Ask Kim
8 Steps to Help Get Your Hurricane Claim Paid Quickly
Don't damage your ability to file a claim as you patch things up.
By Kimberly Lankford, Contributing Editor, Kiplinger's Personal Finance
August 29, 2011
My roof was damaged during Hurricane Irene, and the top floor of my home was ruined as a result of the accompanying rain. Do you have any tips for getting my insurance claim paid quickly?
SEE ALSO: 10 Costliest Catastrophes in the U.S.
In general, wind-driven rain and water that comes into your home through the roof, windows, doors or holes in the walls is covered by homeowners insurance. But water from the bottom up -- such as the overflow of a body of water or damages caused by a storm surge -- is not covered. You need separate flood insurance coverage for that. Your situation seems to be a clear-cut example of the type of hurricane damage that would be covered. But even homeowners who aren’t sure whether the damage to their home is covered under their policy should contact their insurer immediately.
As everyone is competing to get their claim paid first after a disaster, there are a few key steps you can take to help you move to the front of the line and make the claims process go smoothly. I visited New Orleans and Bay St. Louis, Miss., six weeks after Hurricane Katrina and talked with many homeowners about the steps they took in those first few days and weeks that made a big difference in getting their claims paid. Here’s what they recommend -- and some resources that have been improved since their experience after Katrina in 2005:
1. Get the ball rolling. Right away, contact your insurance agent, who may be able to be your advocate with the insurance company. Or contact your insurer’s claims department directly -- the Insurance Information Institute has compiled a helpful list of insurance company claims filing telephone numbers. Make the call immediately, even if you haven’t been able to catalog all of the damage yet. Katrina victims recommended keeping in touch with the insurer and agent by e-mail after that initial contact, which gives you a paper trail of the steps you have taken if you end up having any trouble getting the claim paid. Keep records of every phone call and e-mail communication you have with the insurer throughout the entire claims process.
2. Make basic repairs right away. Don’t make any big changes until you meet with the adjuster, but your insurer will want you to make some basic repairs as soon as possible -- such as putting a tarp on a roof that has been destroyed or covering broken windows -- so the damages don’t get any worse. Take pictures of the damages before you make the temporary changes, so the insurer can see what the house looked like right after the storm. And keep receipts for the money you spend on materials, which may be reimbursed by your insurer.
3. Compile an inventory. This step will be easiest if you already have a home inventory that you kept in a safe place before the hurricane. You’ll be able to hand it to the adjuster, who can immediately see what items you have lost. Also ask the insurer right away about any required forms you must submit, so you can start filling them out immediately and tracking down any extra documentation. If you didn’t have an inventory, you can start piecing one together now. The Insurance Information Institute’s Know Your Stuff walks you room by room and can be a great way to jog your memory. If your files and photos haven’t been destroyed, you can also go through your records for any receipts for valuable items or look for photos you had taken in your home that show the items and the home before it was damaged. Then take photos or videos of the damages as soon as you can get back in the home, so the insurer can see the difference. Don’t throw away any of the damaged items until the adjuster visits your home.
You can also start to get bids from contractors to show how much they say it will cost to fix the damage, but don’t make any commitments until you get approval from the insurance company (and beware of rogue contractors, who travel to towns that have been hit by disasters, ask for a lot of money upfront, then disappear). See the Insurance Information Institute’s Settling Claims After a Disaster guide for more information about how to compile your inventory and the factors that determine how much you can get from the insurer. And the III’s Hurricane Irene FAQs have a lot of great information specifically about claims for this hurricane.
4. Meet face-to-face with the adjuster. Getting an appointment with the insurance company’s adjuster can be a challenge after a major disaster; some people had to wait for several weeks after Hurricane Katrina. But no matter when the adjuster arrives, try to be there in person for the appointment -- even if you’re still evacuated and living elsewhere before your home is repaired -- so you can walk through the house together and you can help explain what was damaged.
5. Keep receipts for expenses while you’re evacuated. If you can’t live in your house for a while because of the damages, your insurer may pay living expenses, such as for a hotel room and meals, up to a daily limit. The insurer may give you some of the money upfront -- before your full claim is settled -- to help you cover the expenses right after the disaster.
6. Keep detailed records of every repair. After you get the go-ahead from the insurer to start getting the house fixed, keep detailed records of every repair. One New Orleans homeowner I talked with whose claim was paid in just two weeks -- while many of his neighbors waited for their money -- organized a tabbed binder with about 50 pages that itemized every expense, including receipts, canceled checks, a detailed description of every repair made and steps taken to mitigate the damage, and living expenses he incurred while he was evacuated.
7. Know when to get a second opinion. If you have any trouble getting your claim paid, first find out your insurer’s procedure for contesting a claim settlement. It can help to contact a public adjuster yourself to assess the damages. (You can find an accredited public adjuster through the National Association of Public Insurance Adjusters.) And you may want to file a complaint with your state insurance department, which may offer a mediation program so you can avoid going to court. See the National Association of Insurance Commissioners Web site for links to each state’s insurance department Web site. This site also has a lot of helpful information about filing insurance claims.
8. Find out about other benefits. You may also be able to get help from the Federal Emergency Management Agency or get an income-tax break for any uninsured losses. (You won’t have insurance coverage for flood damage unless you have a separate policy from the federal government’s National Flood Insurance Program). See Protect Your Home and Finances Against Floods for more information and resources.
And for more information about insurance claims for hurricanes, see Make Your Insurer Pay and Insurance Lessons After Katrina.
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