“Content Pack-out” is a term used by water and fire restoration contractors, and insurance companies. It is the process in which the contractor sends trucks, boxes and workers to your home. They pack any damaged personal belongings in your home or business and transport them back 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 prefer to clean or repair it and they will give it to you. This drastically reduces their claim costs, 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 seriously damaged personal property can only be cleaned or repaired successfully. Most fires burn or infuse toxic chemicals into personal belongings, such as wood or textiles. The same goes for a flood loss. My personal opinion is that replacing damaged personal property is better than repair or cleaning.
So, what’s the trap?
Insurance regulators like to flash with their favorite approved restaurant contract and do a “pack-out”. But your insurance policy has a limit for personal property. Any money that the insurance regulator authorizes you to clean up your contents is paid against the limit of the policy. So, if the restoration contractor cleans some of your damaged property but rejects it as damaged, the contract is still paid. But you have less money now to replace your damaged personal belongings.
The trap is that a pack-out can penalize you when you submit your insurance claim!
Here is the Escape Strategy
1. You own the property … not the insurance company and not the restoration contract. It is YOUR DECISION what is repaired and what is replaced, not the regulator.
2. Call your own restaurant contractor for a second opinion. It shouldn’t cost her anything, but even if she did, it would be well-spent money.
3. Make sure every item that is removed from your home is listed on an inventory sheet.
4. Based on the opinion of your employer, negotiate replacements with the regulator and resolve the claim.
If you have experienced a property loss, whether it is fire, wind, flood or otherwise, you need to know winning insurance claim strategies. The insurance company will not tell you the claim process, but I will do it. I will 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, go to the site below.