Understanding the Insurance Claims Process for Storm Damage

Everyone seems to dread obtaining insurance whether it’s for your life, health, vehicle, or home. One of the most inundating yet important factors in this realm of unknowns is the insurance jargon and lengthy fine print. With this in mind, it’s vital to understand how the claims process works especially if your home has endured storm damage.

You have to face the facts: having adequate homeowner’s insurance can make the difference between an inconvenient hiccup in the road or a major stressful disaster leading to financial burden. Check out this quick blog prepared by Expert Level Remodeling that will help you understand how insurance claims get processed for storm damage. Contact us today to get both– assistance filing your claim as well as quick and professional repair.

Knowing Your Policy is Important

When you meet with a potential homeowner’s insurance company to discuss and purchase a decent and economical policy, you want to be 100% positive about what your insurance policy covers. For example, if you live in a storm prone area, you want to be sure you have significant coverage for storm damage including the roof, windows, structure, siding, and flooding within the home.

It may be normal to become upset after finding out that storm coverage is not sufficient therefore creating a lot of out of pocket expenses.  Make notes when speaking to your insurance representative about exactly what your deductibles are, what is covered, along with what is not covered. It’s easy to forget what’s inside your policy when havoc happens.

Standard home policies may cover your home and most items against storms, but it depends on the insurer. Flood insurance needs to be purchased separately. Let’s look at hail. Most standard home insurance policies will cover hail damages, minus your deductible of course. But damage from the weight of snow, ice, or sleet will be listed as a ‘covered peril’ on your policy. Here are some key elements of a typical homeowner’s policy that specifically relates to storm damage coverage:

Declaration Page

The declaration page is likely your go-to source for most information. Here you’ll find important info about your coverage amounts, coverage limits, and insurance premiums.

Deductible

According to NerdWallet, a homeowners insurance deductible is the amount of a home insurance claim you're responsible for paying out of pocket. For example, say you have a $1,000 deductible on your policy and submit a claim for $8,000 for storm damage. Your insurer will pay $7,000 toward the cost of repairs, and you'll cover the remaining $1,000. You might get a discount on your premium if you raise your deductible–conversely, be sure you have that money in savings to cover the deductible. Typical homeowners insurance deductibles range from $500 to $2,000, though lower and higher amounts may also be available.

Limits

A coverage limit is the maximum amount that your insurance company will pay for on a covered loss. You can find your coverage limit stated in your homeowner’s insurance policy, or by calling your insurance agent.

A special limit applies to certain category items listed in your homeowner’s insurance policy and specifies the maximum amount that the insurance company will pay on those certain category items.

Exclusions

Your declarations page will spell out how much coverage you have, but it typically won’t explain what isn’t covered. For that information, look for sections of your policy with headings like “exclusions” or “losses not insured.”

You’ll likely find lengthy lists of scenarios your insurance company won’t cover, including major disasters such as floods and earthquakes. If your home is at risk from these disasters, you can often buy additional coverage. Be sure you read exactly what is not covered to avoid surprises later.

Documenting Storm Damage

It’s not an understatement to mention that it’s important to document any storm damage thoroughly–including all outside damage as well as inside damage. Save any news reports, take pictures immediately, carefully document any damages. Do not start cleaning up anything until you’ve documented as much of the damage as is safe and wait to handle any big messes until after a claims adjuster has had time to assess the damage. The National Association of Insurance Commissioners NAIC, suggest the following:

• Before removing any debris or belongings, document all losses.

• Take photos or video and make a list of the damages and lost items.

• Save damaged items if possible so your insurer can inspect them, some insurance companies may have this as a requirement in their policy.

Filing a Storm Damage Claim

Most insurance companies have a time requirement for reporting a claim, so contact your agent or company as soon as possible. Your state insurance department can help you find contact information for your insurance company, if you cannot find it. There are some tips on the claim process provided by the Minnesota Commerce Department.

Insurance company officials can help you determine what damages are covered, start your claim and even issue a check to start the recovery process. Or, you can contact a storm damage specialist contractor, and they will help you file the claim and repair your damage in one sweep.

