No-one ever thinks that something bad is going to happen to them, but everyone needs to be prepared for the worst. It is always best to make sure that you are adequately covered by insurance before a loss occurs. When your home is damaged by fire, it can be emotionally devastating. Recovering from a home fire can take a long time, especially if there is extensive damage to your home and personal property. So, what do you do after your home has been damaged in a fire?
- Seek medical care – Even if you feel confident that you were not hurt, it is best to be sure that you suffered no physical harm.
- Find a safe place to stay – If your home is damaged and unsafe to live in, you need to find somewhere to stay.
- Call your insurance agent – It’s very important that you contact your insurance agent as soon as possible. First, you need to let them know about the fire so that you can file an insurance claim. Second, did you know that homeowners are responsible for any loss that occurs after a fire? When you contact the insurance agency, they can advise you how to protect the property from further damage, such as vandalism, theft, and rain or snow. Third, you may need to obtain a copy of your insurance policy, and have the agent explain the coverage. Fourth, the insurance agent will be able to help you better understand the claim process, how long it will take, and what you can do to expedite the claim.
- Ask for a money advance – If you are unable to live in your home, and/or your personal possessions are ruined, you may be entitled to an advance on your fire damage claim. The money can be used to pay for new lodging, clothing, and other necessities.
- Proof of home and contents – Gather receipts, videos, and pictures (hopefully you kept them somewhere other than at home), of the house and contents to prove what you owned and how much those items cost. Although it isn’t necessary to have proof, it will make the claims process easier for you.
- Keep track of expenses – Keep track of all the expenses you incur. Homeowners don’t always understand what is covered in their homeowner’s policy. They often make the mistake of assuming things they paid for will not be reimbursed by the insurance company. Keep every receipt, and write on the receipt what it is for. If you temporarily live with someone after the fire, have them write you a receipt for rent. If you have to go out to eat, and it costs more than eating at home then save the receipt. You may be entitled to reimbursement for the additional cost of eating out. Keep every receipt!
- Take notes on all discussions – It is extremely important that every time you have a phone conversation, email, or discussion with the insurance agent or any representative of the insurance company, you keep track of all of the details. Take detailed notes during in-person or over-the-phone conversations, and keep copies of all written discussions. Your notes can make a big difference in how much the insurance company pays you, and minimize any discrepancies.
- Hold the insurance company accountable – By law, insurance companies must settle claims in a timely manner. But, they are notorious for unnecessarily dragging their heels. If you haven’t heard from them within 30 days (California) from filing the claim, contact your state insurance department. Then, send the insurance company a registered/certified letter saying that you have contacted the insurance department. Insurance companies are regulated by the insurance department in each state they do business in.
- Obtain your own repair/replacement estimates – Insurance companies have their own adjustors who provide estimates of damage and are notorious for trying to pay less than they should for claims. That is why it is so important for homeowners to hire experts to estimate the damage to their home and personal property.
- Pay “adjusted” homeowners insurance – Ask your insurance agent to modify the coverage on your policy to liability only. Why? You may not have a house, but you still have potential liability. What if someone goes onto your property and hurts themselves, or your dog bites someone? Also, ask that your temporary residence be listed on the policy in addition to your old residence.
- Pay your mortgage – Yes, you still owe the mortgage company for the home, even though the house may no-longer be there. Homeowner’s policies are designed to pay for the repair or replacements of homes destroyed by fire.
- Don’t be in a hurry to settle – If you don’t think that you are being paid enough for your damaged home and property, don’t accept the insurance company check. Sometimes insurance companies will rush the claims process in hope that a homeowner has forgotten to include some things in their claim. Homeowners are usually stressed after a fire has destroyed their home and its contents. They are often too busy and too upset to remember everything, and insurance companies count on that. Take your time, and don’t be in a big hurry to settle. It can cost you thousands of dollars.
When homeowners purchase insurance coverage, the last thing they expect is that the insurance company will try to pay them less than their fire damage claim is worth. But, sometimes insurance companies fail to act honorably and try to pay as little as possible. When that happens, many homeowners feel frustrated and don’t know where to turn for assistance. If you need help, the Smythe Law Firm is here for you. Our attorneys have extensive fire damage claims experience, and will work hard to settle your claim.