Hurricane Claims
It is no secret that hurricanes are a fact of life in south Louisiana, and we all know how devastating they can be when one impacts your life and causes extensive damage to your property. Just when you expect the insurance company to be there for you, you find that they just delay, underpay, or even deny your claim – adding to the existing misery. LET US HELP!
The Law Office of Mark W. Smith & Associates has extensive experience in hurricane damage claims and knows how to get results. We have recovered tens of millions of dollars for our clients. We have strong relationships with local adjusters who know this area and are here to assist. Our attorneys and staff understand the law, can prepare your Proof of Loss, and help you gather the necessary documentation to prove your claim. LET US HELP!
WHAT CAN YOU DO NOW… BEFORE A HURRICANE STRIKES?
- BE PREPARED: It is crucial that you have a copy of your insurance policy stored safely. This comprehensive document, usually sent to you via email and spanning 30-plus pages, is your key to understanding your entitlements. Do not mistake the Declarations Page as being your policy. That document only shows what you paid and your coverage limits and, importantly, your deductible. You must have access to the full policy. As one of our adjusters, Tommy Drago with 1st Choice Public Adjusters reminds us, “The Money is in the Policy – everything you are entitled to from your insurance company can be found in that document.”
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UNDERSTAND THE DIFFERENCE BETWEEN RCV AND ACV: Understanding the difference between RCV (Replacement
Cost Value) and ACV (Actual Cost Value) is extremely important. Most
policies, but not all, are RCV policies.
An RCV policy will pay you for the full cost to repair or replace your damaged property regardless of how old it is. However, it only pays you that full value after the repairs are completed. During the initial adjusting phase of your claim, you are only entitled to the ACV or the actual cash value of your damages.
Actual Cash Value is the amount to repair or replace the damaged item LESS its depreciation. For example, a 10-year-old roof that will cost $25,000.00 to replace brand new may be depreciated by $10,000.00 due to its age. This is called the recoverable depreciation. Your insurance company would only have to pay you $15,000.00 initially. After you have spent the full $25,000.00 to replace the roof, only then will you be paid the additional $10,000.00 in recoverable depreciation from your insurer. As you can imagine, this can cause a huge cash flow problem for an insured.
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TAKE PICTURES: Take
pictures of your entire house, both interior and exterior, especially of any
repairs you may have done since the last storm.
- EXTERIOR ROOF AND DWELLING: Take pictures of your roof and dwelling from all four sides, starting with the front, then right, then rear and then left. This is the same order that adjusters use and if you follow that pattern, it will make it easier for them when looking at your evidence.
- EXTERIOR WINDOWS AND DOORS: Take close-up pictures of your windows, showing that there was no damage before the storm. If you do receive damage, this becomes crucial evidence and makes it harder for them to deny your claim.
- WEATHER STRIPPING: Make sure all doors have rubber weather stripping in place and take pictures to show that it was not torn or ripped. If the wind should blow in your doors or you get water through them, this evidence will show that your doors are secure and in good shape. Without this information, the insurance company’s adjuster will blame the water on wear and tear or poor maintenance.
- INTERIOR ROOMS: Take pictures of each room and ensure that the ceiling, walls, fixtures, and flooring can easily be seen. Note the room so they can easily be shown and recognized, if necessary. This has the dual purpose of proving the type of materials used in the house as well as helping you recall all the personal items that were there at the time.
- INTERIOR DOORS AND WINDOWS: Take pictures of doors and windows to show that there was no water damage prior to the incident.
- INTERIOR KITCHEN and BATH CABINETS: Take pictures of kitchen and bath cabinets and countertops, showing both the style and quantity. In most cases cabinets are considered a set and can generally be replaced as such (unless your policy states otherwise) so having photos of both the upper and lower cabinetry is very important.
- PERSONAL PROPERTY: Take pictures of all furniture, appliances, televisions etc. and categorize all receipts. Insurance companies will generally ask for receipts, so it is a good idea to keep those organized.
WHAT SHOULD YOU DO AFTER THE STORM
- CALL YOUR INSURANCE COMPANY: After checking on family and friends to make sure they are safe, contact your insurance company to start the claim process and provide your Proof of Loss (POL). You will need to provide your policy number and be prepared to write down your claim number. You will want to get that in as soon as possible and most insurance companies have 30 days from the date the POL is submitted to make a coverage decision.
- MITIGATE DAMAGES: Take the necessary steps to mitigate or stop further damage from occurring (i.e., tarps on the roof, boarding up broken doors or windows, etc.)
- KEEP ALL RECEIPTS: Keep all receipts for work done to repair or mitigate your damages. If you pay in cash, get a cash signed by the contractor or worker that includes the date, the contractor’s name and address, the amount paid and what work was done. In the case of evacuation, keep all receipts including driving mileage, gas receipts, hotel, food, clothing etc.
- TAKE PICTURES. Start your pictures of damages, and do not throw out anything that you want an insurance company’s adjuster to see, especially cabinets.
- ADDITIONAL LIVING EXPENSES: If you are not able to stay in your home while the restoration is being done, check to see if your policy allows for Additional Living Expenses (ALE). Read the policy in detail and follow the instructions completely. Should you have any questions on this, contact our office and we will be happy to do a policy review for you.
- WATER MITIGATION: Watch out for scam artists! After Ida and Laura, hundreds of out-of-state tarping and mitigation companies descended on us making wild and untrue promises. Many hurricane victims were told that they would not have to pay a dime for these services but that the insurance company would pay the tarp and mitigation companies directly. Based on these promises, many homeowners signed contracts without reading or understanding them. These promises generally turned out to be lies. After these companies’ outrageous and in some cases fraudulent invoices were denied by the insurance company, they sued the homeowners for payment. Before signing up with one of these scamsters, ask for a written estimate and then read the contract very carefully. If the verbal promises do not match what the written agreement says, DO NOT SIGN IT!
- YOUR COVERAGE DECISION: You will generally receive an email with the coverage decision and a check from your insurance company within 30 days after the initial inspection. It is important to take note of the date you first reported the claim and when you received the adjuster’s report and your first check. If you are not satisfied with the determination, you should contact an experienced hurricane claims attorney – IT MAKE A HUGE DIFFRENCE! Studies show that using a skilled hurricane and or property damages team of professionals can increase the amount of dollars paid to you by your insurance carrier by over ten times! Remember you do not have to accept as final the first check they send you. You can spend that money on repairs and still seek more funds. The initial check is not necessarily the final check, and an experienced hurricane claim attorney can assist you with this claim.
We want to thank Tommy Drago with 1st Choice Public Adjusters for his contribution to this article and we hope you will contact the Law Offices of Mark W. Smith & Associates should you need our services with your property damage claim.
