Rebuilding homes damaged by destructive storms like Hurricanes Milton and Helene is priority No. 1 for homeowners looking to put their lives back together. Filing an insurance claim wisely will help pay for the recovery.
Doing repairs, restoration, and reconstruction is costly. That's why it's critical for the homeowners with property and casualty insurance policies to put their best foot forward when filing an insurance claim. A well-thought-out claim will help to ensure they get the compensation they deserve. And remember, water-related damage caused by floods is not covered by traditional homeowners. You need a separate flood policy, either from the National Flood Insurance Program or a private insurer, to cover damage caused by water inundation.
Filing a claim in a timely manner is key. But homeowners must also treat their damaged property like a detective would a crime scene. It is vital to document the damage as accurately and fully as possible. And, if possible, pinpoint the cause of the damage, such as wind blowing off a roof, a tree falling on the family room, or rising floodwaters turning a living room into a lake.
"The biggest thing is having clear documentary evidence," said Daniel Schwarcz, a law professor specializing in insurance at the University of Minnesota.
Here are five claim-filing tips that can help you state your case to the insurance adjuster. Following these suggestions can boost the chances of your insurer approving your claim. And that ups the odds you'll get the full payout your policy calls for.
Filing An Insurance Claim ASAP
File your claim as quickly as possible after a loss to maximize success. That means either online or via your insurer's app or over the phone or in person. "It's usually a first-come, first-serve basis in terms of sending out an adjuster," said Shannon Martin, an insurance analyst at Bankrate.com.
It's also vital that you respond in a timely manner to any communication you receive from your insurer. That helps avoid delays or denials of coverage. Indeed, one of the top reasons claims are denied is policyholders take too long to file or don't meet an insurer's "time-sensitive requirements," according to SelectQuote.
"Whether it's a phone call or email or text message, you want to make sure you respond immediately," said Martin.
Gather And Provide 'Evidence' Of Damage
Detail your damages with the thoroughness that a prosecutor uses to build a case against a plaintiff. The more details the better. To have the best chance of a positive claim outcome, you must do this: "Document! Document! Document!" said Leslie Kasperowicz, an insurance expert and executive editor at Insurance.com. "You want to take pictures and videos and get as much documentation of the damage as you can because the insurance company is going to want you to show that the damage was caused by the natural disaster." And that includes damage or loss of personal belongings and property like computers and furniture.
Indeed, another common reason why claims are denied is due to homeowners not providing enough information to the insurance company, SelectQuote says.
Hopefully, you have taken photos of your home and created an inventory and itemized list of your personal belongings before a storm causes damage. The reason: it's critical to show the adjuster images of your home before a disaster strikes and after, says Schwarcz. "The images are time-sensitive," said Schwarcz. He notes that photo time stamps provide insurance adjusters with a damage timeline.
Create A Paper Trail When Filing An Insurance Claim
Keeping track of all correspondence with the insurance company and adjuster is critical. Keep all receipts related to your claim. Those range from repair costs to hotel costs if your home is uninhabitable after a natural disaster like a hurricane. The burden is on you to document your claim-related expenses.
"If you're spending money on repairs, you need to document it so you can get compensated when you submit a claim," said Schwarcz.
Avoid Paying Higher Surge-Pricing Repair Costs
In the aftermath of a storm, there's added demand for home repairs. That could drive up prices well beyond what an insurance company considers true replacement cost. Replacement cost is how much money it takes to repair your home at today's prices. That includes today's prices for building supplies and labor. So, it's best to get the fixes done sooner rather than later. But be aware if you pay at surge pricing rates, you might not be fully covered for the work.
"The insurer is going to pay you based on the amount they think it should cost to repair, not necessarily based on the amount that you pay," said Schwarcz.
It's also important to get clarity from your insurer as to what immediate repairs can be done to your home without jeopardizing your claim. In general, insurers will reimburse you for any quick fixes made to ensure no additional damage occurs to the home, experts say.
Meet With Claims Adjuster In Person At Home Site
Be sure to meet your claims adjuster in person when they come to tally up the damage. Not doing so a big no-no. "You definitely should be there," said Martin. "The one meeting you don't want to miss is when an adjuster or insurance company representative is going to be at your home."
Meet the adjuster face-to-face and get their name and contact information. It's also prudent to ask the adjuster if he or she has experience dealing with catastrophic events like hurricanes or intense rainstorms.
"It might be an adjuster that's maybe flown in from Connecticut who has only overseen smaller, more standard type claims," said Martin. "You want to make sure your adjuster has the type of experience that is needed to properly handle the claim."
And during the claims process, don't be afraid to ask questions, adds Kasperowicz. "Get the adjuster on the phone and go through all of your questions and make sure you understand exactly what's expected of you," said Kasperowicz. "I kind of compare it to the doctor: If you don't tell the doctor all your symptoms, they're not going to figure out what's going on."
Be Patient, Too, When Filing An Insurance Claim
Due to the increase in the number of severe storms, it is taking "notably longer" to complete the entire claims process, according to J.D. Power's "2024 U.S. Property Claims Satisfaction Study." That said, policy holders that use digital tools to report their claims and submit photos to identify damage "experience faster claim cycle times," the study found.
Lastly, make sure you know what your homeowner's policy covers and does not cover, says Kasperowicz. And replacement costs, which include cost of materials and labor, rose 55% in the period from 2019 to 2022, according to the Insurance Information Institute. Due to inflation, there's a chance the coverage you have won't be enough to cover the full cost of your home's replacement costs, experts say.
"A lot of people don't know all the things that are covered, so they don't file claims for everything that's available to them," said Kasperowicz. Examples include food that spoils in the refrigerator when the electricity goes out or hotel bills you incur if you must relocate due to storm damage.
