Fire and Flood Damage
What To Do After A Fire Or A Flood
First, there’s the threat to your and your family’s safety that can leave you feeling shaken afterward…
Then there’s the loss of valuable possessions that you know you’ll never be able to get back…
Then there’s the uncertainty of where you are going to go and what you are going to do next…
Well, to help you with that last part we have created this handy guide. On the following pages you will discover step by step what you need to do to recover from a house fire and move on with your life.
One thing that you need to keep in mind when it comes to filing an insurance claim for your damaged house is that you will be dealing with a large company — a company that has handled many cases like yours. They know exactly what they need to do to ensure the best result for their company.
Don’t forget that while your agent may express deep sympathy for your situation… he or she works for a company where the bottom line is really all that matters.
That means it’s up to you to become informed so that you can ensure that you and your family are justly compensated for the property damage and the pain and suffering you experienced.
Don’t just believe that your insurance company will do the right thing. Get the information you need to make sure that they do – reading this guide is an excellent first step.
So let’s get started.
Step 1: CALL YOUR INSURANCE AGENT & REPORT YOUR CLAIM
One requirement of all insurance policies is that the policyholder must promptly notify the company in the event of a fire so that its representatives can inspect all damaged property.
So as soon as possible after your fire, contact your insurance agent. When speaking with your agent either on the phone or in person you should also request a certified copy of your insurance policy.
Once you have that copy be sure to read the Conditions section, which can usually be found in the beginning of the policy. This section should contain a list of things you need to do in the event of a fire … be sure that you follow the list precisely.
One requirement of all insurance policies is that the policyholder must promptly notify the company in the event of a fire so that its representatives can inspect all damaged property.
So as soon as possible after your fire, contact your insurance agent. When speaking with your agent either on the phone or in person you should also request a certified copy of your insurance policy.
Once you have that copy be sure to read the Conditions section, which can usually be found in the beginning of the policy. This section should contain a list of things you need to do in the event of a fire … be sure that you follow the list precisely.
REPORTING A CLAIM IMMEDIATELY PROVIDES A NUMBER OF IMPORTANT BENEFITS:
- It fosters a sense of cooperation between you and your insurance agent (and the company he works for)
- It gets the process moving so that your claim can be paid out as quickly as possible
- It helps ensure the claims adjuster can evaluate your claim in a timely manner. Often times, claim adjusters may feel “under pressure” to evaluate a claim quickly so that the company can set its loss reserve and potential claim payout amounts
- It will help prevent the insurance company from arguing later that a delayed claim jeopardized their rights or led to a slow claims process
To aid you in reporting your claim most companies now have a toll-free number that allows you to speak to a live representative and make a claim at any time of day or night 24/7
Step 2: Secure Your Property
Yes, it is understandable after going through something as traumatic as a house fire that you may feel like you need to take some time to gather yourself and recuperate.
But, unfortunately, you do not have that luxury… not yet.
Right now, there are steps you need to take to ensure a good outcome to this horrible situation and the second step is to ensure your property is secure after a fire.
You don’t want someone wondering onto the site and getting hurt. You also don’t want scavengers stealing property that you may not be able to be reimbursed for due to you not securing the property in a timely manner.
HERE ARE SOME TIPS TO FOLLOW WHEN SECURING YOUR PROPERTY:
- Don’t try to turn off any utilities yourself. The fire department should make sure that all utilities (gas, water, electric) are safe and/or disconnected before they leave the scene.
- Notify local police that your home will be vacant to help prevent looting and break-ins.
- You may also need to hire a board-up/mitigation company to pump out water, board-up openings and otherwise ensure that your property does not suffer additional damage. Depending on the level of damage, you may be able to handle this yourself – you could cover a damages area with a tarp or board up an opening.
Step 3: Understand Your Insurance Policy
With your property secured, now it’s time to take a closer look at your policy and understand what protection you have.
Here are some important components of an insurance policy that you need to be familiar with:
Declarations Page — This is a one-page summary document that identifies the property being insured and the policy period. It also lists the amount of the insurance, deductibles, endorsements and the home owners’ names.
Insuring Agreement — This is a short, simple paragraph that explains that the property is covered by insurance if the premiums are paid and all policy provisions are complied with.
