Aftermath Of A House Fire: Insurance Claims

After a house fire, you will need to file an insurance claim. The process of dealing with an insurance adjuster can be overwhelming, especially during a stressful time. Here are some things to expect:

1. Get in touch with your insurer: Contact your insurance company or agent as soon as possible to start the claims process and address your immediate needs.

2. Find a safe place to stay: Depending on the damage, you may not be able to stay in your home. If you can't stay with friends or family, organisations like the American Red Cross or Salvation Army can help you find temporary accommodation.

3. Receive an advance for additional living expenses: If your home is uninhabitable, your insurance company may provide an advance for Loss of Use to cover living and other daily expenses. Keep all receipts for purchases made with this advance.

4. Document the damage: Take photos or videos of the damage to your home and personal property. Get permission from the fire department before doing so.

5. Secure your property: Your insurer expects you to mitigate further damage and secure your property. Hire a fire damage restoration company to make emergency repairs and store any personal property that needs to be removed.

6. Understand your policy: Familiarise yourself with your homeowner's insurance policy to know what is covered and what your responsibilities are.

7. Document your losses: Create a detailed list of all personal property that was damaged or destroyed, including descriptions, purchase dates and prices, and estimated replacement costs.

8. Get repair estimates: You are not obliged to use vendors recommended by your insurance company. Get multiple repair estimates before hiring a contractor.

9. Meet with the insurance adjuster: When the insurance adjuster visits your property, show them all the damage and explain what steps you've taken to mitigate it.

10. Communicate in writing: Confirm all discussions with the insurance adjuster in writing, including any additional information or documentation requests.

11. Review the settlement offer: Don't feel pressured to accept the first offer. Negotiate with the adjuster if you believe the compensation is too low.

12. Consider a public adjuster: Managing a house fire insurance claim can be challenging. A public adjuster is an independent professional who can assist you in getting the best possible settlement offer.

Documenting losses and damage

• Take Photos and Videos: When it is safe, thoroughly document the damage by taking photos or videos of your property. Capture the damage to the structure of your home, as well as any personal belongings that have been affected. Get permission from the fire department before entering the premises.
• Create a Home Inventory List: Make a detailed list of all personal property that was damaged or destroyed. Include a description of each item, the date and place of purchase, the original price, and the estimated replacement cost. If you don't have receipts or can't remember the details, the photos or videos you took after the fire can serve as proof of ownership.
• Keep Receipts: Save all receipts for any expenses incurred due to the fire. This includes living and daily expenses if you had to evacuate and stay elsewhere. Your insurance policy may cover these additional living expenses (ALE).
• Get Repair Estimates: Obtain multiple repair estimates before hiring a contractor. Insurance companies often have preferred vendors, but you are not obligated to use them.
• Document Uninhabitable Conditions: If your home is uninhabitable due to fire and smoke damage, document this as well. Take photos or videos showing why it is unsafe to stay in your home.
• Record Emergency Repairs: If you hire a fire damage restoration company to make emergency repairs, be sure to document these actions. Take photos or videos of any personal property they remove for storage and get permission before they start work.
• Don't Throw Away Damaged Items: Keep all ruined possessions until after the insurance adjuster has inspected them. Throwing away damaged items too soon may affect your claim.
• Keep a Comprehensive Record: Maintain a detailed record of all communication, documents, and receipts related to the fire and insurance claim. Use folders or binders to stay organized.
• Contact Your Insurance Agent Promptly: Notify your insurance company or agent as soon as possible. Most insurers expect prompt notification of events that may lead to an insurance claim.

Getting an advance from the insurer

If you've had to evacuate your home, you may not have had the chance to grab basic necessities, from toiletries to clothing. Your homeowners' 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 buying what you need. Instead, ask your insurer for an advance against your eventual claim. They may be able to send a representative to wherever you're staying – whether that's a hotel or a friend's house – with a cheque. Make sure you keep the receipts for everything you buy and only buy what's reasonable. For example, if you lost a pair of khakis and a blazer, don't go buying Armani suits (you'll end up paying the difference).

Check your policy. You may have "replacement" coverage for your house, but only "actual cash value" for your personal items. A good insurance agent will let you know this.

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). Your policy will include a "loss of use" clause, which entitles you to reimbursement for living expenses while you're unable to live at home. You're entitled to additional living expenses – that is, the difference between what it costs you to live on a daily basis at home and what it costs while you're displaced. For example, if you spent $300 a week on groceries but are now spending $450 per week eating in restaurants, you can claim $150. When it comes to accommodation costs, you can probably claim the full amount. Even though you can't live at home, you still have to pay your mortgage, taxes, and insurance, so it would be unfair for you to cover the full cost of a hotel.

If you're staying with friends or family, your insurance company may be able to reimburse them for the cost of putting you up. Ask your hosts to itemize the value of the room and services they're providing, and be prepared to negotiate with your insurance company. It may help to point out how much more they would have had to pay if you'd stayed in a hotel.

Securing your property

• Contact your insurance company or agent as soon as possible. They will guide you through the process and provide assistance in securing your property. Your agent may also issue an advance for "Loss of Use" to cover living and other daily expenses while you cannot stay in your home.
• Mitigate damage and secure your property by taking necessary steps such as covering damaged parts of your home with plastic tarps or plywood. This will help to prevent further damage from weather or other elements.
• If possible, hire a fire damage restoration company to make emergency repairs. They are typically available 24/7 and will help secure your property. Ensure you document the damage with photos or videos before they remove any personal property for storage.
• Prevent vandalism and unlawful entry by boarding up any open and accessible parts of your property. Consider erecting a portable chain-link fence to keep people away, especially if your home is uninhabitable or vacant.
• Be vigilant and keep a close eye on your property. Regularly check for new problems or signs of disturbance, especially if your home is unoccupied.
• Protect your home from weather damage and unlawful entry. Even if your home is damaged, you typically have a responsibility as the owner to secure it from further risk.

