Filing an Insurance Claim After a Disaster
Filing a claim with your insurance is typically one of the first things you should do after a disaster, even before you apply for assistance with FEMA. Unfortunately, please note that you will have to have already been insured at the time of the disaster damage. You can’t buy insurance after the disaster to cover damages.
First Steps
When you are able to, you should call your insurance company to find out if your losses are covered and ask about the dollar limit of your policy. Be sure to ask about your deductible, which is the amount you will need to pay out of pocket before your insurance kicks in. They will give you a claim number and authorize certain temporary repairs. An insurance adjuster will also call you to set up time to inspect the damage and come up with an estimate. Make sure your insurance agency knows how to reach you by phone, e-mail, and mail.
After talking with your insurance agency, preserve evidence of your losses. Document all damages with pictures, videos, and lists. You should keep damaged property separate from other property. Do not throw away damaged items until you’ve had an insurance estimate.
The Inspection
The insurance adjuster will inspect the damaged property at a time convenient for you. They should explain the claims process, your deductible, how you will get paid, and any extras provided by your policy, like temporary living expenses. They should also explain whether or not you should file a proof of loss. This is a sworn statement about the amount of money you are requesting, along with documents to support this amount. It isn’t the same as your insurance claim.
The adjuster will value your property either by its actual cash value or its replacement cost value:
Actual Cash Value = Cost of Replacement - Depreciation (i.e. Normal Wear and Tear)
Replacement Cash Value = True Cost of Replacing or Repairing the Property
After the inspection, call a construction contractor or repair company to get an estimate. This will be helpful in negotiating your claim with your agency. Remember that until your insurance agency has had a chance to look at the damage, you should make only temporary and necessary repairs to your home. Keep all receipts.
Negotiating The Claims Process
You can always negotiate the amount your insurance company offers you. A few tips for doing so:
Keep notes about important dates, names, phone numbers, and conversations related to your losses.
Remember that you do not need to accept the first offer or estimate your insurance company gives you.
Get at least two independent estimates from licensed, reputable contractors.
Don’t sign a claim form or check that says Final, Full, Waiver of Rights, or Release until you are sure you understand your rights, coverage, damages, and the full extent of your claim.
If you are being treated unfairly, call the Texas Department of Insurance Consumer Line at 1-800-252-3439