Damaged Items — This section details items covered by the policy. The key thing to keep in mind here is do NOT dispose of any damaged items until the claims adjuster has reviewed them and OK’d their removal. Getting rid of items before an inspection could result in you NOT being reimbursed for them.
Exclusions — This section sets forth a number of instances where property loss will not be covered under the policy. Examples may include intentional loss, flooding, governmental action or earth movement.
Coverages — This section describes the property covered and lists any limits or restrictions for certain classes or locations of property. Also, depending on the type of policy you purchased, this section may set forth that your property is covered on a “specified perils” or “all risk” basis. Peril refers to a direct cause of loss, such as a fire, a tornado, lightning, theft, vandalism, a wildfire, an explosion and more. Most policies only list what is excluded from coverage, such as flooding and earthquakes.
Definitions — Here you’ll find definitions for common policy terms, including “you,” “your” and “business.”
Now here are some specific insurance terms and concepts that you should be aware of when attempting to understand your homeowner’s insurance policy:
Debris Removal — In the aftermath of a house fire, the contractor will need to remove debris from the scene before they can start the necessary repairs. The cost of the removal is paid out of a policy’s “Additional Coverages” instead of being deducted from the policy limit.
Living Expenses — When the damage is so severe that you can no longer reside in your home, your policy will pay the extra costs you incur to live elsewhere if it includes Additional Living Expense (ALE) coverage, we’ll talk more about this later.
Coinsurance — This is an older term that may not even be in your current homeowner’s policy but if it is, it can be important. Coinsurance means that the policyholder must carry insurance that is at least 80 percent of a home’s replacement cost. If the coverage does not equal at least 80 percent of the value, the insurance company will pay less than the full amount of the claim.
Another Option - Sell Your Damaged House
Remember the Conditions section of your insurance policy that we mentioned earlier?
Well, within that section there may be list of the insured’s duties which may include submitting what is called a Proof of Loss.
If this is listed in your Conditions, you need to submit it promptly. Here are some things to keep in mind:
Not all adjusters require a proof of loss but if they do it is a very important document.
- Proof of Loss is a form but if you prefer you can submit a written notarized statement
- Be sure to include all claim documentation that a Proof of Loss is requiring be submitted
with it - Make sure you understand the time limit for Proof of Loss submission as set forth in your insurance policy.
- Missing the deadline could have catastrophic effects, including an outright loss of coverage
- If you are going to have trouble meeting the deadline, immediately ask for an extension in writing!
YOU COULD BE RID OF YOUR HOUSE IN JUST A WEEK (OR LESS)!
Owning a home that is in need of repairs can add a lot of stress to your life.
There are worries about how much the repairs will actually cost — will the insurance settlement cover them all?
Then there is the matter of how long the repairs will take. Are you prepared to live in temporary housing for 4, 5, 6 months or even a year or longer?
Then … added to all of that… there are the health concerns to think about (fire damaged homes often have toxic materials in them) and the fact that most buyers don’t want to purchase a home that was once damaged by fire.
The whole situation can make you want to pull your hair out!
But it doesn’t have to be that way for you – you can sell your home. That’s right, in this special case you don’t have to worry about finding a good buyer, a good buyer has found you!
The truth is you may be very surprised at just how valuable your property is! We specialize in uncovering the true potential of a variety of home types — including those damaged by fire.
You could then use the cash you receive from us along with your insurance settlement to finance your dream home!
SO DON’T LET YOUR HOME DRAIN YOUR SAVINGS… OR ADD UNWANTED STRESS TO YOUR LIFE!
Get Out from under the financial pressure of owning a fire-damaged home today!
One of the great things about selling to us is we are not real estate agents, we are real estate brokers. That means there are no fees, which in turn means more money goes into your pocket. We also pay cash.
Instead of shelling out more money for repairs, you could sell your fire-damaged house and get the money you need to purchase an even nicer home.
In fact, not only will we buy your house but we will also:
O Pay cash
O Close whenever you want
O Handle all the paperwork so it is super easy and convenient for you
To escape the stress you may be feeling about this home and to put a “nice chunk of change in your pocket” … sell your fire damaged house to us.
More Information
For more information on how we can help simplify the process, contact us.
