“Content pack-out” is a term used by water and fire restoration contractors, and insurance companies. This is the process by which the contractor sends trucks, boxes and workers to your home. They packed all the damaged personal property in your home or business and moved 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 prefer to clean or repair it and give it back to you. Which drastically sliced their claims cost, which makes them happy.
I have been an insurance adjuster for more than 16 years and in the insurance business for more than 35 years. I’ve seen very few instances that seriously damaged personal property can only be cleaned or repaired successfully. Most fires burn or infuse toxic chemicals into personal property, such as wood or textiles. The same goes for a flood loss. My personal opinion is that replacement of damaged personal property is better than repair or cleaning.
What is the trap?
Insurance adjusters like to run up with their favorite approved restoration contractor and make a “pack-out.” However, your insurance policy has a limit on personal property. The money that the insurance adjusts to purify your contents is paid against the policy limit. So if the restoration contractor cleans a bunch of your damaged property, but you reject it as damaged, the contractor is still paid. Now you have less money to replace your damaged personal property.
The trap is that a pack-out can penalize you when you submit your insurance claim!
Here’s Escape Escape Strategy
1. You have the personal property … not the insurance company and not the restoration contractor. It is your decision that has been repaired and that replaced, not the adjustment.
2. Call your own restoration contractor for a second opinion. It should not cost you anything, but even if it were, it would be well spent money.
3. Make sure that every item that is removed from your home is listed on an inventory page.
4. Based on your contractor opinion, negotiate the replacements with the adjustment and settle the claim.
If you have experienced a property loss, whether fire, wind, flood or others, you need to know winning strategies for insurance claim. 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 to your statement. For more information, go to the website listed.