Tips for Filing Fire Insurance Claims

A fire destroys your home and personal belongings. You don't want your homeowners' insurance company to deny your claim. Here are some important tips for working with your homeowners' insurance carrier.

1) Request an advance on your fire insurance claim

Due to difficult situations, you might have left behind toiletries and clothing if you had to go. Some of these items may have been destroyed in the fire. Fear not. Call your insurance company and request a check be delivered to your lodging. So you can buy necessities without waiting for your final insurance coverage.

Take care of yourself, but not too much. Buying frivolous items will not be reimbursed by the insurance company. For example, if you need slacks and a dress shirt for work, don't go to the priciest store in town.

Remember that this advance will be subtracted from your overall insurance payout, so don't go excessive.

2. Keep a list of everything you've lost

You'll need to prepare a list of everything you've lost in the fire, which will require everyone's time and consideration. Make this list as quickly as possible, so you remember to mention everything lost when you file your fire insurance claim.

Don't toss anything away. Keep the things on your list until the insurance adjuster sees the damage. If you discard them, your insurer may refuse to compensate you.

3. File a claim immediately and pressure the insurer to respond.

Fire insurance claims must be filed as quickly as possible, so call your homeowners' insurance agent immediately. The insurance company requires a "proof of loss claim" is required by the insurance company, " which lists all of the things lost and their worth. Your early intervention is critical if the fire affects many other homeowners.

A delay in filing a claim could mean waiting for the adjuster to reach you. Include the following details in your claim:

• Loss date
• Loss/Damage Type
• Damaged area
• Injuries
• Other players
• Home condition
• Contents damage description
• Temporary repairs
• A cop report

Dealing with insurance companies requires numerous phone calls, emails, letters, and documentation. Keep track of all documents and correspondence, including post office receipts. Note the date and time of every phone call and an in-person meeting with your insurance company. The binder or file organizer will help you organize different sorts of correspondence, invoices, and insurance papers into separate sections.

Always keep originals of everything. If your insurance company needs a document copy, save the original. The more prepared you are, the better prepared you'll be if your insurer starts playing, "he said, she said."

Since you're following the policy's requirements, your insurance company should respond immediately to your fire insurance claim. Most jurisdictions mandate insurance firms to respond to claims within a certain time frame.

If there are no concerns with your fire insurance claim, they must pay you within 30 days. If your insurer is slow to respond, write them and tell them you'll send a copy to the state's insurance department. The corporation will not want to make a mistake or delay if they know they are being watched.

4. Protect your property from damage

Most insurance providers will expect you to maintain your property, so protect your stuff from additional damage. Of course, this is unneeded if the item is lost. If only a portion of your home is affected, take proactive steps to prevent further damage. Insurance firms call this "damage mitigation," which simply means reducing harm.

Damages can be reduced by:

• Protecting the walls and roof from the elements
• Construction of a fence to deter looters
• All embers smolder
• Moving potentially damaged property (for example, moving the unharmed television out from underneath the hole in the ceiling)

5. Track your living costs

Your insurance policy includes a "loss of use" clause that reimburses you for living expenses while you're away from your damaged house. However, you are only entitled to the difference between what you paid while displaced and what you paid during home. For example, if your monthly living expenditures are $3,000, but you have to add $1,000 for hotel stays, restaurant meals, laundry, and extra petrol for your car, your insurance company will only reimburse you the $1,000.

Some people choose to stay with family or friends in a motel in many cases. Your insurance company may pay your hosts for extra expenses, so ask your host to categorize them. Note that your insurance provider may wish to negotiate this fee with you. Remind the employer that staying with family saves them money on hotel and meal bills.

6) Maintain receipts and paperwork for all repairs.

You can restore or even rebuild your home after a fire. Actual cash value policies reimburse you for the cost of restoring your home and goods to their pre-fire fair market value.

Replacement policies pay the cost of rebuilding the home and its contents, regardless of the worth of the items lost. Replacement coverage does not require you to rebuild on the same lot. You can rebuild anywhere. So, if it's the same value as your old lot, it's covered. Of course, if you move to a more costly area, you'll have to pay the difference. To invest the money in something unrelated, like a business or education fund, the "replacement" policy becomes an "actual cash value" policy, paying out around 15% less.

The insurance carrier will require a fair market value or replacement cost estimate of damaged property. Insurance companies will send their adjusters, so keep in mind that they work for the insurance company, not you. You don't have to take their numbers, and you can employ your independent estimator or contractor.

You pay the estimator or contractor, so they will look out for your interests. A buyer would have paid for your house and possessions right before the fire; therefore, don't accept any amount from the insurance company.

Choose a contractor with care. Choose someone who is not just competent at building but also knows how insurance companies work. Before you begin any work, make sure you and the insurance company agree on the scope of work.

7) Pay your insurance premiums.

Many people make the mistake of stopping paying their insurance payments after a fire. Mistake number one. Your homeowners' insurance covers your pets as well as your home. Devastated by the domestic chaos, Spot may chew up your pricey sofa. But if you quit paying your premiums, Spot's puppy aggression will not be covered.

Remember to tell your insurance agent where you'll be staying so they can add it to your liability policy. In the event of a total loss, you can also ask that the portion of the policy that covers the structure of your home be reduced. Adjust after your new home is built.

8) Not until you say so

Insurance companies close fire claims quickly, especially in big disasters. The longer your claim is open, the more likely you will uncover something new. Your initial insurance claim may be incomplete due to the stress and confusion of the situation. Wait a few months before agreeing to close your claim. This is your power.

Insurers will try to close a claim by noting your check. "Acceptance of this money closes your claim," for example. You need not accept. Then send them a note thanking them for the payment but insisting that the claim is not closed.

9) Do not fear losing insurance coverage

Many people fear that submitting fire insurance claims may cause their homeowners' insurance company to do the same. No. Your rate won't go up, and you won't lose coverage if you only file legitimate claims after real disasters, aren't a "habitual claimant," and don't commit fraud.

Get Legal Help

If you need to report a fire to your insurance company, do so immediately. You may have to file various paperwork and answer questions from claims adjusters and investigators. If you feel you are not being adequately reimbursed, you should contact a local insurance attorney. You can hire an insurance attorney right from the get-go to help you make the insurance claim.