www.hudexchange.info/programs/housing-counseling/housing-counseling-disaster-recovery-toolkit
Checklist: Counseling on Insurance Claims
After a disaster, homeowners and tenants may need guidance on how to file the following types of insurance claims:
Homeowners Insurance. Homeowners insurance covers damage to your home and possessions, liability if
someone is injured on your property, and living expenses if you need to relocate while your home is
repaired.
Flood Insurance. Flood insurance covers damage to homes related to flooding. Homeowners insurance
does not cover damage related to flooding, so flood insurance must have been purchased separately by an
insurance company participating in the National Flood Insurance Program (NFIP).
Renters Insurance. Renters insurance covers your possessions, liability costs if someone is injured on your
property, and additional living expenses if you need to relocate.
Your clients may also ask about automobile, health, and life insurance. However, this checklist focuses only on
homeowners, flood, and renters insurance. Use this checklist to walk clients through the steps needed to
complete the claims process. Take notes in the notes section and complete a plan for next steps when you
complete this discussion.
NOTES
REVIEW THE STEPS IN THE INSURANCE
CLAIMS PROCESS
Walk through the three key steps in the insurance claims process.
The insurance claims process has three primary steps. It is important to understand them
before you get started so that you are prepared to go through the process efficiently.
Step 1: Review your policy and contact your agent.
Immediately contact your insurance
agent after your home is damaged. When speaking with your insurance agent, be prepared
to provide your contact information, insurance policy number, mortgage lender’s name, and
the date and time of your loss. If you don’t have a copy of your policy, call your insurance
company and ask for one, or see if it is available through the insurance company’s website.
Confirm your understanding of the policy
. You will want to be familiar with your
policy so you know what is covered, how much coverage you have, and any
limitations or deductibles in your policy. Ask your agent any questions you have
about coverage.
Document all communications
. Document all communications with your
insurance agent and adjuster. This includes maintaining a log of phone
conversations, copying letters, and saving emails.
Schedule an appointment with the adjuster
. Once you file a claim, an adjuster
will inspect the damage to your property and make an assessment that is used to
determine the amount you should receive for your claim. Depending on the
company your policy is with, and the extent of damage caused by the disaster, your
adjuster may be an employee of the company or work for an independent firm.
www.hudexchange.info/programs/housing-counseling/housing-counseling-disaster-recovery-toolkit
NOTES
Step 2: Work with your adjuster
. An adjuster will inspect your property to assess the
damage to your home and possessions. If you file claims for different types of insurance
(homeowners, automobile, flood, etc.) you may have multiple adjusters. These are the key
steps:
Document your losses
. You should be prepared to provide the adjuster with a
copy of your documented losses. Document losses by taking pictures and listing
damages to your home and possessions. Your list should include item names, serial
numbers, and values. Do not throw anything away until it is documented by the
adjuster.
Prevent further damage
. Prevent further damage by temporarily tarping damaged
roofs, covering broken windows with boards, cleaning up standing water, and drying
out furniture and clothing. Consult with your adjuster before signing any agreements
with contractors to provide cleanup or repair services.
Identify next steps
. Before leaving, the adjuster should provide you with their
contact information and next steps.
For additional guidance
on how to work with adjusters see Prepare to Work With Adjusters
below.
Step 3: Complete the claims process
. After a disaster, the claims process can be lengthy.
Be responsive to requests from the agent and adjuster, and review all communications from
them to ensure that they are consistent with your expectations.
Document any additional damages
. If you identify additional damages, document
the damage and let the adjuster know.
Check policy language
. Ask to see specific contract language if the adjuster says
your policy doesn’t cover certain damage.
Seek second opinions
. If you disagree with your adjuster’s claim, contact your
insurance agent to discuss the matter. It may be necessary to hire a separate
appraiser to have an additional assessment.
PREPARE TO WORK WITH ADJUSTERS
Your client may need additional guidance on how to work with the insurance adjuster. Cover
these tips for working effectively with adjusters.
Manage the timeline
. After filing your claim, ask your agent to provide the
estimated timeframe for when the adjuster will arrive to assess damage to your
property.
