This question relates to the recent fires we had here in San Diego that destroyed several homes. One of the local radio stations was raising money to help some of the 8-10 families that lost their houses and got tens of thousands of dollars in donations.
My wife insisted I give to this charity and while I am all for helping people out, I hate when people TELL me I have to give to one. But that’s not the point. I suggested these people probably had (or should have had) home-owners’ insurance for just this sort of thing and that the donations might not have even been needed.
Well, asside from her calling me a heartless bastard, she summarily stated that “oh course you know it takes forever for their insurance money to kick in”. So I ask, is this true? Considering these people lost everything they owned, and it was obviously due to the brush fire (i.e. no investigation of foul play is needed), I would think the insurance company would pay up pretty quickly, lest they get sued. Has anyone out there lost a home due to fire, flood, etc.? And if so, how long did it take to get paid?
Home owners’ insurance is effective immediately; the mortgage company isn’t taking any chances.
However, the vast majority of home renters are not insured. I’d say give to the fund if you want, or certainly don’t castigate your wife for wanting to. The last thing a person who has just lost everything they own is: tough luck, you should have bought insurance.
I think Yarster was asking how long it would take for these people to receive money from their insurance company.
Unfortunately I think it’s one of those “it depends” questions. Who is the insurance company? How easy is it to assign balame? etc?
ASD’s right, that was the clearly the intent of the O.P. In just about all major insurance companies, there is a mechanism in place to allow for emergency cash. A claims adjustor tends to arrive VERY quickly in the case of a catastrophic loss. Total loss to fire is surely considered a catastrophe. You might not have documented the contents at all ( I haven’t, and I know better, I should have photos AND videotapes of all contents, with lists to match…<sigh>). However, documented or not, the home itself was insured and you probably had some amount of insurance for contents. The company will front you some money to get you into a hotel, clothing, etc.
Check to see if your insurance will cover rental of a car if your vehicles were destroyed in your home when it burned down. Stuff like that can really save ya. the Red Cross, and similar agencies, are set up to supply short term clothing and other essentials.
When Hugo hit here (the 1989 hurricane), insurance companies paid immediately whatever seemed a reasonable request. They did not have the manpower to have claim adjusters go around to all the houses. So, in a disaster-crisis like that, they cough up ASAP, no questions asked. I know a lot of people made out like bandits. Many got paid for repair work they did themselves, etc.