Jeffrey Wade
Hurricane Florence caused billions of dollars in insured losses, with most claims filed under the National Flood Insurance Program (NFIP). Homeowners with insurance faced challenges in negotiating the insurance process to ensure their reconstruction costs were covered. It is important for homeowners to understand their insurance policies, including any restrictions and deductibles, and to document any damage through pictures and videos. Insurance companies should be contacted as soon as possible to report the damage and initiate the claim process.
| Characteristics | Values |
|---|---|
| What to do before a hurricane | Take pictures and videos of your house, belongings and their condition. |
| What to do after a hurricane | Document all damage with pictures and videos, make temporary repairs if safe to do so, contact your insurance company and initiate the claim process. |
| What to do during the claim process | Understand your insurance policy, be vigilant with your insurance company, be aware of scammers and low-ball offers, and keep records of all communication with the insurance company. |
| Insurance policy specifics | Most homeowner insurance policies have "loss of use" clauses that take effect when a home is rendered uninhabitable, and they typically cover wind damage. However, flooding is covered under a distinct type of flood policy. |
| Deductibles | There is a deductible for hurricane damage that must be paid before insurance payments kick in. The deductible is a predetermined amount based on a percentage of your insured value, not the damage caused. |
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What You'll Learn
Document damage with photos and videos
Documenting damage with photos and videos is crucial when filing a homeowner's insurance claim after a hurricane. This documentation provides valuable evidence of the extent and nature of the damage, which can greatly assist in supporting your claim. Here are some detailed instructions and considerations to keep in mind:
- Before the hurricane arrives, take photos and videos of your entire house, including all rooms, ceilings, floors, and walls. Capture valuable belongings and items, and pay attention to areas that are less frequently used, such as the attic. This establishes a baseline condition of your property before any hurricane-inflicted damage occurs.
- After the hurricane, conduct a thorough sweep of your property to identify and document all damage. Take photos and videos from multiple angles, ensuring you capture the extent and specifics of the damage. Pay attention to water leaks, as they may not be immediately apparent and can cause issues later on.
- Back up your photos and videos online if possible. This ensures that you have a secure copy of your evidence, which can be easily accessed and shared with your insurance company.
- Understand what type of damage is covered by your insurance policy. Standard homeowner's insurance typically covers wind damage, but flooding damage usually requires a separate flood insurance policy. Knowing what is covered will help you focus your documentation efforts on the relevant areas.
- Start the claims process as soon as possible. Insurance companies can be inundated with claims after a hurricane, so filing promptly increases the likelihood of your claim being addressed and settled faster.
- Keep in mind that photos are generally preferred over videos for documentation purposes. Photos are easier to sort, catalog, and review, making it simpler for both you and the insurance company to assess the damage.
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Understand your insurance policy
Understanding your insurance policy is key to knowing what is and isn't covered, as well as what your responsibilities are. Here are some tips to help you understand your insurance policy after Hurricane Florence:
- Read your policy thoroughly: Take the time to read through your entire insurance policy document. Familiarize yourself with the terms, conditions, and fine print. Pay close attention to the coverage inclusions and exclusions, as well as any deductibles or limitations that may apply.
- Understand coverage specifics: Standard homeowners' insurance policies typically cover wind damage caused by hurricanes. However, it is important to note that flooding is generally excluded from homeowners' insurance and requires separate flood insurance coverage. Understand the specifics of your policy, including any applicable deductibles, such as hurricane deductibles, which are common in states like Florida.
- Review your policy with an agent: Insurance policies can be complex, so consider scheduling a review session with your insurance agent or company representative. They can explain the intricacies of your policy, clarify coverage details, and answer any questions you may have. This can help you better understand your entitlements and responsibilities.
- Document and take inventory: Before and after a hurricane, thoroughly document your property and belongings. Take photos and videos from different angles, capturing the condition of your home, including areas like the attic. Create an inventory of your possessions, their value, and their condition. This documentation will be crucial when filing a claim and can help expedite the process.
- Understand the claims process: Familiarize yourself with the steps involved in filing a claim. Know how to initiate the process, the required documentation, and the timelines for submitting a claim. Understand your rights and what to expect from the insurance company. Be vigilant and proactive in dealing with your insurance provider to ensure a full and fair settlement.
- Be aware of restrictions and limitations: Some policies may have restrictions on replacement cost payments, especially if your home is completely destroyed. Understand any caps or limitations on payout amounts, as they may impact your ability to rebuild or repair your home fully.
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Be aware of deductible amounts
Understanding your insurance policy is crucial when dealing with the aftermath of a hurricane like Florence. Homeowners' insurance policies typically cover wind and general damage from hurricanes, but it is important to note that flooding is usually covered under a separate flood policy. Understanding your policy will help you know what is and isn't covered and how much your deductible is.
