How to File a Homeowners Insurance Claim After a Storm
Follow these tips to make sure you get your due
A man stops in front of his house as a creek overflows from flooding following Hurricane Ian in Kissimmee, Florida.
By Tobie Stanger
Once you’re out of harm’s way following a big storm, the hard work of restoring your home—and your life—begins. And the sooner you reach out to those who can offer assistance, the sooner relief will come your way.
Contact Your Insurer
Your first move: Reach out to your homeowners insurance agent. Your policy requires you to make a claim in a timely manner, and that starts with contacting the insurer. But that contact can also help you get financial help right away, beyond the assistance offered by non-governmental agencies, your state, or the federal government.
Many displaced victims of Hurricane Ian, for instance, could get money from their homeowners insurance companies immediately—without the usual paperwork—to help with the cost of living elsewhere. That coverage, standard in most homeowners’ and renters’ policies, is called additional living expenses (ALE) insurance. After recent major disasters, most homeowners insurance companies haven’t been requiring documentation of home damage before sending initial checks to policyholders, says Michael Barry, a spokesperson for the Insurance Information Institute, a New York-based industry group.
"Some insurers may ask for proof that a home is not inhabitable, but they are in the minority based on what I have seen," Barry says.
You will eventually have to document the damage, but in the interim, ALE can help you cover costs like temporary housing, restaurant meals, laundry, extra commuting expenses, and pet boarding. It can also help with expenses when you’re dislocated due to mandatory evacuation orders—even if your own home is accessible and fine to live in.
Aside from ALE, you’ll typically need to document your property damage to initiate a visit from an adjuster (the professional who assesses the costs of repairing, restoring or rebuilding). If you can’t access your property, it might be worth contacting your insurer to see whether it’s using drones to conduct initial damage assessments. That could help expedite the process.
Do the Stopgap Work
The insurer can advise you about what repairs you should make right away to make your home habitable or to prevent further damage.
For example, if you need a plumber to close off water lines, check your state’s licensing board to find one who’s licensed.
Regardless of where the plumber is from, check the Better Business Bureau from that region for complaints and other information. You also may find testimonials on local review sites for consumer services.
Even if the insurer sends you a check right away for that emergency work, you may have to pay the bill yourself first. Either way, keep receipts that you can later file with your claim.
Get Your Coverage Details
When you contact your agent or insurance company, find out what’s covered in your policy. You can also probably find it on your account page on the insurer’s website.
A standard homeowners insurance policy covers damage to the home’s structure as well as personal property, minus a deductible. The amount you’re paid will depend on the kind of coverage you have. Though “replacement cost” coverage should cover the cost of repairing or replacing your home and any lost or damaged items, “actual cash value” coverage will pay you the value of your home and the damaged items inside, less depreciation.
Claim Small Water-Related Losses
Usually, CR advises avoiding filing claims for losses that appear to be less costly than the value of the deductible. That’s because if you later file other claims, the insurer could decide you’re reporting too many incidents and raise your premium—or refuse to renew your policy.
But there may be exceptions after some storms. With water damage, small spots on a wall or ceiling could reflect a bigger mess behind the gypsum wallboard or plasterboard, says Amber Mostyn, a Houston attorney who represents consumers dealing with insurers. “Reporting it now shows you’ve reported in a timely manner,” she says. “And if you find something later, it could very well add up to above the deductible.”
Prepare for the Adjuster
The insurance company will assign an adjuster, who will assess the damage and submit an estimate for review. Since the beginning of the pandemic, adjusters have increasingly been doing their work remotely—communicating through smartphone tools like FaceTime, Google Meet, and Skype—and accepting videos and photos directly from policyholders’ phones.
During the appointment, the adjuster may ask you to walk from room to room taking video with your phone, describing the damage and showing it in context and scale by zooming in and out.
But if you’re not comfortable dealing virtually—or the damage appears to be considerable and severe—you can ask the insurer to have an adjuster come to your home.
If that’s the case, ask the insurance company for the adjuster’s name before your appointment, then ask for identification before letting the person into your home.
Regardless of whether your adjuster’s visit is conducted virtually or in person, it helps to make a list of items that were destroyed or are in need of repair. Include the amount you paid for them and gather any receipts you can find.
You can report more damage you discover after the adjuster’s appointment. Depending on the policy, a claim can stay open—and you can receive additional compensation—for many months after the initial report.
Document All Your Transactions
After the adjuster’s appointment, remain in contact by email or text so that you have backup of all your communication. Keep notes about missed appointments, unreturned phone calls, what you discussed, and even whether the adjuster was rude. Though you probably won’t need this information, it will be useful if any disagreements have to be resolved in court.
Make copies of all documents, including everything you give to the adjuster, such as your list of property lost or damaged. If the adjuster advises you to get repairs, get that permission in writing.
In an emergency situation, the first adjuster may be replaced by a new one during the claims process, so having correspondence in writing could be helpful to you.
Discuss Exclusions or Limits in Your Policy
After the appointment, the adjuster or a company representative may give you a better idea of what the insurer intends to pay for the entire claim. If your insurer maintains that your policy doesn’t cover all the damages or if you think the compensation is too low, ask the carrier’s rep to explain in writing how he or she got to the estimate. The rep should also include any reason certain items aren’t covered and whether there are any coverage limits.
If you have custom work in your house, an adjuster may not know how to properly estimate the value. Get an outside estimate from a contractor.
If you think the wording in the policy is misleading, contact a local plaintiff’s attorney who specializes in insurance law. The Consumer Federation of America notes that courts have consistently ruled in favor of policyholders on policy ambiguities. File a complaint with your state’s department of insurance.
Consider Hiring a Public Adjuster
If you have a very large claim, you may want to turn to a public adjuster, someone who works on your behalf and represents you during the process. But be aware of fees. In some states a public adjuster’s fees are capped, typically at 10 percent to 12 percent of the insurance payout. In other states there are no percentage caps, or adjusters charge an hourly or flat fee.
In Florida, public adjusters can charge up to 20 percent—but only in areas that haven’t been declared federal disaster areas. "Any claims in Florida related to Hurricane Ian will be capped at 10 percent," says Brian Goodman, general counsel of the National Association of Public Insurance Adjusters (NAPIA).
You can check NAPIA’s website to find a public adjuster. Ask any candidate for references from past clients and look to see whether he or she has several years of experience and a state license where required.
There are four states where no licensing is in place: Alabama, Alaska, Arkansas and South Dakota. "In those four states, it makes sense to consult with a lawyer who works with catastrophe victims to put you in touch with a reputable public adjuster," Goodman advises.
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