Picking up the pieces after a storm, flood, or fire is a daunting task. On top of that, skyrocketing insurance rates are a cause for concern if you need to make a claim. So, we turned to the experts at Consumer Reports for some guidance on the dos and don’ts -- so you can get the most out of your policy.
MAKING ENDS MEET: Home insurance | Flood insurance | Car insurance | Pet insurance
If your damage is catastrophic, start the claim process only when it’s safe and OK for you to be there.
- Contact your insurer
- As soon as possible, document everything
- Take plenty of photos and videos
- Make a list of what was damaged and needs repair
If you can’t get to your property, ask your insurer how to proceed to get the process moving. And make sure you are there when the adjuster visits, so you see what they see.
Consumer Reports’ experts say you need to document everything:
- Keep detailed notes on all communication and contact -- everything from missed appointments to what you discussed -- even if you consider any interactions to be “rude”
- Keep every receipt. A standard homeowners policy reimburses for living expenses if you have to stay outside your home for a period of time. You’ll want these receipts if there’s a disagreement or you end up in court.
“After talking with your insurer, do the stopgap work. That is, repairs that must be done immediately to prevent further damage. For example, you might need a plumber to close off water lines,” explained Tobie Stanger with Consumer Reports.
A standard homeowners insurance policy covers damage to the structure and personal property -- up to certain limits and minus your deductible.
Replacement cost coverage pays to rebuild your home and replace stolen or damaged items, at today’s prices.
Actual cash value coverage pays to rebuild your home and replace stolen or damaged items, but factors in depreciation.
“If it’s minor damage, like a few thousand dollars, it might not be worth filing a claim because, in the long run, it could cost you more money in potential premium increases. And if you file too many claims in a short period, you might get dropped,” warned Stanger.
CONSUMER REPORTS: Natural Disaster | Flood | Fire
But there might be exceptions after some storms. Take water damage: small spots on a wall or ceiling could indicate a bigger mess inside a wall or attic. Stanger says reporting it now shows you’ve reported promptly.
Finally, if it’s a large claim -- like a total loss -- you could hire a licensed public adjuster who will work on your behalf and represent you. But it will cost you a percentage of your insurance payout.
In Florida though, if the governor has declared an emergency, a public adjuster’s fee is capped at 10%.
If you think the wording in your policy is misleading, have an attorney specializing in insurance law look it over. The Consumer Federation of America notes that courts have consistently favored policyholders on policy ambiguities.
You can also get help from Florida CFO Jimmy Patronis’ office by calling the state’s Insurance Consumer Helpline at 877-MY-FL-CFO (877-693-5236) or get insurance help online here.