Running into a problem with your fire insurance claim can be a very stressful experience. Families rely on their homeowner’s insurance policies after a fire to rebuild their beloved homes and replace their personal belongings. If there’s a hiccup in the process, it can result in families having to pay much more out of their own pockets to get back on their feet.
Without the full help of your insurance company, you may have to make compromises about what you replace or how your home is rebuilt. Otherwise, you may have to dig deep into your own savings (or go into debt) to recover.
These tips will help you navigate common fire insurance claim problems and avoid costly mistakes throughout the process.
Get on the Same Page as the Insurance Adjuster
The insurance adjuster is a professional who evaluates the extent of your loss and recommends a settlement offer to the insurance company. Their list of responsibilities in a fire claim includes:
- Verifying that your insurance policy covers the damage
- Gathering statements from authorities like the fire department or police
- Evaluating the extent of the loss to generate a recommended settlement
It is important that you maintain active communication with your adjuster. If they are not responding or causing unnecessary delays, it can wind up costing you down the line as you will have to pay more in living expenses and may exceed your coverage for those costs.
Provide a Thorough List of Lost Belongings
Part of your responsibilities in a claim is generating a Schedule of Loss document, which lists all of the belongings you and your family lost in the fire.
Take your time as you generate this list. There may be a situation where the insurer pressures you to sign off on a final Proof of Loss. Eventually, you will have to submit a signed, final version, which cannot be added to. However, you can get the process rolling by submitting a provisional Proof of Loss at first. This can give you more time to get help from family or look through photos and receipts to complete your list.
Some insurance policies calculate deprecation as part of the payout. Typically, household furniture depreciates at a rate of 20% per year, while electronics can lose up to 70% of their value in the first year of ownership. Actual Cash Value insurance can leave you short-handed when you go to replace your belongings. If your policy only covers ACV payouts, the best thing you can do is make sure that your Schedule of Loss is complete and accurate.
Negotiating the Insurer’s Offer
Given the financial stakes involved in many fires’ insurance claims, do not be surprised if you have to negotiate with the insurance company. In some cases, the initial offer they provide is just that, an offer. You don’t have to accept it, and they may be treating it as a starting position in negotiations.
If you sincerely believe the offer does not live up to the insurance company’s obligations according to your policy, you can negotiate for what you believe you are entitled to. This often will require evidence and reasons to support why their offer needs to improve.
An insurance lawyer can help you negotiate when you’re dissatisfied with what the insurer’s initial settlement offer.
