Now that the threat of hurricanes Helene and Milton has receded, millions of homeowners and business owners are faced with traversing the long process of using insurance to rebuild their lives.
“You’re just traumatized when you have these losses. At some point, you’re just glad you’re alive,†said Don Hornstein, an insurance law expert at the University of North Carolina. “And then you have to turn to the business side of this. It’s tough.â€
Immediately after disasters like these, property insurance is likely not top of mind, but insurance claims are part of the process of resetting. Many buy the policies hoping to be protected when disaster strikes. But oftentimes insurance doesn’t cover what the policy holder thinks it does.
Here are some steps home and business owners should keep in mind when filing an insurance claim after a natural disaster.
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Act fast, do the math
After the immediate emergency response, the first thing a homeowner or business owner should do is call their insurance agent or broker. The deadline to file a claim is generally about 60 days from the date of loss.
There are different types of policies that insure against damage. In the initial call, focus on understanding your policy, including coverage limits, deductibles and exclusions, so you can do a rough calculation of what is covered and what deductibles are at play to decide if you should file a claim, experts said.
Many policies have payouts in complicated percentage formulas. For example, if your roof is damaged, your policy may spell out different deductibles depending on the roofing material, the age of the roof and even the wind speed from the damage event, and the percentage paid out may be based on the insured value versus the cost of replacement, said Amy Bach, executive director of the consumer advocacy group United Policyholders.
Homeowners should weigh their options, as a minor payout may not be worth the long-term ding on your claims history. That’s especially true if you don’t have flood insurance, as the average home insurance policy covers wind damage but generally not flood damage.
Business owners should also check to see if they have business income or business interruption insurance, which covers the loss of income and other costs like expenses, salaries, or rent when a business is forced to close.
All in the documents
To file a claim, keep track of and document everything. Before and after photos and videos are ideal to jog your memory of what's been lost and for proof to help bolster settlement claims. For business owners, keeping a record of costs that are incurred after a natural disaster is important, too.
“You may have evacuation costs, you may have business shut down interruption costs, you may have housing costs, you may have additional expenses that are unusual to your business," said Steve Powell, executive vice president of property and catastrophe for claims management firm Sedgwick.
Once a claim is filed, an insurance company adjuster will come to survey the damage, typically within a few days if conditions allow. Be responsive to adjusters and make sure they see (and document) the damage that you see.
While it’s easy to get frustrated, adjusters are likely stressed, too, said Lawrence White, an economics professor at the NYU Stern School of Business.
“To the maximum extent possible, try not to come across as angry. Try to come across as reasonable,†White said.
If there’s disagreement or concern about the accuracy or fairness of the adjuster’s report from the insurance company, property owners can consider hiring a public adjuster for a second opinion. Their own adjuster can then lead the negotiations with the insurance company. First, however, owners should be aware of the fees the public adjuster charges and check their references.
Repair or lawyer up
Be aware of the deadlines for accepting a payment offer or filing an appeal with the insurance company.
Once you agree to an insurance payout, know that you can update the claim if more damage is discovered during the repairs though there may be deadlines for how long a homeowner has to reopen a claim.
If the back-and-forth with the insurance company drags on, you may consider hiring an attorney to reach a settlement as a last resort. A dispute that ends up in arbitration could stretch out for a year or more.
Other aid sources
For those with little or no insurance, there are government programs that can assist.Â
The Federal Emergency Management Agency offers grants for home repair or replacement for applicants who meet certain conditions. The Department of Housing and Urban Development also offers certain grants that are available for hurricane survivors.
The Small Business Administration offers low-interest loans to renters, homeowners, business owners and nonprofits that suffer losses due to disasters.Â
