Hurricane Insurance Claims 101

With Florida and the much of the southeast sustaining some form of damage from Hurricane Helene, insurance (both flood and homeowners' insurance) claims will be filed with carriers to help assist with the loss and re-build. Here are some helpful tips as you begin your insurance claim process.

1. Document Your Claim

Photos and video of the interior and exterior are helpful support your claim. Prepare a written inventory of all contents/personal property. A written inventory that includes will be very helpful to claim success: item description, cost paid, how you paid for it, when you paid for it, where you purchased and current replacement cost.?

2. Claim Reporting

Contact your insurance carriers (homeowners and flood) as soon as practicable to report any claim. Additionally, make a FEMA claim as soon as possible.

3. Mitigate Your Damages

Nearly all insurance policies have an obligation to mitigate your damages and preserve your property. Does this mean you have to pay out of pocket to replace your roof the week after the storm, no. This means you would tarp any roof breaches to prevent worsening damage.

4. Loss of Use Benefits

Confirm if you have loss of use/additional living expense coverage, which would cover hotel, dining out etc. Request these benefits on your claim call. Keep receipts for such expenses.

5. Cat Adjusters

It’s likely that you will be dealing with a cat(astrophe) adjuster that is not local and they will be inundated with claims. You will get limited time with them in person. Be patient as this is a feature of a large-scale disaster.

6. Adjuster Interactions

Less is more relative to your interactions with the adjuster, your gratuitous words may all invoke coverage defenses; “well the lanai was old anyway.” Don’t tell them what you think happened, just exhibit the property. Homeowners policies don’t cover flood and windstorm coverage is very nuanced, i.e.: wind driven rain.

7. Contractor Solicitation

Be wary of any contractors/roofers or other workers that come to your door or who want cash up front. There are so many hurricane scams. There are plenty of legitimate contractors that will descend upon storm ravaged areas, but they won’t employ a hard sell at your door while promising things that sound too good to be true. Also, understand the import of an assignment of benefits document that you are requested to sign. This means your insurance benefits would go to the contractor directly.

8. Mortgage Assistance

In times of natural disasters lenders will offer programs to assist their affected borrowers. Be careful to understand what you are signing/agreeing to. Many of these forbearance programs have unreasonable repayment terms. For example, you would have 90-120 days of forbearance but would have to pay all back payments at the end of the 90/120 day term. Some programs have modification elements which lessen the burden.

9. FEMA Disaster Benefits

Apply for FEMA disaster benefits that include lodging/loss of use. https://www.disasterassistance.gov/?

10. Post Loss Obligations

Understand that insurance policies impose post loss obligations on a homeowner in order to support the claim. ?This includes providing documents, photos, exhibiting the property, submitting a Sworn Statement in Proof of Loss or even submitting to an Examination Under Oath. ?You want to meet and exceed the requests of your carrier.?

11. Communications In Writing

Communications with your adjuster are better in writing. ?Phone calls don’t tell the story after the fact.

12. Clear Major Repairs with Carrier

While the burden is lessened during a disaster, you don’t want to give the carrier a spoliation of evidence basis to deny your claim. ?For example, there could be question as to causation and the rapid repair of your residence, prior to exhibiting the property, could result in claim issues. ?Disposing of damaged property (contents, flooring, drywall) without photographs, video or exhibiting the property could present problems. ?

Insurance claims after a large-scale hurricane will be a slow process. Be patient, but also make sure you meet all requests from your insurance adjuster.

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