A house fire is one of the most traumatizing things a homeowner can experience. Once the flames are extinguished, you’re left to navigate the destruction of your property, the loss of personal belongings, and the lingering damages caused by soot, smoke, and water. And, on top of all the rebuilding and recovering, you’re also expected to file a homeowner’s insurance claim!
This can seem very overwhelming, and understandably so. Your insurance company will deliberately make the fire loss claims process difficult. They’ll use confusing language, countless documents, and complicated roadblocks to either make you agree to less money or give up entirely.
Don’t let your insurance company bully you out of the settlement you deserve. Read on to learn how to file a successful insurance claim, where you can find extra help, and more about fire loss claims in Wisconsin.
What to Do Immediately After a Fire (First 24 Hours)
After a house fire, you’re probably feeling overwhelmed, anxious, scared, or some combination of the three. And while that’s completely normal (and expected), these strong emotions can make it difficult to make clear decisions in the immediate aftermath of a fire. Here are some dos and don’ts for the first 24 hours:
Do:
Stay Safe & Calm!
Although this may be easier said than done, during a time of fire loss and damage, it’s essential to try to remain calm. The first thing you should do is ensure everyone’s safety. Get everyone to a safe location, and do NOT re-enter the property until it’s been cleared by the fire department or a building inspector. Your home might be unstable and at risk of collapsing.
Review Your ALE (Additional Living Expenses)
In the event that a fire makes your property uninhabitable, one of the first things you have to do is find somewhere to go! Luckily, your insurance policy should include coverage for Additional Living Expenses (learn more below). This will help you understand what, where, and for how long your insurance will pay for you to live somewhere else.
Contact Your Insurance Company (But Don’t Submit a Claim)
Contact your insurance company right away to let them know what happened. Alert them of the incident and give some information, but do not rush to quickly submit a claim. Wait until you have time to gather all the details and necessary evidence, and get quotes. Rushing this part of the process gives your insurer the opportunity to capitalize on your vulnerability.
Don’t:
Don’t Sign Anything Without Reviewing It
Don’t rush into signing repair contracts or cleanup services immediately after a fire! People may try to take advantage of your stress and vulnerability after a tragedy and get you to sign agreements that contain unfavorable terms. To avoid getting scammed, understand the terms before signing any contract.
Avoid Discarding Items
Although it may go against your instincts, avoid discarding any damaged items before the insurance adjuster has had a chance to inspect them. These items serve as evidence and are essential for documenting the severity and extent of the damage. Getting rid of these items prematurely can make it hard to substantiate your claims, thereby delaying the overall process.
Don’t Feel Like You Have to Handle It Alone
Remember: you don’t have to handle the claim process by yourself. The process of filing and negotiating a fire loss claim can be complex and time-consuming, and any mistakes can result in an unfair settlement. Luckily, there are people (like public adjusters) and resources to help you with the claims process. You don’t have to do everything alone.
How to File a Fire Insurance Claim: 10 Important Steps
When it’s finally time for you to file an insurance claim, it’s important to follow the steps below. Failure to do so may result in your insurance cases being delayed, or, in some extreme cases, completely denied.
Step 1: Go Through Your Insurance Policy
Take the time to review and comprehend your homeowner’s insurance policy thoroughly. Familiarize yourself with the specific steps involved in filing a claim and the documentation required at each stage.
If you’re struggling to understand your policy, either reach out to your insurer for clarification or contact a public adjuster. Below are just some of the first questions that need to be answered when reviewing your homeowners’ policy.
Ask Yourself:
Are You Insured? Does Your Policy Cover Damaged Property?
One of the first steps after a fire incident is to determine whether you have homeowners’ insurance coverage that includes protection against fire damage.
Are There Any Limits to Your Coverage?
Understanding the limits of your insurance coverage is essential to managing your expectations during the claims process. Your policy may include coverage limits for different categories, such as personal property, temporary living expenses, or rebuilding costs.
Have You Met All the Conditions in Your Policy?
Insurance policies often include specific conditions that policyholders must meet to ensure coverage for a fire loss claim. These conditions may vary depending on your policy.
Did You Meet Your “Duty of Care”?
Most homeowners’ insurance policies contain a legal obligation known as “duty of care”, which means the policyholder is required to take reasonable care of their property in order to be protected by their insurance. If the fire was caused by neglect, you likely won’t be covered.
Have You Read Your Loss Settlement Clause?
You’ll want to locate your “Loss Settlement Clause” in the “conditions” section of your homeowners’ insurance policy. This will tell you:
- How your insurance provider settles claims.
- Whether your policy pays the Actual Cash Value (ACV) or the Replacement Cost Value (RCV) for damages. (Learn more about the meaning of this below.)
- What will happen if you are underinsured/not covered.
What Are Your “Duties Following a Loss”?
The “Duties Following a Loss” section of your homeowner’s insurance policy explains legal obligations you must follow in the event of a loss.
These duties include your contractual obligations to:
- Take all the necessary steps to protect property against damage.
- Document all the proof (invoices, receipts, etc.) that will be required.
- Contact the police if a crime was committed.
- Promptly notify your insurance company of your loss, and document the details of this communication as well.
Other steps may be required, depending on your policy.
