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Member Insurance Companies A Consumers Mini-Guide to Recovery Following a Major Storm

Member Insurance Companies

A Consumers Mini-Guide to Recovery Following a Major Storm

Knowing what to do before or after a major storm hits your area or your home could ease some of the stress following such an occurrence. In conjunction with the National Association of Independent Insurers, a national property and casualty insurance trade association, SDIA has summarized these points to facilitate a speedier recovery following a disaster:

• Report all damage to your insurance company or agent as soon as possible. Downed trees or other landscape damage usually is not covered by insurance unless they have damaged a building or motor vehicle that has such insurance coverage.



• Cover all holes in torn or damaged roofs immediately, so that wind and rain don’t cause further damage.



• Keep all receipts for any emergency repair work to submit to your insurer later for reimbursement. If possible, photograph or videotape damaged property before making repairs.



• Keep all damaged furniture or other expensive items to show the adjuster.



• Make a list of damaged items. If possible, put together a set of records - old receipts, bills and photographs - to help establish the price and age of everything that needs to be replaced or repaired.



• Identify the structural damage to your home and list everything you would like to show the adjuster.



• Deal only with reliable, licensed contractors for repairs. Ask for and verify references and contact your local police, chamber of commerce or Better Business Bureau for complaint information involving the contractor.



• Get written bids from the contractor including details on price and materials to be used. Don’t sign any contracts for repair work or give contractors any deposits until you’ve seen your adjuster.



• Check with your company or agent about whether your homeowners policy includes an "additional living allowance" provision, which will pay for hotel and restaurant expenses if you can’t live in your home due to storm damage.



• Not all losses are covered. There are variations in insurance contracts, specified limits, or extensions of coverage that vary from one company to another. Most contracts cover direct damage only and do not automatically provide for color or material matching to undamaged areas.



• Most policies have a stated period to conclude repairs, usually 180 days from the date of the loss. If it is not possible to complete repairs within this period, request an extension from your company explaining why you need this additional time.



• It is usual and customary for many insurance companies to retail some portion of the estimated loss (perhaps as high as 50% based on a preliminary ACV estimate) until repairs are completed.



• Estimates are exactly that: a preliminary assessment of damages, and final payments may be adjusted up or down to reflect the actual loss you sustained.



• Most policies do not cover the added expense of building updates imposed by ordinance or law. This is usually an optional coverage for an additional premium.

Owners of homes that suffered flood damage in the wake of heavy rains face the daunting task of cleaning up the mess left behind by water and mud. (Note: Most homeowners policies do not cover loss from flood related occurrences. This is an optional coverage.) While this isn’t easy, there is a lot you can do to salvage possessions and minimize further damage. SDIA offers these additional tips:

• Shovel or scrape mud off walls, floors and furniture, then hose them from the ceiling down, before the mud dries.



• Use diluted chlorine bleach to control odors and clean household items, appliances, walls and floors.



• Gradually pump flooded basements - about one-third of the water per day.



• Completely wash and dry major appliances like refrigerators and stoves. In most cases, they will not be damaged unless they were operating at the time of immersion. Because fixtures may often hold water, inspect them and allow them to dry thoroughly before using.



• Thoroughly wash and sterilize food utensils and equipment before using. Any food, which is open and exposed to flood waters, should be thrown away.



• Remove mildew from dry wood with a solution of four to six tablespoons of trisodium phosphate (TSP), one cup of chlorine bleach, and one gallon of water.



• Disinfect or discard all items exposed to sewage.



• Dry wood furniture outdoors, but not in direct sunlight. Remove drawers and other moving parts before the item dries.



• Professional restoration, cleaning and salvage companies can provide additional assistance, and often free advice. Your insurance adjuster is an excellent source of information if the damaged property is covered by flood insurance.

Following this advice will help settle your claim and restore your status more quickly. If you have questions about flood insurance that your agent or company cannot answer, contact the Federal Insurance Administration’s servicing agent at 800-427-4661.