If your home was damaged or destroyed by Hurricane Helen, your toughest challenge may yet lie ahead: getting your insurance company or federal government to pay you the money you’re entitled to.
The process is infuriating and disconcerting, and it occurs at an already incredibly stressful moment in life. To make matters worse, the stakes are huge. You can’t go wrong.
The New York Times asked experts what to do and what to avoid. Their advice boils down to two points. You don’t have to settle for the first thing your insurance company or FEMA offers you. And you don’t have to fight them alone.
document everything
Take photos of the damage to your home as soon as possible. When you talk to someone from an insurance company or government agency, take notes about the conversation, including when it happened and what the person said.
If you spend money on repairs or supplies while you’re away, keep all receipts.
Paying insurance claims is not easy
If the damage to your home is small, for example, it won’t significantly exceed your insurance policy’s deductible, think twice before filing a claim.
As the cost of disasters increases, insurance companies across the country are increasingly canceling customers who make one or two claims. If you can’t find insurance, getting reimbursed by your insurance company for a small amount of damage may not be worth the trouble later on.
Most home insurance policies tend to have deductibles of around $1,000 to $5,000, and there may be separate deductibles for wind, hurricane, or certain other types of damage. If you are unsure of your insurance policy’s deductible, please contact your insurance company or agent.
For everyone else, recovery depends on getting the maximum funding allowed by your policy. It’s not easy.
“Give insurance companies a chance to do the right thing,” said Amy Buck, executive director of United Policyholders, a California-based nonprofit that helps people navigate the claims process. says. “But understand that you are not on a level playing field when it comes to accurately assessing losses and calculating the profits owed to insurance companies.”
“Insurers’ overwhelming priority is to help their customers recover from Hurricane Helen as quickly as possible,” Bob Passmore, vice president of the Property Casualty Insurance Association of America, which represents insurance companies, said in a statement. Ta.
Prepare for the fight against flood damage
Your insurance company may offer you a much lower amount than the cost of repairing your home. The company may also tell you that the damage was caused by flooding, which most home insurance policies won’t cover. The federal government sells specialty flood insurance, but few homes affected by Helen were covered by it.
Douglas Heller, insurance director for the Consumer Federation of America, an advocacy group, said this is a particularly common problem in North Carolina. Many homes were damaged or destroyed by landslides and debris flows, which are often not covered by regular insurance. That damage may be covered by flood insurance.
But don’t give up. Heller said just because some or most of the damage is due to landslides doesn’t mean there isn’t any damage from perils covered by insurance. For example, if a tree branch falls off your roof, your home insurance policy should cover the damage even if your home is damaged by a flood or landslide.
When to call a public adjuster
If you’re worried that your insurance company will deny your claim or offer you less than you think you deserve, you can call a public adjuster. These are independent professionals whose job it is to assess the damage to your home and negotiate with your insurance company to get you everything your insurance policy allows.
Hurricane Katrina in 2005, Superstorm Sandy in 2012, and last year’s wildfires in Lahaina, Maui.
“When you get involved in the matter from day two or three, you can gather the evidence that you know the insurance company needs. ” homeowner or business owner. ”
Use of public adjusters is not free. A portion of the insurance claim, approximately 10%, is usually paid. However, in return, you can often get a larger settlement than you could get on your own.
Your state insurance office may be able to help
You may also consider contacting your state’s insurance department. Insurance departments typically have an office that handles consumer complaints. Be sure to copy the insurance company’s copy of that communication.
Don’t expect authorities to intervene with insurance companies, Heller said. The goal is to show the insurance company that you’re not going to give up without a fight.
Heller said if the department sees a pattern of insurance companies mistreating people, it may choose to intervene more broadly, such as instructing insurance companies to change their practices.
When should I call a lawyer?
If you still cannot reach a satisfactory settlement, your core option is to hire a lawyer.
The North Carolina Supreme Court has temporarily allowed attorneys licensed in other states to register in North Carolina to provide pro bono assistance to low-income storm survivors.
But don’t press the button right away.
Hiring a lawyer too soon “gives the impression of being belligerent,” said Clifford Nkeyasen, a Dallas-based attorney who sues insurance companies on behalf of claimants. Also, determine how big of a gap there is between what you want and what the insurance company is offering.
“If you think the contents of your home are worth $100,000 and they send you a check for $10,000, it’s time to hire a lawyer,” Nkeyasen says.
Chip Marlin, a Tampa-based attorney, said the larger the potential claim, the more urgent professional help is needed. “We have sophisticated commercial clients who have purchased very good insurance. They would be crazy not to at least consult a lawyer.”
Both Merlin and Major predicted that many homeowners affected by Helen would not be able to afford to rebuild with insurance money alone. Victims who fall into this category should contact the Federal Emergency Management Agency.
How do I receive assistance from FEMA?
For people who don’t have home insurance or don’t have enough insurance to cover the losses they experience (a group that probably includes the majority of Helen’s survivors), there’s FEMA.
FEMA has a program called Individualized Assistance (IA) that aims to provide emergency housing assistance to people affected by disasters. (FEMA offers many other types of assistance, including paying for hotel stays, car repairs, emergency medical expenses, and child care costs.)
You can apply for FEMA housing assistance online here or by calling 800-621-3362. You can also apply in person if FEMA staff is in your area.
It may seem obvious, but be sure to answer all the questions on the application carefully. Jaclyn Rothenburg, FEMA’s communications director, said many applications are rejected because of seemingly common mistakes, such as misspelling a name or entering the wrong Social Security number.
After FEMA receives your application, they will send someone to inspect the damage. It’s important to know that this program is designed to give you the money you need to make your home livable, not the cost of completely repairing it.
However, what constitutes a livable place is debatable. And FEMA may provide less than you think you need. If this happens, you have options.
Don’t be afraid to challenge your FEMA award
Reese May is chief strategy and innovation officer at SBP, a nonprofit organization that helps disaster survivors work with FEMA. He said the inspector who reviewed your case was tasked with passing as many applications as possible. And, as the New York Times reported, FEMA awards can vary widely based on race and other factors.
According to May, the key advice for FEMA aid is: If you feel that the amount you are offered is not enough to keep your home occupied, or if you are offered more than you can understand why it is not, appeal FEMA’s decision.
Our colleague Hannah Dreyer reports that only 3 percent of people whose applications are denied by FEMA appeal. But even for successful applicants, the benefits of filing an appeal can be significant. “About half of the time, we can double the amount of support available to survivors,” May said.
You don’t have to deal with that appeal yourself. SBP is already working with survivors of Hurricane Helen and is preparing to begin operations in North Carolina. The service is free. You can reach us at femahelp@spbusa.org or by phone at 800-276-9511.
What else can I do?
If you can’t get enough money from insurance or FEMA to repair your home, you have other options.
Some people receive low-interest loans from the U.S. Small Business Administration. Some companies have also opened GoFundMe accounts that raised more than $106 million for disaster recovery efforts last year, but research shows that these campaigns disproportionately benefit wealthy disaster survivors. is bringing. And many charities are supporting people forced from their homes by disasters.
If a disaster is large enough, Congress may provide additional funding through the U.S. Department of Housing and Urban Development’s Disaster Recovery Program. Unlike FEMA aid, that money can often be used to pay for housing reconstruction.
But that aid is entirely at the discretion of lawmakers.