Be prepared to work with multiple adjusters
. Depending on your policies and the
damage to your home, you may have to file multiple claims and work with multiple
adjusters. For example, you may need to file a separate claim and work with a
separate adjuster for damage to your home from wind or flooding, and damage to
your automobile.
Verify the adjuster’s identity
. When your adjuster arrives, ask them to provide
their company identification card and driver’s license to verify their identity. The
adjuster may be an employee with the company or an independent contractor. If you
are unsure of the adjuster’s identity, you can contact your insurance company to
verify.
Be prepared to explain damages and coverage
. Be prepared to provide
additional details and documentation related to your claim. Have your insurance
policy available to explain why damages should be covered.
www.hudexchange.info/programs/housing-counseling/housing-counseling-disaster-recovery-toolkit
NOTES
GET ANSWERS TO YOUR QUESTIONS
Give your client time to ask their questions about the insurance process. Address these
common questions.
I lost my policy paperwork. What should I do?
Contact your insurance company
to request a copy. You may be able to access this paperwork electronically through
a portal on your insurance company’s website.
How do I know what my insurance policy covers?
You should review your
insurance policy if you are unsure of what your policy actually covers. The typical
homeowners’ insurance policy covers structural damage to your home, damage to
your personal property, and liability in the event that someone is injured on your
property. Some policies have different limits and deductibles based on the type of
disaster, and standard homeowners insurance policies do not cover flooding. If you
have multiple insurance policies, you should file a claim with each.
How long should I expect the claims process to take?
After a disaster, several
variables may affect the length of time needed to complete the claims process,
including the number of affected properties, obstructions to accessing the property,
the extent of damage to your property, and timelines indicated in your insurance
policy. Your insurance policy should indicate, in writing, within how many days they
must begin investigating your claim and when the process should be complete.
Depending on the disaster, insurance companies may be allowed extra time to
complete the claims process.
My insurance won’t cover damage caused by a flood. What should I do?
Most
standard policies do not cover losses resulting from flooding. To cover flood
damage, homeowners must purchase flood insurance to supplement the
homeowners insurance policy. FEMA and the Small Business Administration make
grants and loans available to cover flood damage in some cases.
Is the process for filing a flood insurance claim different from homeowners
insurance?
The steps for filing a flood insurance claim are very similar to the steps
highlighted in this primer. For more information on flood insurance, see Filing a
claim With NFIP and NFIP Claims Handbook.
Where can I go for more information about completing the insurance claims
process?
See Settling Insurance Claims After a Disaster
, from the Insurance
Information Institute, for details about completing this process.
Will I receive a reimbursement for temporary relocation?
Depending on your
policy and damage to your home, you may receive a reimbursement for temporary
relocation while your home is being repaired. Review your policy to determine if
your policy covers temporary relocation. Be prepared to negotiate with your
insurance company. Keep any receipts for costs you incur for relocation.
PLAN YOUR NEXT STEPS
Make sure your client leaves the meeting with a list of action steps they will take to follow
through on their insurance claims.
Based on the information reviewed above, consider your next steps:
Get additional information, if necessary.
See the list of additional resources at
the end of this checklist.
Make a list of action steps.
Consider the calls you need to make, the information
you need to collect, and the questions you want to ask.
www.hudexchange.info/programs/housing-counseling/housing-counseling-disaster-recovery-toolkit
Acknowledgments and Additional Resources
This checklist was adapted based on the following resources:
Post-Disaster Insurance Guide – Oklahoma Insurance Department
Document and Insure Your Property – FEMA
Settling Insurance Claims After a Disaster – Insurance Information Institute
Six Steps in Making an Insurance Claim – University of Florida
Claims Tips – United Policyholders
The Disaster Claims Process – National Association of Insurance Commissioners
The National Flood Insurance Program (NFIP)
Filing a Claim With NFIP and NFIP Claims Handbook
Homeownership: Are You Ready? - American Institute of CPAs 360 Degrees of Financial Literacy
Navigating the Road to Housing Recovery – NeighborWorks
