Enjoy complimentary access to top ideas and insights — selected by our editors.
As shell-shocked residents begin to try and assess the damage to their homes and businesses, the decisions to be made and the information to be provided will be almost overwhelming. It won't be an easy process, but understanding some of the terminology and what to generally expect going forward can help expedite claims for policyholders and insurers.
Here are some tips and steps to help streamline the process.
- Contact your insurance agent or the claims department for your homeowners or business coverage to file your claim as soon as possible. Local brokers and their agents were probably affected by the fires as well, so they will understand much of what you're experiencing. Listen to their recommendations, use the company's app if possible, and understand that this will be a process.
- Make sure to document everything — the people you speak with about your claim, what they told you, information they're requesting. Get a notebook or binder to collect your notes, receipts from lodging, meals, replacement clothes, medications and any other expenses associated with your claim. Also track mileage, where you went and gas purchased for any trips related to your claim. These will be vital to being reimbursed for your expenses. When it is safe to view your home, apartment or business, take photos of the damaged items and don't discard them until the adjuster says to do so.
- Make sure you understand what your insurance policy covers — homeowners, business interruption, auto and other policies cover different aspects of a claim and will pay according to the predetermined limits in the policy you purchased. According to the Insurance Information Institute,
a standard homeowners policy will cover fire damage (including wildfires) to a structure and some of the contents. A renter's policy should cover a renter's belongings. Jeff Moore, president and chief acquisitions officer of ATI Restoration also advises understanding your contents coverage. "This insurance applies to personal items not permanently affixed to your home like clothing, electronics and furniture. If you experience a total loss, you may receive the policy limits, but be prepared to provide purchase receipts for claims." - If you've been displaced from your home, additional living expenses (ALE) coverage can provide funds for rent and meals up to the limits in your insurance policy. Rebuilding takes time, so consider the long-term impacts of being in a temporary space. "When selecting alternative lodging, consider your children's schooling. Think about their current school and where you would prefer them to go during this transition," advises Moore. "Also factor in your daily activities: work, gym, kids' sports practices and games. Finding a temporary home that accommodates these needs can ease the adjustment for your family."
- The rebuilding process, especially when a large area of homes and businesses are impacted, can take longer due to a variety of issues such as a shortage of building supplies or labor. Other factors could include whether or not the new structures have to be built to meet new building codes, and even clearing away the debris from the damaged structures takes time. Moore says some policies cover debris removal and recommends checking your policy to see what is covered as part of the reconstruction process.
The recovery process following the wildfires will be long and painstaking for residents, businesses, insurers, restoration companies, agents, brokers, and anyone else involved as these communities rebuild. However, as with any great endeavor, time and patience will play important roles.
