Facing Fire or Smoke Damage?
When disaster strikes, severe fire damage can be the most devastating thing to happen to any property. As fire becomes an increasingly prevalent threat, insurance companies are constantly trying to cut corners on fire insurance claims in an attempt to save money. After a fire, you've most likely lost some personal belongings and areas of your home are completely destroyed. The last thing you need is a homeowners' insurance company giving you a hard time regarding your claim.
First Things First, Check Your Policy
Even if you have replacement coverage for your home you actually may only have "actual cash value" for the personal items that were lost. When you call your insurance company, your agent should notify you about this and suggest buying an endorsement so that your belongings will be covered under a replacement policy.
Secure Your Property
The majority of homeowners coverage policy requires you to take reasonable steps to minimize more harm on your property. In short terms, this is known as your duty to mitigate damages. These steps are fairly small and easy to do, such as covering leaking areas with plastic wrap or turning off the water if you discover a huge pipe burst. Your insurance company will most likely pay these costs when you make your claim.
File Your Claim Immediately
Every homeowner policy will require you to report your loss as soon as possible. You will need to make a call to your agent and submit a "proof of loss claim" in which you will itemize your losses in detail and list the value of each. The longer you wait, the faller you fall down the list when it comes time for the company to send an adjuster to deal with your claim.
Always Keep Track Of Your Living Expenses
Every homeowners policy will include a loss of use clause, which entitles you to adequate reimbursement for living expenses while you're out of your home. Keep in mind, these expenses only include additional living expenses, meaning the difference between what it costs you to live on a daily basis and what it is costing you now. For example, if you ate the majority of your meals at home and your groceries cost you $400 a week and now, after a fire, you're eating out and spending $500 a week, you can claim only that additional $100.