the catch?

Insurance adjusters like to swoop in with their favorite approved restoration contractor and do some “bundling.” But your insurance policy has a personal property limit. Any money the insurance adjuster authorizes to clean up your contents is paid against the policy limit. So if the restoration contractor cleans up a lot of your damaged property, but you reject it as damaged, the contractor still gets paid. But now you have less money to replace your damaged personal property.

The catch is that a package can penalize you when you file your insurance claim!

Here’s the escape strategy

1. You own the personal property…not the insurance company or restoration contractor. It is YOUR CHOICE what is repaired and replaced, not the adjuster.

2. Call your own restoration contractor for a second opinion. It shouldn’t cost you anything, but even if it did, it would be money well spent.

3. Make sure all items removed from your home are listed on an inventory sheet.

4. Based on your contractor’s opinion, negotiate replacements with the adjuster and settle the claim.

If you have suffered a property loss, whether from fire, wind, flood or other, you need to know how to win insurance claim strategies. The insurance company will not tell you the claims process, but I will. I’ll show you how to take control of your insurance claim and add hundreds or even thousands of dollars more to your claim settlement. For more information, please visit the website listed below.