After fire or water damage, what do you have left? A destroyed home and complete chaos. And often, the very next day, a team of contractors shows up at your door with boxes, plastic wrap, and a readiness to “pack out” everything in sight. In the middle of that stress, it’s easy to agree, just wanting it all to be over faster. But this is exactly when you can lose control – of your belongings, your insurance claim, and your money.
At On-Site Adjusting, we’ve learned one key truth over the years: a rushed pack-out decision for contents cleaning and restoration can cost you tens of thousands of dollars.
That’s why, before you sign anything, it’s worth understanding what salvage and non-salvage mean, how the cleaning allowance works, and why it’s so important to keep the initiative in your own hands. Let’s talk about that below.
What Is Contents Coverage in Your Insurance Policy?
When we talk about Contents Coverage, we mean everything inside your home that isn’t a part of the structure itself. These are your personal belongings:
- furniture;
- electronics;
- clothing and accessories;
- tools;
- décor.
In short, Contents Coverage includes everything you’d take with you if you were to move out.
But it’s not only about what’s covered – it’s also about how it’s valued. Every insurance policy has a section called Loss Settlement Conditions. That’s where it’s defined whether your insurer will pay you the replacement cost value (RCV) or only the actual cash value (ACV) – the depreciated amount. This section also explains the conditions for cleaning, repair, or compensation.
It’s not easy to figure this out alone. But it becomes much simpler with a claims professional – someone who knows how to read, interpret, and negotiate the terms to secure the maximum payout. When it comes to a business property, a contents adjuster also gets involved. They help account for income loss caused by property damage.
Feeling stuck with your claim? You don’t have to fight alone.
Reach out to us — we will review your claim for free and help you understand your options
Salvage vs. Non-Salvage — What’s the Difference?
When your belongings are damaged, the key question is: can they still be saved, or not? This determines whether you’ll receive compensation for replacement or only for cleaning.
| Personal Item Condition | Salvage | Non-Salvage |
|---|---|---|
| Can be cleaned, repaired, or dried | ✔️ | ❌ |
| Suitable for repair | ✔️ | ❌ |
| Too damaged (cheaper to buy new than to restore) | ❌ | ✔️ |
| Needs full replacement | ❌ | ✔️ |
| Received high heat exposure | ❌ | ✔️ |
| Detected heavy soot damage | ❌ | ✔️ |
It seems simple — but here’s the catch: it’s not just the vendor or insurer who decides. You, as the policyholder, have the right to influence this assessment. As claim adjusters, we often challenge incorrect classifications, because they directly affect:
- how much money you receive;
- whether your policy limits are preserved;
- whether the homeowner be able to use the loss of use coverage if the item is essential for living or poses a financial risk to the business.
Don’t let outsiders decide what’s worth saving. Involve an independent, accredited claims adjuster who protects your interests – not someone else’s profit.
Why You Shouldn’t Rush Into a Pack-Out
Mitigation companies often act fast and apply pressure. “Sign now, and we’ll take care of everything,” they say. But the moment you sign, you give up your rights. From that point on, someone else decides:
- which of your belongings are taken out;
- when and under what conditions they are returned;
- how the services are billed.
We’ve seen cases where personal property was practically held hostage until the client paid in full. We’ve also seen double billing, inflated prices, and items that could have been saved being marked as non-salvage – to increase the compensation amount not for you, but for the contractor.
However, as soon as you give permission to remove your belongings, you effectively lose leverage. From that point on, decisions are made not by the insurer, nor by you, but by the company with which the contract is signed. Therefore, don’t rush — take photos of everything and first consult with a licensed adjuster claim.
There is another hidden trap. When pack-out companies return items, they often ask the owner to sign a Letter of Satisfaction. During the pack-back process, a supervisor may perform a so-called “smell test”:
- They give you, for example, a T-shirt;
- Ask you to smell it;
- Ask whether it smells clean.
If you agree, you are quickly pushed to sign. Later, after a few weeks, it may turn out that other items still carry a smoke odor. At that point, the company simply shows your signature on the Letter of Satisfaction.
To avoid this, it’s advisable to involve an industrial hygienist. They inspect salvageable contents before removal and test them again after return to ensure actual cleaning quality. The good news is that in many cases, this service is covered by the insurance company — you just need to request it.
The Power of Requesting a “Cleaning Allowance”
Your policy provides a cleaning allowance under the Loss Settlement condition of the insurance policy. And here is the good news: you can receive these funds directly from the insurance company, without involving a vendor.
At On-Site Adjusting, we’ve helped clients receive anywhere from $50,000 to $150,000 in cleaning allowances. That’s enough to buy completely new furniture and clothing. So why agree to clean old items when you can take the cash instead? The answer is obvious.
For example, if the insurer approves $80,000 for cleaning, clothing restoration or contents restoration, all of that money is yours. You decide for yourself how to spend it (professional cleaning or replacement). Only the following can discuss these terms, interpret the wording, and make payments based on the policy language:
- home and business public adjusters;
- attorneys;
- the policyholders themselves.
Restoration contractors or insurance vendors do not have those rights.
Common Mistakes Homeowners Make with Contents Claims
When your home is damaged, your belongings are in disarray, vendors are rushing, and the insurer stays silent – it’s easy to overlook details that can cost you thousands later. Here are the most common mistakes:
- Signing vendor contracts without understanding the limits of your contents coverage. Contractors can burn through your limits before you ever see compensation.
- Letting vendors over-inventory or misclassify items. This affects your payout and whether you can use loss of use coverage homeowners.
- Not taking photos before the pack-out. Without them, you can’t prove what items were in your home or their condition.
- Missing the chance to claim depreciation reimbursement. If you don’t request Replacement Cost Value (RCV), the insurer may only pay Actual Cash Value (ACV) – which is less.
- Signing vendor contracts without reading the fine print. Many homeowners overlook hidden costs and extra services that the insurer won’t cover.
Want to avoid these mistakes? Contact adjuster companies like On-Site Adjusting.
How On-Site Adjusting Protects Your Contents Coverage
Contractors count your items. Insurers count your limits. Someone needs to count your interests – and that’s us, licensed adjusters.
Our adjuster services include:
- Reviewing and documenting all items with photographic and written inventory;
- Challenging incorrect non-salvage classifications;
- Calculating fair cleaning and replacement values;
- Negotiating a cleaning allowance to keep funds in your hands;
- Preventing overbilling and policy limit exhaustion by contents restoration vendors.
We are officially licensed in Illinois, Wisconsin, and California. We know local regulations, hold active licenses, and always work on your side.
Final Thoughts
Knowledge is power – and in insurance, it’s money. Don’t let outside vendors or insurers decide the fate of your property. Before signing any contracts, consult with an accredited claims adjuster.
Want to learn how our claim inspector can help you? Call the On-Site Adjusting team at (866) 861-4992 or (866) 933-0404, or fill out our contact form.
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