The following tips may be helpful when filing and settling an insurance claim following a disaster. Remember, you bought insurance to take care of emergencies and you should be satisfied with the way insurance companies honor their part of the contract.

1.     Contact your insurance agent as quickly as possible. Let them know about your losses. If you are relocated temporarily, provide the address and phone number where you can be reached. The claim process may begin in one of two ways. Your insurance company may send a claim form for you to complete or an adjuster may visit your home first, before you are asked to fill out any forms.

2.    Take pictures of the damage, if possible, before beginning repairs.  If you repair small items such as TV antennas, window covering or fences before the adjuster arrives, it may be difficult to prove the damage. Pictures can also be used as evidence for tax deductions.

3.     Protect your property from further damage or theft. Patch roofs temporarily. Cover broken windows or holes in walls with plywood, canvas or plastic. If household furnishings are exposed to weather, move them to a safe location for storage. Save receipts for what you spend and submit them to your insurance company for reimbursement. Do not make permanent repairs without first consulting your agent. Unauthorized permanent repairs may not be reimbursed.

4.     Most homeowners/wind policies cover additional living expenses. Your insurance company should advance you money if you need temporary shelter, food, and clothing because you can no longer live in your home and your clothes have been ruined. They will also advance you money if you need to replace major household items immediately to continue living there.

5.      Keep receipts for everything you spend. Make sure the check for additional living expenses is made out to you and not your mortgage company, bank or other lender. This money has nothing to do with repairs to your home and you may have difficulty depositing or cashing the check without their signature.

6.     If your car was damaged and you have “comprehensive” coverage in your auto insurance policy, you should also contact your auto insurance company.

7.     Keep accurate records:

8.    A list of cleaning and repair bills, including materials and the cost of rental equipment.

9.    A list of any additional living expenses you incur if you have to temporarily move out of your home due to severe damage. Keep all motel and restaurant receipts as well as car rental receipts.

10.     A list of all actual losses, including furniture, appliances, clothing, paintings, artifacts, food and equipment, regardless of your intent to replace the objects. Photographs of ruined homes or objects are excellent evidence for later documentation.

11.    Try to document the value of each item lost.  Bills of sale, canceled checks, charge account records and insurance evaluations are good evidence. If you have no such records, estimate the value, and give the place and date of purchase.

Preparing for the Adjuster

12.     An adjuster is a person professionally trained to assess the damage. The more information you have about your possessions, the faster your claim can be settled. Your home inventory will be of great benefit.

13.     Have your list of damaged items and any pictures of the damage ready for the adjuster. Don’t forget to list every item including clothing, sports equipment, tools, china, linens, etc.

14.     Don’t throw away damaged items because the adjuster will want to see them.

15.     Identify the structural damage to your home and other buildings on your property. Make a list of everything you want to show the adjuster when they arrive. In some cases, the adjuster may recommend hiring a licensed engineer or architect to inspect the property to ensure it is safe. You should also get the electrical system checked. Most insurance companies will pay for these inspections.

16.     If possible, get written bids from reliable, licensed contractors on the repair work. This should make adjusting the claim faster and simpler. Beware of door-to-door salesmen. Sometimes undependable workers enter a damaged area, make cheap repairs, and leave before residents discover that the repairs are inadequate. Contact the local Construction Competency Board for information on local contractors.

17.    Remember, homeowners’ insurance policies usually don’t cover flood damage (rising water) but they do cover other kinds of water damage. For example, they would generally pay for damage from rain coming through a hole in the roof or a broken window as long as the hole was caused by a hurricane or other disaster covered in the policy. You will need a separate flood insurance policy to cover flood damage from any rising water. Contact your insurance agent regarding your coverage and the need for flood insurance.

18.     If your home was severely damaged, you may have to rebuild sections in accordance with current building codes. In some cases, complying with the current code may require a change in design or building materials and may cost more. Generally, homeowners/wind insurance policies will not pay for these extra costs. Some insurance companies offer an endorsement that pays for a specified amount toward such changes.

19.     Most insurance companies will pay for removal of trees that have fallen on your home, but they will not pay for the removal of trees that have fallen and haven’t caused any damage to your home. Neither will they pay to replace trees or shrubbery that has been damaged.

20.     Don’t be in a hurry to settle your claim. Although you may want to have your damage claim settled as quickly as possible, it is sometimes advisable to wait until all damage is discovered. Damages which have been overlooked in an early estimate may become apparent later. If you are dissatisfied with the settlement offer, talk things over with your agent and adjuster. Unresolved disputes or dissatisfaction with your insurance company should be reported to the Florida Insurance Commissioner’s Office.

Remember, before the hurricane is the time to make sure that you have the appropriate insurance coverage – NOT AFTER! Contact your insurance agent to verify your coverage.  Contact an attorney who specializes in insurance law  to make sure that you know and understand what your policy covers and doesn’t cover. After a disaster is not the time for surprises and finding out that you are not covered for losses.

At Taylor, Warren & Weidner, we are happy to review your insurance policies and explain the types and amount of coverage that you have free of charge.  Call us for an appointment at (850) 438-4899.

When storms are heading towards land, most insurance companies stop selling new policies or won’t allow coverage increases — or both.  That’s why it’s important to evaluate the insurance coverage you have for your home and/or business before a storm enters the Gulf.

