After A Fire: Questions For Your Insurer

Dealing with insurance after a house fire can be a stressful and confusing process. It's important to know what to ask your insurance company to ensure you get your due. Firstly, notify your insurance company or agent as soon as possible, as most insurers expect prompt notification. You can then request an advance against your insurance claim to cover basic necessities, as you may have been forced to relocate. It's also crucial to document all losses by taking photos of the damage and making a list of items that were destroyed or need repair, along with their purchase price and estimated replacement cost. Keep all receipts related to your expenses. When the insurance adjuster visits, ensure you are present to explain what happened and point out any hidden damage. Ask what additional information or documentation is required and confirm everything discussed in writing afterward. Remember to treat the adjuster with respect, even if you don't agree with them.

Ask about an advance on your insurance claim to cover basic necessities

If you've had to evacuate your home after a fire, you may have been forced to leave behind basic necessities, from toothbrushes to work uniforms. Your homeowners' insurance policy will cover the cost of replacing these items, but you don't need to file a claim and wait for it to be approved before you can buy what you need.

Instead, you can ask your insurer for an advance against your eventual claim. This will be paid against the "Personal Property or Contents Coverage" of your policy. You can ask for a representative to bring a cheque to you, wherever you're staying. Make sure you save the receipts for everything you buy and only buy what you need. For example, if you lost a pair of khakis and a blazer, don't buy Armani suits (you'll end up paying the difference).

Check your policy to see what type of coverage you have for personal items. You might have replacement coverage for the house itself but only actual cash value for your possessions. A good insurance agent will alert you to this.

Your policy may also provide reimbursement for living expenses if you have to relocate after a fire, so keep a careful record of all receipts, bills and expenses.

Document all losses and expenses

Documenting all losses and expenses is crucial when dealing with insurance after a house fire. Here are some detailed steps to ensure you have everything covered:

Create a Comprehensive List of Losses

Start by making a detailed list of all the personal property that was damaged or destroyed in the fire. Include as much information as possible for each item. This includes a description of the item, the quantity (if applicable), the manufacturer or brand, the age or purchase date, the purchase price, and the estimated replacement cost. If you don't have receipts for certain items, don't worry. The photos or videos you took of the damage may be sufficient proof of ownership. It is also a good idea to create an inventory of any personal items that were removed from the property by a fire damage restoration company for safe storage.

Calculate Additional Living Expenses

If you had to relocate due to the fire, make sure to document all your extra expenses. This includes things like hotel bills, restaurant meals, transportation costs, clothing, and other daily living expenses incurred while your home is uninhabitable. Keep all your receipts or use an electronic payment method to easily track these expenses. Your insurance policy may cover these additional living expenses, so it's important to keep a detailed record.

Get Repair and Restoration Estimates

Obtain multiple repair estimates from different contractors. Your insurance company may have preferred vendors, but you are not obligated to use them. By getting several estimates, you can make an informed decision and ensure you're not being overcharged. Remember to also document any emergency repairs made immediately after the fire to mitigate further damage.

Verify Coverage and Understand Your Policy

Take the time to carefully review your homeowner's insurance policy. Understand the extent of your coverage and what is included. Familiarize yourself with any exclusions or limits in your policy. Verify what specific types of damage are covered, such as fire, smoke, water, or chemical damage resulting from firefighting efforts. Know your rights and what you are entitled to claim.

Keep a Record of All Communication and Documentation

Finally, it is essential to keep a meticulous record of all communication and documentation related to your insurance claim. Save all emails, letters, and notes from phone calls. Document any discussions with your insurance agent or adjuster, including the dates and content of those conversations. Make copies of all documents you provide to the adjuster, such as your list of property losses and repair estimates. This ensures that you have a paper trail and can protect yourself in case of any disputes or disagreements during the claims process.

Verify the insurance adjuster's identity

After a house fire, you will need to file an insurance claim. Your insurer will appoint an insurance adjuster to assess the damage and determine how much the insurance company should pay. It is important to verify the identity of the insurance adjuster before letting them into your home. Ask the insurance company for the adjuster's name, and then ask the adjuster for identification when they arrive.

Insurance adjusters, also known as claims adjusters, investigate insurance claims to determine if the insurer should pay for damage or injuries, and if so, how much they should pay. They work for your insurance company and act in their best interests to mitigate their liability. Some insurance adjusters are 'independent' and work on a contract basis for multiple insurers. However, they are still paid by the insurance company and are contracted to investigate and adjust claims on their behalf.

When an insurance adjuster is assigned to your case, they will first review the details of the accident or loss you submitted with your claim, as well as your policy, to determine which coverages may apply. They will then collect recorded statements from those involved, such as witnesses, and review any relevant information, such as police reports or video footage. If the adjuster determines that the damage is covered, they will go over your options with you, which may include moving forward with repairs or getting an inspection to determine the cost of repairs.

It is important to remember that insurance adjusters are not there to do you any favours. They are not going to leave money on the table. However, you can take steps to protect yourself and ensure you get your due. In addition to verifying the adjuster's identity, document all losses and contact with the insurance company, and make copies of all documents you provide to the adjuster.

Discuss any exclusions or limits in your policy

After a house fire, it is important to discuss any exclusions or limits in your insurance policy. While most homeowners' insurance plans should pay for fire damage to a home, as well as item replacements or repairs, there are several common disasters and liabilities that are not covered.

Standard homeowners' insurance policies do not cover damage caused by flooding, earthquakes, termites, mould, or normal wear and tear. There may also be exclusions for damage caused by animals, including infestations of termites, bees, bats, or bed bugs. If you live in an area prone to natural disasters, check whether your policy covers events such as severe winds, falling items, smoke damage, and weather damage from hail, hurricanes, thunderstorms, and lightning.

In addition to these common exclusions, pay close attention to any limitations within your policy. A limitation may stop coverage for a certain period of time or put an upper cap on the value of your recovery. For example, your policy may have a coverage limit that restricts the amount you can claim for repairs or replacements.

If you are unsure about what is excluded or limited in your policy, contact your insurance company or agent for clarification. It is important to understand the specifics of your coverage to ensure you are adequately protected in the event of a house fire.

File your claim promptly

Your insurance policy requires you to report the loss "as soon as reasonably possible". The sooner you notify your insurance company, the sooner you will obtain your claim number. If you delay, you may find yourself at the bottom of a long list of claimants awaiting an inspection of their property.

You can obtain your claim number by calling your agent or your insurance company's claims department. You should also expect a visit from a drone, as this is an increasingly common way for insurers to inspect damage, particularly when it's widespread.

Once you have made contact, you will be asked to submit a "proof of loss claim", in which you itemise your losses and list their value. It is important to be organised and keep records of all communication with your insurance company, including calls, emails, and letters, as well as estimates, invoices, bills, permits, and contracts for repairs. Never part with an original document. If your insurance company wants to see an invoice or bid, send them a copy.

If your home is uninhabitable due to smoke and fire damage, talk to your insurance company about getting an advance for additional living expenses (ALE). This will help cover the cost of a hotel or meals at a restaurant, for example.

Before you file your claim, carefully consider the cost of the damage and the payout you'll receive, minus your deductible. If the amount you'll get is relatively small, it may not be worth filing a claim, as your premiums are likely to increase as a result.

Frequently asked questions