A deductible is a predetermined amount that a policyholder must pay out of pocket before the insurance company starts covering the remaining costs of a claim. In the context of hurricane deductibles, this amount is typically a percentage of your insured value, ranging from 1% to 5% or even higher, depending on your insurance contract. For example, if your home is insured for $200,000 and you have a 2% hurricane deductible, you will pay $4,000 even if the damage is only $10,000.
It is important to be aware of the specific details of your hurricane deductible. In Florida, for instance, insurance companies must offer hurricane deductible options of $500, 2%, 5%, or 10% of the policy dwelling or structure limits. Additionally, when a hurricane deductible is applied, no other deductible under the policy may be applied. This means that if you have a hurricane deductible, it takes precedence over any other deductible in your policy.
Understanding your deductible amount and how it applies to your claim is essential for managing your expectations and ensuring a smooth claims process. It is also worth noting that policyholders can often lower their insurance premiums by agreeing to a higher deductible. By understanding your deductible and policy coverage, you can better navigate the insurance process and ensure your rights are protected.
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File a claim as soon as possible
Filing a claim as soon as possible is crucial to ensure prompt attention and settlement. Here are some reasons why you should initiate your insurance claim without delay:
Avoid delays
Insurance companies can become inundated with claims after a hurricane, so filing promptly increases the likelihood of your claim being addressed and settled swiftly. Hanlon, an insurance expert, advises, "You don't want to be the person who six months later sends out a claim." Mark Friedlander, the communications director at the Insurance Information Institute, echoes this sentiment, urging policyholders to at least initiate the process as soon as possible, even if they don't have all the necessary information yet.
Understand your policy
Before filing a claim, it is essential to review your insurance policy thoroughly. Understand what type of damage is covered and what is excluded. Homeowner's insurance typically covers wind and general hurricane damage, but flooding usually requires separate flood insurance. Familiarize yourself with any deductibles, exclusions, and limits outlined in your policy. Knowing your rights and what to expect from the insurance company is crucial.
Document the damage
Before and after a hurricane, take extensive photos and videos of your property, including areas that may not be frequently used, such as the attic. This documentation will help support your claim and expedite the process. Daniel Odess, a public adjuster, recommends taking "hundreds of photos" from various angles to capture the condition of your belongings and property. Additionally, keep records of all communication with the insurance company and retain receipts for any repairs or temporary lodging expenses incurred.
Prevent further damage
If it is safe to do so, make temporary repairs to prevent further damage to your property. Some insurers may provide immediate financial assistance for interim expenses, allowing you to secure temporary shelter or other necessary services. Shannon Martin, an insurance expert at Bankrate, suggests asking the insurance company to expedite this portion of the claim payment to help cover these immediate needs.
Be vigilant
Finally, it is important to be vigilant and proactive in dealing with your insurance company. Insurance companies may attempt to limit payouts or introduce new restrictions after a hurricane. Understand your policy thoroughly and be prepared to question any denial or low settlement offers. If necessary, consult an attorney to ensure you receive a full and fair settlement.
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Be vigilant with insurance companies
Homeowners should be vigilant with their insurance companies after a hurricane to ensure they receive a full and fair settlement. It is important to understand your insurance policy and what is and isn't covered. Homeowner insurance policies typically cover wind and general damage from hurricanes, but flooding is covered under a distinct type of flood policy. It is also important to note that there is usually a deductible for hurricane damage, which you must pay before insurance payments kick in. This is a predetermined amount that a policyholder must pay out of pocket.
Before filing a claim, it is important to document the damage. Take photos and videos of all property damage, and do a thorough sweep of your house, visiting parts that might not be heavily trafficked, like the attic. It is also a good idea to take pictures of your belongings and their condition before a hurricane, so you can prove their prior condition. Once you have taken pictures of the damage, make temporary repairs if it is safe to do so.
When filing a claim, report the damage as promptly as possible, as insurance companies can get swamped with claims, and you want yours to be addressed and paid out quickly. Even if you don't have all the information yet, just get the process started. If your claim is denied or you feel the offer is too low, demand that the company identify the language in your homeowners' policy that served as the basis for their decision. If you feel you have been misled, consult an attorney.
It is also important to be alert to scammers and low-ball offers. If it sounds too good to be true, it probably is. When it comes to hiring a contractor to repair your property, do your homework and find a reputable one.
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Frequently asked questions
Document the damage by taking photos and videos of your property before and after the hurricane. You should also review your insurance policy to understand what is and isn't covered, and what your responsibilities are.
Report the damage and initiate the claim process as soon as possible. Contact your insurance company and ask them to expedite the portion of the claim payment so you can secure temporary shelter.
Demand that the company identify the language in your homeowner's policy that served as the basis for denying your claim or offering a low amount. Consult an attorney if you feel you have been misled.
A hurricane deductible is a predetermined amount that a policyholder must pay out-of-pocket before insurance payments kick in. In Florida, insurance companies must offer hurricane deductible options of $500, 2%, 5%, or 10% of the policy dwelling or structure limits.
