“Pack-out content” is a term used by contractors to restore water and fire and by insurance companies. It is the process where the contractor sends trucks, boxes and workers to your home. They pack all damaged personal property in the home or business and return it to their warehouse. Once the personal property is in the warehouse, the contractor begins the cleaning and restoration process.
Insurance companies don’t like to replace personal property. They would prefer to clean or repair it and return it to you. This drastically reduces the costs of requests, which makes them happy.
I have been an insurance adjuster for over 16 years and in the insurance industry for over 35 years. I have seen very few cases where severely damaged personal property can be simply cleaned or successfully repaired. Most fires burn or infuse toxic chemicals into personal properties, such as wood or textiles. The same goes for a flood loss. My personal opinion is that replacing damaged personal property is better than repairing or cleaning.
So what is the trap?
Insurance regulators like to get in touch with their favorite approved restoration contractor and make a “package”. But your insurance policy has a limit on personal property. All the money that the insurance regulator authorizes to clean up your content is paid against the policy limit. So if the restoration contractor cleans up a pile of your damaged property, but rejects it as damaged, the contractor is still paid. But now you have less money to replace your damaged personal property.
The pitfall is that a package can penalize you when you submit your insurance claim!
Here is the escape strategy
1. You own personal property … not the insurance company and not the restoration contractor. IT IS YOUR DECISION what is repaired and what is replaced, not the regulator.
2. Contact your contractor for restoration for a second opinion. It shouldn’t cost you anything, but even if it did, it would be money well spent.
3. Make sure that every single item removed from your home is listed on an inventory sheet.
4. Based on the contractor’s opinion, negotiate replacements with the regulator and settle the complaint.
If you have suffered a loss of property, be it fire, wind, floods or anything else, you need to know the winning strategies for insurance claims. The insurance company won’t tell you the complaint process, but I will. I’ll show you how to take control of your claim and how to add hundreds or even thousands of dollars more to your claim. For more information, visit the website listed below.
by Russell Longcore