Flood Insurance

A typical homeowners insurance policy doesn’t cover damage from flood or other surface water, including storm surge.  You will need a separate flood insurance policy, available from the National Flood Insurance Program (NFIP).  NFIP policies have a 30-day waiting period before coverage becomes effective.  If you have been told that you do not need flood coverage, consider this- some insurance policies define flood as “water flowing across your property.”  A heavy rain could potentially cause flood damage that would not be  recoverable under your homeowner’s policy.  Even if you don’t live in a low lying area or near a water source, it’s a good idea to consider flood coverage.  For more information about the NFIP program and Flood Insurance: http://www.fema.gov/pdf/nfip/summary_cov.pdf

Coverage For Temporary Living Expenses

Standard homeowners policies include additional living expenses coverage (ALE).  ALE pays for costs you incur when you can’t live in your home due to damage caused by a severe storm. These expenses  include reasonable hotel bills, meals, and other expenses beyond what you would otherwise pay while your home is being rebuilt. You should review your policy to see how much coverage you have and how long it will be in effect.

Coverage For Personal Property

Your homeowners or rental policy provides coverage for your belongings, but it  might not be a sufficient amount for the value of these belongings.  Review your policy to see how much coverage you have for your personal property.  If you have made recent purchases like furniture, appliances, and electronics, you should verify that your contents policy will provide comparable compensation for the value of these items.  You may also consider a Valuable Personal Property policy.  This supplemental policy covers valuable items, such as jewelry, cameras, musical instruments, or fine art.

Even if you don’t think you need to purchase additional coverage, you should review your homeowner’s policy annually. You may need to increase your policy limits if you have made major purchases, completed major renovations, or not taken rising construction costs into account when estimating the cost to rebuild your home or business.

If you have questions about your homeowner’s insurance or concerns that you may need additional coverage, call our office for a free consultation with an attorney to review your insurance policy.

Dr. and Mrs. Corban owned a home in Long Beach, Mississippi which was damaged as a result of Hurricane Katrina on August 29, 2005.  The Corbans had purchased a homeowner’s policy from USAA which afforded protection from windstorm damages.  The Corbans properly notified USAA of their claim for damages.  USAA conducted an inspection of the Corbans’ residence and made the determination that the majority of physical damage was a result of flooding from storm surge which was excluded by the homeowner’s policy.  As such, USAA refused to pay for damages it alleged were the result of water or damages which resulted from wind and water acting together.  The Corbans filed suit.

Both parties filed Motions for Partial Summary Judgment on the issues of the “anti-concurrent” (”ACC”) clause contained in the homeowner’s policy which excluded damages from wind and water acting together.  Interpreting a 2007 decision of the 5th U.S. Circuit Court of Appeals, the Circuit Court of Harrison County found that “storm surge” was an excluded peril and that the ACC exclusion contained in the policy effectively barred coverage for any damage caused by water alone or by wind and water in combination.  The Corbans appealed to the Mississippi Supreme Court for clarification on these rulings.

The state’s High Court issued a favorable ruling for the Corbans and found that a homeowner’s policy may exclude damages when caused by a combination of wind and water acting together, but the ACC exclusion did not apply because the wind and water had acted separately.  The Court determined that a jury must determine which damages were caused by water and which were the result of wind in the Corbans case.  USAA recently settled the Corbans’ claim without the need for a jury trial.

To read the decision:  http://www.mssc.state.ms.us/Images/Opinions/CO58302.pdf

In this case, Keystone Equipment (the “insured”), purchased insurance coverage from Lloyds Underwriters (the “insurer”) for a commercial tractor trailer.  The insurance policy had an effective date of November 30, 2004.  On December 18, 2004, the tractor trailer was stolen.  The insurer denied the claim although the policy provided coverage for theft.  The written policy contained a “Garaging or Secured Yard Warranty” which required the insured to keep the tractor trailer in a closed garage, a guarded enclosed parking lot, or parked beside the insured’s residence.  Because the insured had failed to store the tractor trailer in either of these ways, Lloyds found that Keystone was in breach of this warranty and was not entitled to recover damages for the stolen tractor trailer.  At the time of the loss, Keystone had not yet received a copy of the insurance policy and was unaware of the warranty provision.Keystone filed suit against Lloyds for breach of contract and alleged that the insurer had not complied with the notice and delivery requirements of Florida Statutes Section 627.41 and 626.922.  These statutes require that the insurer provide a copy of the policy to the insured and confirmation of the coverage’s terms and conditions within 60 days of the effective date of the policy.  Keystone did not receive a copy of the policy until February 9, 2005 and had no notice of the “garaging warranty” prior to the theft.

The trial court decided in favor of Keystone and on appeal, the 4th District Court of Appeals (4th DCA) affirmed that decision.  The 4th DCA acknowledged that the theft was covered under the policy and a premium had been paid for that coverage.  Further, the Court reasoned that while an insurer is free to require its insured to warrant or promise to behave in a particular manner, the insured has a duty to inform the insured of this warranty before it can use non-compliance with such warranty as a denial or forfeiture of coverage.

To read the decision:

http://insurancecoverage.typepad.com/files/lloyds-underwriters-at-london-v.-keystone-equipment-finance-corp..pdf

http://money.cnn.com/magazines/moneymag/moneymag_archive/2007/03/01/8400877/index.htm

http://www.bloomberg.com/news/marketsmag/mm_0907_story1.html