Maximize Your Insurance Payout After A Fire

The last thing you want to do after a house fire is deal with a difficult insurance process. The stress of loss and displacement on you and your family is really enough for anyone to handle on its own. But the reality of it, is that there will be an investigation and tons of paperwork to get through before everything is settled, and life is back on track again. That’s why we’ve developed checklists for before and after such a disaster to help you get through the tragedy as smoothly as possible with the best results.

Before any loss occurs

• Understand your policy and make sure it’s accurate.
  • Look over the fine print and make sure everything that needs to be covered is, and that the descriptions of both property and possessions are accurate and up to date.
  • ie. you add granite counters, install a high tech appliance, knock out a wall or inherit grandma’s engagement ring, you need to let the insurance company know.
• Keep proof of purchase for any high value items.
  • Get a binder and stay organized.
  • Keep an inventory of anything important and up to date values on expensive jewelry.
  • Keep track of your living expenses in case the “loss of use” clause needs to be considered in your payout.
    • The “loss of use” clause will reimburse you for any additional cost, beyond your average living expenses, that is due to displacement by the fire. (hotel, food, etc.)
  • Uploading all of this onto the web is also a really great way to keep track of big ticket items.
    • It has been suggested that using Flickr on a private setting to upload and document pictures, noting value and date of purchase, is a great way to keep track of what matters to you most.

After The Fire

• If the fire is due to any criminal action, immediately file a police report.
  • You have 24 hours to file a report and receive a crime reference #, which your  insurance company will need to calculate your payout.
• Let your insurance company know you plan to make a claim, and then do so as soon as possible.
  • There is a limit on the amount of time allowed to pass between the fire and when you file a claim (usually 30 days). If you do not file within this time frame, the claim may not be considered valid.
• Don’t throw anything out.
  • In the same way that you documented your possessions by taking and posting pictures, take pictures of the damage to your home the best you can.
  • You will also want the physical damage to be seen and assessed by the insurance company’s adjuster as concrete proof.
• Get organized.
  • As with most insurance claims, there is going to be quite of bit of paperwork and communication in order to sort everything out. Keep track of these exchanges.
  • Document the details of the fire. Who was there? Were there injuries? What type of damage occurred and were was it? Are temporary repairs needed (window boarding etc.)?
  • Use a binder for original documents, repair estimates, all replacement costs after the fire ( basic work clothes, toothbrushes, food).
  • Upload all of these documents in the cloud or onto a flashdrive as a backup.
• Ask for an advance on the payout.
  • The insurance company can reimburse you for basic needs (this is where documenting expenses comes in handy), and immediate necessities, and deduct it from the eventual payout.
• Use a private contractor for accurate repair estimates.
  • The insurance company will suggest you use their service to assess repair costs, but you do not necessarily have to follow their advice. An outside contractor can give you an accurate assessment without bias.
• Avoid Claiming Liability
  • Taking the blame will render your claim invalid, and give the insurance company a reason to deny the payout.
• DO NOT allow the insurance company to rush closing your claim.
  • You need time to see where the actual damage is. It could take a few months (three is recommended) to really see the extent of the toll the fire has take on your home and possessions. It is possible, due to trauma or stress, that you missed something important. Closing your claim will deny any further payment regardless of additional need.

If this seems overwhelming, or you feel you are not getting a fair deal, hire a private insurance loss assessor. This person is not paid by the insurance company to find the lowest payout possible, like the insurance adjuster is. They are there as an advocate for you and your family, to make sure what you receive is a fair payout.

We at Chicago Water Damage Co. would never wish this sort of tragedy on anyone, but unfortunately, accidents happen. Being prepared and knowing what to do is how you ensure the safety of your and your family’s future.