After a disaster like fire or water damage, packout and cleaning companies can step in to remove and clean your belongings. While this service is crucial for recovery, homeowners often face confusion about the process, costs, and their rights. This step-by-step guide will help you navigate the situation if your home has already been packed out.
Step 1: Obtain the Contents Inventory List
The packout company should have prepared a detailed inventory of every item removed from your home. Request a copy immediately. This list is essential in case of further loss, such as a fire at the storage facility.
Step 2: Review the Inventory and Authorization Documents
Packout companies typically inventory items in bulk or by box, often lacking specific details.
• Examine the contract or authorization you signed.
• Verify whether the insurance company has been authorized to pay the packout company directly and whether your name is included on the check.
• Request an estimate of the total packout and cleaning bill, including charges for truck rental, packing materials, storage, labor, and inventorying.
Critical: Packout charges come out of your contents policy limits, reducing the funds available to replace your belongings.
Step 3: Evaluate Cleaning Costs
Cleaning costs often represent the largest portion of the bill. Ask detailed questions about:
• Subcontracted Services: Many companies outsource tasks like dry cleaning, refinishing, or restoring artwork.
• Estimates: Obtain estimates for services like laundry and dry cleaning before work begins. You have the option to keep the payout instead of proceeding with these services, but insurance may deduct a percentage for overhead and profit.
Step 4: Ensure Accountability for Missing Items
Clothing, shoes, electronics, and other valuables can sometimes go missing.
• Ask for detailed lists of all items removed.
• Trace the movement of electronics and verify if warranties remain valid after cleaning.
Pro Tip: Document the timeline of when items were moved and where they were stored or sent for inspection.
Step 5: Verify Cleaning and Restoration Methods
Before allowing cleaning or restoration, request written estimates and detailed descriptions of methods.
• For furniture, ask about reupholstering costs versus replacement costs.
• Confirm the cleaning chemicals used and check for allergies or potential damage to the materials.
For antiques or collectibles, refinishing or cleaning may reduce their value. Ensure all actions are documented and necessary approvals are obtained.
Step 6: Address Collectibles and High-Value Items
Collectibles such as guns, jewelry, and coins require special attention.
• Will cleaning reduce their value?
• Ensure all processes are documented, and estimates are provided before work begins.
Step 7: Plan for Item Redelivery
Ask about the cost of returning your items from storage to your home.
• Confirm if the insurance policy covers the redelivery and proper placement of items under your contents limits or additional living expenses.
• Understand that many insurance policies do not include unpacking and placement services by default.
Step 8: Prepare for Policy Limits and Depreciation
Packout and cleaning charges are deducted from your contents policy limits. To avoid surprises:
• Review your policy limits and understand how depreciation impacts payouts.
• Ask the adjuster how additional costs will be handled if you reach your policy limits.
Example Calculation:
If your contents limit is $80,000 and cleaning costs $25,000, you’re left with $55,000 for replacing belongings. After further deductions, you might face a shortfall.
Step 9: Communicate Clearly with Your Insurance Adjuster
Engage in detailed discussions with your insurance adjuster.
• Who certifies the cleaning and restoration work?
• Will the insurer provide guarantees in writing?
• How will disputes or shortfalls be resolved if limits are exceeded?
Step 10: Take Control of the Process
Remember, you have a say in how your items are handled. Don’t let anyone proceed without clear cost estimates and your approval. Insurance companies and packout companies often have broad authority unless you dictate terms.
Final Thoughts
Navigating a packout and cleaning process after a disaster can feel overwhelming, but staying informed and proactive ensures you don’t lose control of your claim or finances. Use this checklist to manage costs, safeguard your belongings, and get the most from your insurance policy.
When disaster strikes, preparation and knowledge are your greatest assets. Make sure your recovery is as seamless and stress-free as possible!
