House Fire Damage - Where to begin

Whether you have suffered a large or small house fire, determining your next steps can be overwhelming. The goal of this blog is to offer a little guidance for those next steps.

Let's begin with a few positives: 

Your insurance company may pay to put your home back together and replace or clean your possessions.

Some items such as photos, paintings, rugs, and furniture can be saved so don't count them as completely lost just yet. Wait until a professional who specializes in cleaning and restoration completes an assessment. If the damage is claim-worthy, your insurance company may cover the cost to restore those possessions.   

Your insurance company may also pay for you to stay in a hotel or provide other accomodations if you are unable to live in your home right now. 

Many homeowners have never filed an insurance claim and have no idea what the process is. It's okay. You aren't expected to know the process. I'm writing this with you in mind though. The following information will help you make more informed decisions during this crucial time. You've got this! You can absolutely rise to the occassion. You just need a little guidance so please read on.

The fire department has come and gone.

You have water, fire, and smoke damage to your home along with many or all of your possessions.

Will insurance cover this? What happens to your possessions? Who do you need to call so you can begin putting your home back together? 

To File a Claim or Not to File a Claim:

Call your local insurance company and/or a contractor who specializes in claim-related repairs as we do. Ask your local agency for your deductible amount or locate that amount on your homeowner policy declarations page. Have a contractor or two complete an assessment of the damage and give you an estimated cost for all repairs. Your goal is to compare the estimated amount of repairs to your policy deductible amount. 

Let's clarify who's who before we move forward with whether or not you should file a claim.    

• Insurance company: Provides the product (your policy and coverage) and
  also determines whether or not the damage to your home is covered by your policy. They work hand-in-hand with the adjuster assigned to your claim.
  Examples: State Farm, Allstate, Farm Bureau, Progressive, Chubb, State Auto, Farmers, ...
• Local insurance agency: sells and services your policy (call them to help you determine if a claim should be filed)
  Examples: Clay and Land Insurance, State Farm - Michael Wiseman, Hollis and Burns Insurance, Farm Bureau - Brent Colbert, Farm Bureau - Damon Juckett, Kellon Insurance, Allstate - Rod Lovelace, Thompson Insurance, ...
• Adjuster: Adjusters help the company determine if rour damage is covered by your policy. Some are independent and some work directly for the insurance company. Field adjusters come to your home to complete an inspection. Desk adjusters work from an office within the company. Field adjusters inspect the damage and report all findings to the appropriate department within the company. You may have only one adjuster or you may work with a field and desk adjuster. It depends on the company.

It may not be in your best interest to file a claim.

I worked in the insurance industry for several years before accepting a position with a local contractor. During that time, I noticed that when a company was deciding whether or not to approve an applicant for a homeowner policy, they reviewed the claim details associated with that homeowner's current and previous policies. If the homeowner submitted a claim but nothing was paid out, that detail was still reviewed and taken into account during decision making. Claim information is also taken into account when your policy is up for renewal. Insurance companies generally have a claim limit and if you surpass that limit, the company may choose not to renew your policy. In my experience, even though homeowners are told that if a claim is not paid out it doesn't count, it absolutely does count. It is in your best interest to only call the company claims department if you are fairly certain that the damage will be covered and the cost of repairs is well over your policy deductible. Remember, your local insurance agent/agency and a contractor can help you make this decision. Click here for information regarding deductibles.  

If you decide to file a claim: 

Click here for a printable list of information you should be gathering during the initial claims process.

Some agencies are allowed to be more involved with the claims process than others. Some are able to file the claim for you but others are not. Some are able to offer you referrals and others are not. Some can see your claim progress in their company system and others cannot. Ask your contact within your local agency how their office handles claims. This way, you know on the front-end how involved they can be. 

