What is the claims process, and what can I expect?
Your homeowners insurance policy covers damages to your home and personal property after some types of disasters. Renters’ insurance policies cover damage to your personal effects.
It is important to know what your policy covers and what exclusions apply. Standard home insurance policies do not cover earthquake or flood damage, except for water damage caused by broken or burst pipes. You can purchase supplemental earthquake or flood insurance policies if you live in an area at risk for those types of disasters. The Federal Emergency Management Agency (FEMA) operates a flood insurance program.
Insurance companies may exclude or limit coverage for certain types of disasters that are normally covered in specific geographic areas. For example, a policy that covers wind damage from tornadoes might exclude hurricane damage for property owners who live near the Atlantic or Gulf coasts. Businesses and homeowners in areas prone to hurricanes or wildfires may need to purchase additional coverage.
If a disaster occurs, the following steps can guide you through the claims process:
- Get somewhere safe: If you cannot safely return to your home, find temporary housing while the claims process is underway. Disasters like wildfires, hurricanes, and tornadoes can cause so much structural damage that it is unsafe to stay in your home.
- Review your insurance policy: Before contacting your insurance company, take a moment to review the details of your coverage. Key details include the following:
- Deductible: The amount you must pay for repairs before your insurer starts paying.
- Policy limits: The maximum amount the insurer will pay on a claim.
- Coverage for damaged items: Your insurance policy might pay the replacement cost of damaged or destroyed personal property — the amount you need to buy a new item. However, it may only pay the actual cash value, which is the value of the item before the disaster, but after depreciation.
- Notify your insurance company: As the policyholder, you are responsible for informing your insurance company that you have experienced a loss. It is best to do this as soon as possible after a disaster. The company may have a phone number for reporting losses, a form on its website, or a mobile app. Be prepared to provide your name, contact information, and policy number. The insurance adjuster will need to contact you during the claims process, so if you're in temporary housing, make sure to let them know.
- Receive acknowledgment from your insurance company: The company should acknowledge receipt of your claim within 24 hours. They will give you instructions on the next steps and what to expect. An adjuster will be assigned to inspect your property and estimate the total damage. While some insurance companies have emergency teams to help process claims after a disaster, it may take longer than usual due to the high volume of claims. For example, the California wildfires have resulted in thousands of claims within a short period.
- Avoid making permanent repairs to your property: You must protect your property from further damage, but leave the property in its damaged state until the insurance adjuster's visit. The adjuster needs to see the extent of the damage and produce an estimate for the repairs. If you hire someone to make permanent repairs before the adjuster approves the cost, some or all of the repair costs may not be covered.
- Make temporary repairs: You can make temporary repairs to protect your property. For example, if you have broken windows, you can use tarps or plywood to cover them. This will keep rain and debris out while allowing the claims adjuster to see the full extent of the damage. If you suffered wildfire damage, you can create defensible areas around your home to reduce the risk of further damage if the wildfires return.
- Verify the adjuster’s credentials: Major disasters bring out scammers. Ask your insurance company for the name of your adjuster. When the adjuster arrives at your home or business, ask to see their identification.
- Keep all of your receipts: You may incur additional living expenses because of the disaster, as well as expenses for temporary repairs. Your insurance policy may cover some or all of these expenses. You will need proof, so keep all your receipts.
- Inform the insurance company of any repair estimates you receive: You can begin planning for permanent repairs, even if you shouldn’t make those repairs yet. If you get estimates for repairs, be sure to provide copies to the adjuster. The adjuster will base their offer on your policy’s coverage and the damages they documented at your property.
What tips can help me make an effective insurance claim?
While adjusters and other insurance company employees are often kind, empathetic, and helpful after a disaster, they are not exactly on your side. You can take steps to protect your rights and ensure the adjuster has all the relevant information to make a fair offer.
- Provide evidence: Give the insurance company as much supporting documentation as possible. This may include photos and videos of the damage, receipts, bills, and repair estimates. Businesses can provide inventory reports and daily sales logs. Homeowners can complete a Home Inventory Worksheet to document their personal property.
- Cooperate with the insurance company: Promptly return calls or emails from the adjuster. Respond quickly to requests for documentation or information.
- Be proactive with the adjuster: Try to schedule the adjuster’s visit at a time when you can be at the property. Make sure they see all of the damage. A simple walkthrough is not enough to get a complete picture of your losses.
- Document all contact with the insurance company: Keep a log of all phone calls and visits. Save all emails and other correspondence. You might need this if you end up in a dispute with the company.
- Make copies of all documents: Keep copies of all documents you send to the insurance company and anything the company gives you.
- Do not sign anything you don’t understand: If the insurance company asks you to sign anything, make sure you have read it and understand it. You can consult an attorney before signing.
What happens if my claim is rejected?
You have several options if the insurance company rejects your claim. Submitting a Request for Information about an Insurance Denial can give you more information about why they reached their decision.
- Request a new adjuster visit: You can ask the company to have the adjuster — or a new adjuster — visit your property again to reassess the damages and their cause.
- Get a second opinion: You can have a licensed contractor inspect your property and give you a damage and repair estimate. This can serve as a counter-proposal to the insurance company’s rejection or lowball offer..
- Hire a public adjuster: Public adjusters work independently of any insurance company. You can hire one to inspect your property and produce an estimate. You will be responsible for the adjuster’s fees, which can be as much as 15% of the insurance settlement.
- File an appeal: Your insurance company might have a process for appealing a claim denial.
When is it time to talk to a lawyer?
An attorney can help make the claims process easier. You might want an attorney’s assistance from the very beginning, or you might consult with one after receiving the adjuster’s offer. Attorneys can help with the following:
- Reviewing your insurance policy and explaining what it requires and allows;
- Determining whether a settlement offer is fair;
- Negotiating a settlement offer on your behalf; or
- Advocating for you in an appeal or other challenge to the company’s decision.
Where should I keep my insurance records and what happens if they are destroyed?
It is always a good idea to keep important documents away from your home or office. Disasters like floods or wildfires can damage or destroy documents that you will need for the claims process.
Your insurance company will have a copy of your policy. You might consider the following storage options for other important documents:
- A safe deposit box;
- A location away from your home or office, such as a family member’s home; or
- A cloud-based storage service like Dropbox or Google Drive.
You can replace government-issued documents like your birth certificate by contacting the appropriate government agency. You might be able to replace bank statements, credit card statements, and other records by contacting the companies that issued them.
Additional resources for insurance claims after the Los Angeles wildfires
The California Department of Insurance is offering information and resources for wildfire-related insurance claims:
Still have questions? Ask a Rocket Legal Pro!
The insurance claims process can be complicated and confusing. Dealing with a claims adjuster might be the last thing on your mind after a natural disaster. You do not have to handle these issues alone. Rocket Legal Pro can connect you with a reliable, affordable legal professional.
This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.
