Fire Insurance Claim Tips

Remain in control of your personal property until there is a strategy and plan in place for the ENTIRE fire insurance claim. For example, a claimant should prevent the insurance or any restoration company from removing items to be discarded or repaired. If you relinquish your personal property without knowing all of your rights and options, you will throw away thousands of your settlement dollars.

In other words, the money you spend on cleaning damaged property will be deducted from the total claim. This holds true even if the attempts are unsatisfactory. In addition, once you make that decision, it is final. The decision to restore (clean/repair) or replace damaged items is YOURS.

Claims for fire and smoke damage are complex. That being said, progress won’t happen quickly. Above all, nothing good will happen if you rush into a major decision like hiring someone to start rebuilding your home. 

 If you don’t have essentials like clothes or food then ask your adjuster for an advance. As a best practice, put the request in writing and also submit it directly to the insurance company. Most insurance companies will grant this request. However, the insurance company will deduct the advanced amount from the final settlement. Ask about ALE (Alternative Living Expenses). If you have been displaced from your home, you may have coverage that entitles you to this. 

Insurance should pay you for every item that was damaged by smoke and fire. For this to happen, you will need to compile your own content inventory. While this sounds like a large undertaking, it is essential. This portion of a fire insurance claim can make or break the final settlement amount. No one knows your personal property as you do! Start by going room by room. Write down every item, its age, its description, and its approximate price. Don’t overwhelm yourself! If you can’t remember the details then go back at a later date to fill in the missing information. 

Insurance companies use Proof of Loss forms during the fire insurance claim process. In this document, the claimant makes a formal declaration of damages. In addition, most insurance companies require this before they will pay.  

 Keep track of all communications. For example, log every email and phone call. Request that the adjuster from the insurance company re-cap phone conversations in follow-up emails. Similarly, keep all receipts for money spent due to the fire loss. And most importantly, keep copies of all documents that pertain to your claim. 

Don’t make the mistake of discontinuing payment of your insurance premium. The typical insurance policy includes liability coverage. This coverage will offer protection against accidents that could occur at the loss site. 

An insurance company cannot cancel or “drop” you for any reason other than fraud or material misrepresentation. In other words,  you cannot lose your insurance for filing a fire insurance claim.  Be wary if the claim adjuster from your insurance company threatens your claim, discourages you from seeking help from a public adjuster, or pressures you into signing off on a settlement. Report any unethical behavior to a superior or to your State’s Department of Insurance. 

 What is a deductible?

A deductible is an amount you agree to pay as your part of the loss. The insurance company will pay for the amount over the deductible if it is a covered loss. For example, if the covered claim is $2,000 and your deductible is $500, you pay $500 and your insurance company pays the $1,500 balance.

If you have filed a major claim of loss, you will have several departments within the same company involved in your claim. The First will be Mitigation services. Mitigation services are the crew that responds Immediately to secure your property by either boarding up windows, doors, or partial roofs or Tarps to prevent any further damage from weather and potential vandalism. The Phases where you will be asked to pay your insurance deductible will be to the company handling the repairs. Make sure that you have a detailed estimate showing the total amount of the loss including the deductible amount and have an invoice showing that amount. Ask for a receipt of payment for your deductable and any draws or payments you make. 

 We do our best to secure your property after you have signed a contract with us. We provide job site camera systems for all major losses including house fires that have live recorded feeds to help prevent and deter looting and theft. Homeowners' insurance policies cover theft and vandalism, so any losses due to looting in the wake of the fire should be covered. Talk to your assigned adjuster.