Agents who must refer you directly to their company claims department:
Some insurance companies require the agent and staff to refer you directly to their company claims department without providing any additional support. In this case, I'd like to suggest that you first call a contractor who regularly handles insurance jobs. Have the contractor (or multiple contractors) come out to assess your damage. They should give you an idea of what the estimated damage repair will cost. Compare that amount with the deductible amount listed on your policy. If the repairs will likely cost right at or below your deductible amount, it's not a good idea to call the claims department. They won't be much help anyway. If the repairs are well above your deductible, I suggest you go ahead and file the claim.  

Prepare yourself:

Organization, documentation, and having one location for everything related to your claim will be extremely helpful. Begin this now. Grab yourself a binder, tab dividers, business card binder pages, loose leaf paper, and a 3-hole punch. If you don't do this now, you will wish you had.

There will likely be many people with a couple different companies working together to get you back to pre-loss condition. Along with your adjuster, you may be working with a mitigation company, a contractor, subcontractors, your water and electric company, the fire department, an inspector, and so on. It gets confusing quickly.

Suggestions:

- Take business cards from everyone. Store them in your binder and save contact information in your cellphone.

- When someone promises you something or explains any next steps, write a quick note in your binder including their name and the date. There will be so much information thrown at you. There is no harm in asking for people to slow down so you can take notes. 

- When someone takes any of your possessions for cleaning or restoration, write it down immediately. I have seen it time and time again. Different companies perform different tasks and homeowners end up wanting or needing a specific item but can't remember who has that item. One company may inspect, clean, or restore only electronics while another will only take your textiles. Your oriental rug may be taken by a different company than your other rugs. This is normal but can get frustrating and confusing. Do yourself a favor and keep a list of which company is taking which of your items. 

- Start yourself a checklist of things you are asked to provide or decisions you must make, who you need to relay that information to, and when the due date is. Check off each task upon completion. Include the date you relayed that information and to whom you sent it. The last thing you want is to hold up progress but you will be bombarded with questions and you won't be able to provide definite answers to every question just after being asked. Take notes and review your list periodically. 

Begin this process with organization and documentation. Continue that until project completion. This will help you avoid unnecessary frustration and anxiety. 

Consider beginning the process: 

- Board up your home to keep looters out. Your contractor should be able to assist with this.

- Your electricity was likely shut off so you should address this as quickly as possible. Ask your electrician to call code enforcement for a fire ruling. If you don't have an electrician you prefer to use, ask your contractor. Anyone working in your home will need light, at the very least and the process of having your electricity turned back on will take a little time. You can also ask for a generator if needed. Some companies have them available and your insurance company may cover that expense as well.

- Call a mitigation company to begin the process of drying out your home. Water was used to put out the fire. Depending on the severity of the fire and the amount water used to put out the fire, you may need to have your home or parts of your home dried out. 

- Catalog your possessions. Do not throw out damaged possessions until your adjuster gives you the go-ahead. Ask your adjuster what specific information is needed on the list of your possessions. If you hire a mitigation company, they may be able to assist with this. Many mitigation companies use a system specifically for this purpose that they submit to adjusters. They should take a photo of each item and included required information along with that photo.

- Remove all firearms and valuables, such as jewelry, from your home. It is better to be safe than sorry. Additionally, mitigation and construction companies shouldn't be handling those items anyway. Document them and move them to a secure location. 

- Medications and food may not be safe for consumption even if they weren't burnt up in the fire. The heat alone may have compromised them. Ask if those items may have been affected. Again, lean on the side of caution and safety. 

- Keep receipts for everything you purchase as a result of this loss. Turn them in to your adjuster and ask if that expense is covered. 

That's all for now. It may be overwhelming but just take it one day at a time. You will get through this! You will learn and you will be presented with opportunities to grow. Choose growth and be stubbornly determined. Do the best you can with what you have right now and be proud of yourself for it. - Amber

This blog absolutely doesn't cover every aspect of this topic but I believe it can be a good start. Hope all goes well for you! Don't hesitate to give me a call if I can be of any assistance. Amber (901) 864-1155

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