Your home may sustain major damage in a natural disaster like a hurricane, flood, or storm, which is why it is important to understand how to make a claim with your homeowner’s insurance. Let’s take a closer look at the steps and information necessary to make sure that your biggest investment is protected and how to restore it after a disaster.
Contact Your Insurance Company
The first thing to do if your home has sustained damage is to get in touch with your insurance provider and file a claim. Typically, you can do this over the phone, by email, or on their website. Be sure to have your policy number and any other pertinent information on hand when you get in touch with them. The first step in the claims process is to have an adjuster come out and inspect the damage. You should also ask them when you can expect your insurance loss draft check.
Contact FEMA (Federal Emergency Management Agency) to register for assistance. They can be reached at (800) 621 – 3362 or visit diasterassistance.gov
Contact Your Lender
After you have filed a claim and registered with FEMA, contact your mortgage servicer. If you need payment assistance due to the natural disaster they will be able to help you and discuss the process to restore your property. Disaster relief will be specific to your loan type and individual needs. Assistance may look like the following:
- No late fees for late payments
- No reporting of late payments to the credit bureaus
- Flexible loan payment options based on your individual situation
- Other loss mitigation or forbearance options
Document the Damage
Documenting your property’s damage is necessary. This requires documenting the damage with pictures or videos and saving receipts for any costs you spend. Making an inventory of your possessions will help you keep track of what was damaged.
File a Claim Form
You will receive a claim form from your insurance provider to complete. You will be asked to fill out this form and to list any other pertinent information in addition to the details of the damage to your house. Make sure you accurately and completely fill out the form.
An Insurance Adjuster Will Assess Your Home’s Damage
An insurance adjuster will be given your case when you've submitted your claim form. The adjuster will examine the home damage and calculate the value of your claim.
Negotiate Your Claim
If you don’t receive the full amount of money from your claims form, you may have to go back to your insurance adjuster to negotiate additional funds. This is when taking additional pictures and keeping copies of all receipts of repairs you made to the house is very important. Sometimes you have to prove to the insurance company the amount of damage your property has sustained.
Receive Your Settlement
You'll get a settlement check when you and the adjuster have come to an agreement. These funds are intended to reimburse you for repairs you need to make to restore your home to its original condition. If you have a mortgage, when you receive your insurance loss draft check, depending on the amount of damage, it may be co-payable to you and your lender. As a mortgage provider, there is a financial interest in ensuring the property is restored. You should notify your lender as soon as you receive a check. For minor damage, in most cases, your lender will endorse the whole loss draft check to you to manage all repairs. For significant damage, your lender will monitor the progress of the repairs on your home and work with you to ensure that your property is restored to its original condition. This will also help protect you from incomplete repairs or potential fraud from unlicensed contractors. For major damage, you will need to endorse the check to the servicer where it will be deposited into an interest-bearing account. In most situations, funds are remitted to you when the initial requested documentation is received, when repairs are 50% complete and when repairs are 100% complete.
How Do You Know if Filing a Homeowner’s Claim is Right for You?
When filing a claim with your homeowner’s insurance, it is essential to acknowledge that doing so might result in increased rates, However, this doesn’t imply that you should not leverage your insurance coverage altogether. The decision to file a claim should be a calculated one, based on your deductible.
Your insurance deductible is the sum you are required to pay before your insurance coverage becomes effective. If the difference between the projected cost and your deductible is relatively minimal, it might not be financially prudent to proceed with filing a claim.
Your insurance provider might offer an estimate, either free of charge or for a fee – consult them for details. Alternatively, if they require you to initiate a claim before providing an estimate, you should consider engaging an independent contractor to evaluate the costs. However, this option comes with certain stipulations. Your contractor will need the appropriate licenses and insurance, and provide a comprehensive, itemized list that outlines the repairs and its associated costs. Once you have a precise estimate of the anticipated repair expenses, you can make an informed decision about whether filing a claim aligns with your best interests.
Filing a homeowners insurance claim after a disaster can be a daunting task, but it's important to remember that you're not alone. Your insurance company is there to help you, and they'll walk you through the process step-by-step. At Standard Mortgage (NLMS#:44912) the team of loan officers and mortgage servicing professionals are here to help you through this process.
