Tea "Pack-out content" Trap and how to escape from it

“Contents packaging” 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 your home. They pack up all damaged personal property in your home or business and transport it back to your warehouse. Once the personal property is in storage, the contractor begins the cleaning and restoration process.

Insurance companies don’t like to replace personal property. They prefer to clean or repair it and return it to you. That dramatically reduces the cost of their claims, making 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 instances where severely damaged personal property can be successfully cleaned or repaired. 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 replacing damaged personal property is better than repairing or cleaning.

So what is the catch?

Insurance adjusters like to meet with their favorite approved restoration contractor and do some “packing.” But your insurance policy has a personal property limit. All money that the insurance adjuster authorizes to clean its contents is paid against the policy limit. So if the restoration contractor cleans up a portion 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 is the escape strategy

1. You own the personal property … not the insurance company or the restoration contractor. It is YOUR DECISION what gets repaired and what gets 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. In the opinion of your contractor, negotiate replacements with the adjuster and resolve the claim.

If you’ve experienced a property loss, be it fire, wind, flood, or otherwise, you need to know the winning strategies for insurance claims. The insurance company will not inform you about 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, visit the website listed below.