When reporting losses, you will need insurance information, current contact information and a home inventory or list of damaged and lost property. If you do not have a list, the adjuster will give you some time to make one. Ask the adjuster how much time you have to submit this inventory list. The NAIC Consumer Claims Guide has details on what you can do if you do not have a home inventory list.

After you report damage to your insurance company, they will send a claims adjuster to assess the damage at no cost to you. Reporting your claim as soon as possible is a must and, depending on your insurer, you may be able to submit home insurance claims online, through an app, via your agent or by calling the company. An adjuster from your insurance company will walk through and around your home to inspect damaged items and temporary repairs you may have made.

Working With the Storm Damage Insurance Adjuster

An insurance adjuster is responsible for investigating and gathering evidence about the extent of damage or loss after you've filed a homeowners insurance claim. The adjuster helps your homeowners insurance company confirm the legitimacy of your claim and determine how much you are owed–aka cost of repairs. Your adjuster will measure the square footage of the damage and whether it can be repaired or must be replaced. You must be physically present when the adjuster arrives to assure the maximum benefit on repair damages. The adjuster will look at your pictures, inventory list, receipts, and other documentation you have. It is vital to communicate clearly and show all documentation to your adjuster.

Once the adjuster’s report is submitted and a settlement amount is agreed upon, your insurance company will release the funds for repairs.

Understanding the Storm Damage Claims Settlement

According to consumerfinance.gov, replacement cost gives you funds to cover the costs to rebuild your home or repair damages using similar materials. Actual cash value gives you funds to repair or rebuild based on the value of your home, considering its age and condition or market value. It’s important to note that the market value of your home may not match the replacement value. That’s because, in some locations, the materials and labor that go into rebuilding your home may be less than the overall value of your property.

Your homeowner’s insurance company will likely pay your settlement with a check made out to both you and your mortgage servicer or lender. Most mortgage agreements require this to protect the lender’s interest. Typically, your servicer will release a portion of the settlement money before work begins so you can hire a contractor. An insurance company may have lists of licensed contractors or construction companies that they already work with or you can hire your own.  As the work progresses, the servicer will typically release more money. The rest will be released once the job is finished and the home passes inspection.

If you have a mortgage, you will still be responsible for making your payments while your insurance claim is paid out.

Keep in mind that deductibles are deducted as well as any depreciation and policy limits as stated above.

Appealing a Storm Damage Claim Decision

• Appeal the claim with your insurance company. If you've reviewed your policy information and believe your home insurance claim was incorrectly denied, you can call your insurance company and ask them to review your claim again, or even request a different claims adjuster be sent to perform a new inspection. Gather any documentation that may help your case, including photos, videos, etc. and submit them along with your request for an appeal.

• Hire a public adjuster, at your expense, to review your claim. If your appeal was denied, you have the legal right to hire an independent or public insurance adjuster to review your claim. A public adjuster isn’t affiliated with any particular insurance company and can help you prove that your claim should have been paid.

• File a complaint with the state of Minnesota’s Insurance Division. If you’ve filed an appeal and hired a public insurance adjuster but your claim is still denied (or the settlement the insurance company is offering is too low), you can register a complaint with your state’s department of insurance.

• Last but not least, hire an attorney to dispute the claim in court. If all of these steps have failed and you want to take your insurance company to court over the denial, you’ll need to reach out to an attorney for assistance. A lawyer who specializes in insurance claims can guide you through the process, but you’ll pay an hourly rate and other fees. You’ll want to weigh those extra costs against any potential settlement, or worse, having your claim denied again.

Count on Our Minneapolis Storm Damage Specialists at Expert Level Remodeling

Expert Level Remodeling has over 20 years of experience in storm damage inspections and clear reporting has earned them a trusted reputation with numerous agents in the Twin Cities, and our team is ready to work with you! Check out our reviews! From hail denting your home’s siding and breaking windows to ice dams pulling down your gutters, we can help. Request a free estimate today!