Remember to document all the steps you take to secure your property. Take photos and videos of the damage and any repairs or mitigation efforts. Keep all receipts and records of your expenses, as these may be reimbursable under your insurance policy.

Filing an insurance claim

Notify Your Insurer:

Contact your insurance company or agent as soon as possible. Most insurers expect prompt notification of any incidents that may result in a claim. Provide them with basic information about the fire and any relevant details.

Understand Your Policy:

Familiarize yourself with your homeowner's insurance policy. Know the type of coverage you have, such as "replacement cost" or "actual cash value" coverage, as this will impact the amount you are paid. Understanding your policy will enable you to have more constructive conversations with the insurance adjuster.

Document the Damage:

Take photos or videos of the damage. Capture the damage to the structure of your home and your personal belongings. Get permission from the fire department before entering the property. Document the damage before making any temporary repairs or removing any items.

Secure Your Property:

Take reasonable steps to secure your property and prevent further damage. This may include covering damaged areas with tarps or boarding up open access points to prevent vandalism. Your insurance company will expect you to mitigate damage and will reimburse you for these initial repair costs.

Create a Detailed Inventory:

Start documenting your losses by creating a home inventory list. List all personal property that was damaged or destroyed, including a description of each item, the purchase date and price, and the estimated replacement cost. If you don't have receipts, the photos or videos you took may serve as proof of ownership.

Contact a Public Adjuster:

Consider hiring a public adjuster, especially if your claim is large and complex. A public adjuster works independently and will negotiate with the insurance company on your behalf to help you get a fair settlement offer. They typically charge a percentage of the insurance payout or a flat fee, depending on your state's regulations.

Meet with the Insurance Adjuster:

When the insurance adjuster visits your property, be present to explain what happened and walk them through the damage. Point out any hidden damage that may not be visible at first glance. Provide them with the documentation and inventory list you have prepared. Be honest and polite throughout the process.

Review the Settlement Offer:

After the adjuster assesses the damage, they will provide an estimate of the repair or rebuilding costs. If you believe the offer is too low or doesn't cover all the damages, don't hesitate to negotiate. Ask the adjuster to explain their reasoning, and provide your own estimates if you have them.

Document All Communication:

Keep a record of all communication with the insurance company and the adjuster. Send follow-up emails to confirm discussions and requests. Document any missed appointments, unreturned phone calls, and the details of your conversations. This documentation will be valuable if there are any disagreements or if the matter needs to be resolved in court.

Address Additional Living Expenses:

If you had to evacuate your home and incur additional living expenses, keep track of these costs. Your insurance policy may include a "loss of use" clause, which entitles you to reimbursement for living expenses while you're unable to live in your home. Save all receipts and provide them to your insurance company.

Remember to stay organized throughout the insurance claim process and don't be afraid to ask for clarification or negotiate if you feel the offer doesn't adequately cover your losses.

Keeping records of repairs and notes

Create a Comprehensive Record-Keeping System:

Use a binder or folder to organize all your documents related to the fire and its aftermath. This includes receipts, estimates, invoices, permits, contracts, and any other relevant paperwork. Keep digital files as well, including emails, photos, and videos. Separate folders for different types of documents can be helpful.

Document All Losses:

Start by creating a detailed inventory list of all personal property that was damaged or destroyed in the fire. Describe each item, including its condition, when and where you bought it, and the original purchase price. If you have receipts, gather them to support your claims. Take photos or videos of the damage to provide visual evidence. Don't forget to document any hidden damage, as it may not be visible to the adjuster at first glance.

Get Repair Estimates:

Obtain multiple repair estimates from different contractors. Insurance companies often have preferred vendors, but you are not obligated to use them. Getting several estimates will help you make an informed decision and ensure you don't overspend.

Keep Track of Repairs:

As you begin the repair or restoration process, keep a record of all work done. Note the dates, the scope of work, and the cost of each repair. Keep all receipts and invoices, and make sure to get permission or approval from your insurance adjuster before starting any significant repairs. Remember to document any temporary repairs made immediately after the fire to prevent further damage.

Communicate Regularly:

Stay in close communication with your insurance company and adjuster. Keep notes on all conversations, including dates, topics discussed, and any important details. If possible, confirm discussions in writing, such as through email, to create a paper trail. This will help you reference important information and protect your interests if any disagreements arise.

Understand Your Policy:

Review your homeowner's insurance policy thoroughly. Understand the coverage you have, whether it's "replacement cost" or "actual cash value." This will impact the amount you're reimbursed for repairs and replacements. Familiarize yourself with any exclusions or limits in your policy, so you know what is and isn't covered.

Seek Outside Help:

Consider hiring a public adjuster or consulting an attorney, especially if you have a large or complex claim. A public adjuster works on your behalf and can help you navigate the claims process and ensure you receive a fair settlement. Alternatively, an attorney specializing in insurance law can provide guidance and represent your interests if disputes arise.

Remember, keeping detailed records and notes is crucial for ensuring a smooth insurance claim process and getting the compensation you deserve. Stay organized, communicate effectively, and don't hesitate to seek professional assistance if needed.

Frequently asked questions