What Should I Do After a Property Damage Loss?

If you own a home or commercial property, you may be one of the millions of Americans who experience a property damage loss. Some of the most common causes of property damage include wind, hail, water, and fire. If you have purchased insurance to cover your property, you fortunately have protection in the event of a loss.

Keep in mind, however, that even though you have insurance to help cover the cost of repairs, you must comply with the terms of your insurance policy before the insurance company will pay your claim. Insurance companies are required by law to act promptly and assist you with your claim, but your relationship with the insurer is contractual and places certain obligations on you as the policyholder.

1. Provide Prompt Notice of the Claim

Notifying the insurance company that you have experienced a loss is the first step in the claims process. This may seem obvious (no notice of claim, no payment), but it is also a requirement of your insurance contract. Give notice of the loss as soon as you become aware of it so that both you and the insurance company can investigate the damage.

Even if it is unclear early on whether the claim will exceed your deductible, providing prompt notice will protect you in the event the damage turns out to be greater than expected.

2. Document the Loss

Most people now carry a high-quality camera in their pocket, so take photos of the damage as soon as possible and throughout the repair process. Share these photos with the insurance company.

Keep a running set of notes documenting who you spoke with, what was discussed, and when each communication occurred. Months after a loss, it can be difficult to remember when you contacted a claims representative or contractor or what was said, but detailed notes will help refresh your memory.

Contact contractors you trust and obtain estimates for the cost of repairs. Getting more than one bid is a good idea. Gathering your own repair estimates is important because it is ultimately your responsibility to prove your claim. It also helps clarify for the insurance company what you are requesting.

Do not rely solely on the insurance company to prepare a reasonable estimate. Insurers often prepare their own estimates using proprietary software, but they have a financial incentive to keep costs as low as possible. These estimates are typically prepared by claims adjusters—often without a personal inspection of the property—rather than by contractors who would actually be willing to complete the work for that price.

3. Communicate and Cooperate

After you report your claim, the insurance company will likely assign a claims adjuster to serve as your primary point of contact. Check in with that adjuster regularly. Communication is usually frequent early in the process, but after the initial phase, you may need to take the lead in initiating contact.

Remain professional and keep records of all communications. Phone calls can be helpful because they allow for more informal discussion than emails or letters, but be sure to document each call. A good practice is to follow up with a professional email summarizing the conversation so you have a written record of what was discussed.

The adjuster may ask you to provide information, submit a signed proof of loss, or supply other documentation. Under your insurance policy, you have a duty to cooperate and to respond to reasonable requests for information.

4. How to Deal With an Impasse

If the insurance company is not paying your claim in the amount you believe you are entitled to, request a written explanation detailing the reasons why. Insurance companies are required to explain the basis for denying a claim or paying less than the amount requested.

Review your policy carefully to confirm that what you are requesting is covered. Insurance policies vary, and some provide better protection than others for certain types of claims (such as mold, water backup, or replacement cost coverage).

Ask the insurance company to pay any undisputed amounts immediately. This can allow you to begin repairs while you continue to address the disputed portion of the claim.

Be aware that most insurance policies contain provisions limiting the time you have to file a lawsuit—often as little as one year from the date of loss. If your claim remains unpaid, contact the attorneys at Mehr Fairbanks for a free consultation. You can reach us through our website here or by phone at (859) 225-3731.