Managing Insurance After A House Fire

Dealing with the aftermath of a house fire can be a stressful and overwhelming experience. One of the most important things to do is to file an insurance claim to help you get back on your feet. Here are some key steps to managing your insurance in the event of a house fire:

- Contact your insurance company as soon as possible to notify them of the fire. Most insurance providers expect prompt notification.

- If your home is uninhabitable, discuss additional living expenses (ALE) with your insurance company to cover temporary housing and other daily needs.

- Document the damage with photos or videos, capturing the damage to the structure and your personal belongings.

- Secure your property to prevent further damage or vandalism. This may include covering openings, turning off utilities, and boarding up the property.

- Prepare an inventory of damaged or destroyed items, including descriptions, ages, and replacement cost values.

- Familiarise yourself with your insurance policy to understand your coverage and what the company requires from you during the claims process.

- Keep all receipts and documentation related to your expenses and communicate in writing with your insurance company and its adjuster.

- Be prepared to negotiate with the insurance adjuster if you feel their initial settlement offer is too low.

Understand your insurance policy

Understanding your insurance policy is key to managing your insurance in the event of a house fire. The process of dealing with an insurance adjuster can be overwhelming, especially during an already stressful time, so it's important to know what to expect. Here are some key things to keep in mind:

Insurance Declaration

The declaration provides an overview of your insurance policy. It includes all identifying information, such as the insured parties, your policy limits, what the policy covers, and the policy period. Knowing what your policy covers is crucial to understanding what you can claim for.

Insuring Agreement

The insuring agreement outlines what the insurance company will cover in the event of a fire. This section describes the "covered perils", which are the specific events or incidents that the insurance company will provide financial protection for. Fires are commonly considered a covered peril. This section may also include information about what the insurance company won't cover, such as damages caused by poor maintenance of the property.

Exclusions

The exclusions section is critical to understand as it outlines what the insurance company won't cover. Insurance companies often exclude certain cases because they are too expensive to cover completely. For example, fire insurance typically doesn't cover fires that were set deliberately or due to acts of war or nuclear risks.

Conditions

The conditions section outlines the requirements you need to meet when filing a claim. Be sure to review this section thoroughly, as your insurance company may deny your claim if you don't meet these conditions.

Definitions

While usually a smaller section, the definitions page is important as it helps you understand any technical phrases or words used in your policy. This can be especially helpful if you're unsure about specific insurance terminology.

Types of Coverage

Standard homeowners insurance offers several types of coverage that can help in the event of a fire:

• Structural coverage ensures your home is covered in case of fire, hurricane, or tornado damage.
• Personal belongings coverage protects your furniture, clothes, and other personal items if they are destroyed in a fire or natural disaster.
• Liability protection covers you against bodily injury or property damage lawsuits that may arise as a result of the fire.
• Additional living expenses cover the costs of meals and lodging if you need to live away from home due to fire damage.

Understanding Your Coverage

It's important to know whether your policy covers the "actual cash value" or "replacement cost" of your belongings. Actual cash value policies will reimburse you for the value of your belongings at the time of the loss, taking into account depreciation. On the other hand, replacement cost policies will provide you with the money needed to replace your belongings without deducting for depreciation.

Dealing with Adjusters

Remember that the insurance adjuster works for the insurance company and acts in their best interests. They are not there to do you any favours, so don't expect any. Be prepared to negotiate and don't feel pressured to accept the first settlement offer.

Document all communication with your insurance company

Documenting all communication with your insurance company is a crucial step in managing your insurance after a house fire. Here are some detailed tips to ensure a smooth and effective process:

• Keep a Record of Communication: Save all emails, letters, and other written correspondence with your insurance company. If you have phone calls or in-person meetings, take detailed notes on what was discussed and make sure to get confirmation in writing. This will help protect you in case there are any discrepancies or misunderstandings later on.
• Be Organised: Create separate folders, both physical and digital, to store all the relevant documents. This includes estimates, invoices, bills, permits, contracts, and any other paperwork related to your insurance claim. That way, you can easily access what you need when communicating with your insurance company.
• Confirm and Clarify: After any communication with your insurance company, send a follow-up email or letter confirming what was discussed and agreed upon. This ensures that everyone is on the same page and gives you a written record of the conversation.
• Ask for Clarification: If you don't understand something or need more information, don't hesitate to ask. It's important to fully comprehend your insurance policy, coverage, and any requirements or restrictions that may apply. Don't be afraid to ask questions and seek clarification.
• Be Timely: Respond to any requests or inquiries from your insurance company as soon as possible. The claims process can be time-sensitive, and delaying your response could slow down the process or impact your claim. Stay proactive and engaged throughout the entire process.
• Seek Assistance: If you feel overwhelmed or unsure about any aspect of the insurance process, don't hesitate to seek help. You can contact a public adjuster or an attorney who specialises in insurance claims. They can provide valuable guidance and ensure your rights are protected.

Remember, documenting all communication with your insurance company is a key part of managing your insurance after a house fire. It helps protect your interests, ensures a clear record of discussions and decisions, and can expedite the claims process.

Get an advance from your insurer to cover immediate costs

If your home is uninhabitable due to smoke and fire damage, you may need to incur additional living expenses (ALE). Talk to your insurance company about getting an advance for these costs. You can request that a representative bring a check to you wherever you're staying, be it a hotel or a friend's house. Remember to save the receipts for everything you buy.

Your homeowner's policy will cover the cost to replace basic necessities that you might have left behind while evacuating, such as a toothbrush or a work uniform. You don't have to file a claim and have it approved before making these purchases. Instead, ask your insurer for an advance against your eventual claim. Be reasonable with your purchases, as you will have to pay the difference if you go over the approved amount.

Check your policy to see what type of coverage you have for the items in your home. You might have only actual cash value coverage for personal items, which would be significantly less than what you would need for a quality rebuild. A good agent will alert you to this.

Secure your property to prevent further damage

Securing your property after a fire is crucial to prevent further damage and deter potential vandalism or theft. Here are some detailed steps to secure your property effectively:

Boarding Up and Covering:

• Board up burnt windows and doors to prevent unauthorised entry and protect against weather damage.
• Cover any roof openings or holes with tarps to protect the interior from water damage and deter intruders.
• If possible, cover damaged walls and roofing with plywood for added security.

Removing Valuables:

• If your home is no longer habitable, remove valuables such as money, credit cards, electronics, and items with sentimental value to a safe location, such as a friend's house or a storage unit.
• Consider a partial or complete move-out for larger items like furniture and appliances if the property is at high risk of burglary.

Ventilation and Security:

• Ensure proper ventilation by opening windows or using fans to reduce smoke and odour.
• Lock and secure your property when unoccupied, and be aware that alarms may malfunction if electricity or telephone services have been interrupted.
• Contact the police immediately if your property is looted or vandalised, as you will likely need a police report to file an insurance claim.

Professional Help:

• If you don't feel safe handling the job yourself, don't hesitate to seek professional help from fire damage restoration companies, who are typically available 24/7 for emergencies.
• They can assist with securing the property, salvaging belongings, and guiding you through the insurance process.

Remember, the costs associated with securing your property or evacuating it temporarily are often covered by homeowner or business insurance policies, so be sure to contact your insurance agent to verify this coverage.

File your insurance claim as soon as possible

After a house fire, it is important to file an insurance claim as soon as possible. Most insurance companies expect to receive prompt notification of any events that might give rise to an insurance claim.

You can file a claim by calling your insurance agent or sending an email. After that, you will be asked to submit a "proof of loss claim", in which you itemize your losses and list their value. If you delay, you might find yourself far down on the list when it comes time for the company to send an adjuster to inspect your property and deal with your claim.

Before filing a claim, make sure your property is safe and secure. Even small fires could have damaged gas lines, electrical wires, support beams, ceilings, and floors. Have fire officials inspect the damage to deem your house safe before entering. They will assess the damage, determine how the fire started, and estimate what needs to be repaired or replaced.

Once you are able to enter, take pictures of your home. Having your own pictures will help support your claim and streamline the process. It also shows what the fire damage looked like immediately after the fire, rather than waiting until the insurance adjuster can assess your property.

You should also document evidence of all losses to prevent your fire damage insurance claim from being denied. Complete a Proof of Loss form after property damage from a fire. This form is one of the most critical pieces of information during the fire insurance claim settlement procedure. Many policies require that you submit the form within 60 days of the loss. When completing the form, include claim estimates, inventories, and all other supporting documents. Then, verify the details on the form are correct and get your document notarized.

The sooner you file your insurance claim, the sooner you can receive an advance from the insurer against your costs of living. Your homeowners' policy will cover the cost to replace basic necessities, but you don't have to file a claim and have it approved before making these purchases. Instead, ask your insurer for an advance against your eventual claim. Save the receipts for everything you buy and be reasonable—only buy what you need.

Frequently asked questions