Step 2: Document Your Damages & Take Inventory of Your Personal Property
After a fire incident, it is crucial to document the damage to your property and take inventory of your personal belongings. You’re going to want to:
Take Pictures & Videos
As soon as it is safe to do so, begin documenting the fire damage by taking detailed photographs and videos. Capture the extent of the damage to the structure, individual rooms, and specific items affected by the fire. A public adjuster can help you with this stage of the process to make sure you are documenting the right areas.
Take Detailed Notes
After you’ve taken enough pictures and videos, it’s time to put your pen to paper! Take notes on details surrounding the damages, and record things such as:
- The date, time, and location of the incident
- The extent of the damage (as detailed as possible)
- The cause of the damage
- Witness statements and information (if applicable)
- Damaged inventory list
- Any other relevant information from that day (such as weather conditions)
It’s important to do this as quickly as possible so that everything is still fresh in your mind. You want everything to be as accurate as can be, so there is no room for doubt from your insurance company.
Document Item Loss
While the damage to structures might be your main focus, it’s also important to document any items that have been damaged or destroyed. It may help to use the table below to stay organized.
| Item Name | Location: (Ex: Living Room) | Brand | Model or Serial # | Item Description | Quantity | Item Age | Estimated Value ($) |
Avoid Moving Things
Avoid moving or altering any damaged items until your insurance adjuster has had an opportunity to assess them. Moving items prematurely may inadvertently destroy potential evidence or make it more difficult to determine the extent of the loss. Preserve the scene as much as possible!
Gather Receipts & Proof of Ownership
Unfortunately, your insurance company is not going to just take your word for it when you say you owned certain items, especially if they’re expensive or considered “high value” (such as jewelry or art). You’re going to want to gather receipts, invoices, or warranty documents. Basically, anything you can find that can serve as proof that you owned what you’re trying to claim.
Remember: Before entering your property for documentation, wait for clearance from relevant authorities. Once you have been given the green light to enter, proceed cautiously and prioritize your safety at all times.
Step 3: Secure Your Property
After a fire incident, it is crucial to secure your property to prevent further damage and protect it from potential threats. Here are important steps to follow:
- Secure the area: Once you identify areas of your property that have been destroyed or severely damaged by the fire, rope them off or place barriers to prevent access.
- Board up broken windows or holes: If you have damaged windows, doors, or walls, board up these openings with secure materials, such as sheets of plywood. This will help prevent unauthorized entry, further weather-related damage, or potential vandals or thieves.
- Check on the property: Make regular stops to check on the property’s condition. This will allow you to quickly address emerging issues and will also show your insurance company that you are actively protecting your property from further damage.
Step 5: Repair or Replace Personal Property
When assessing your damaged items or property, you’re going to need to decide whether you want to repair or just fully replace something. Your insurance provider may have certain rules regarding what can be replaced as opposed to salvaged or repaired, so make sure to check your policy. (Information should be located in the area labeled “Pre-Loss Condition”, or under similar wording.)
Be careful when making decisions, because this part of the process is known for depleting your limited claim dollars. For example, you may try to restore something to its pre-loss condition only to discover it’s impossible, thereby wasting time and money.
When deciding whether to replace or repair items, ask yourself these questions:
- Is there smoke damage?
- Is there burn damage that is causing the item not to work properly?
- Is any part of the item salvageable?
- Has the item been in contact with toxic chemicals?
- Does the item still function the same, even when cleaned?
- Will this item still last after being repaired?
- Will this item last longer if it is replaced?
- Is this item truly needed, or can it be replaced or thrown out?
Step 6: Track Additional Living Expenses
Most homeowners’ insurance policies provide coverage for Additional Living Expenses (ALE). Additional Living Expenses cover the costs associated with living away from your home during the time it takes to repair or rebuild it after a disaster, such as a fire.
This coverage typically includes:
- Temporary housing (i.e., hotel bills, rent)
- Meals
- Transportation
- Storage
- Utility fees
- Pet boarding
- Mileage
- Etc.
Step 7: Ask For an Advance on Your Claim (If Needed)
You may need immediate funds to cover the costs of temporary housing, meals, and other essential expenses. And although these things are often covered by ALE, that money isn’t always paid out right away. In such instances, requesting an advance on your claim allows you to access a portion of the claim money before the final settlement, providing financial support when you actually need it the most.
An advance on your claim is typically a partial payment based on an estimate of the total claim amount. While it may not cover the entirety of your losses, it can help alleviate immediate financial burdens. This advance payment can be used to address urgent needs, such as securing temporary housing, purchasing essential items, or covering initial expenses.
Remember: There may also be unforeseen expenses to cover during this time, such as storage fees for preserving salvaged items or expenses related to temporary repairs.
Step 8: Understand if You Have ACV or RCV
When it comes to insuring your property and belongings, there are two main types of coverage available: actual cash value (ACV insurance) and replacement cost value (RCV insurance). Although the two are often used interchangeably, they’re not the same thing, making it important to know what type of coverage you actually have.
What is Actual Cash Value (ACV)?
Actual Cash Value (ACV) is the amount your property or personal items cost (before the loss), minus the decrease in value due to age or use. This usually means you end up with less than what your property or items are worth because it doesn’t include the cost of repairs or replacements.
Here’s an example (shown above): Let’s say you bought a couch 10 years ago for $2,000. Over the years, the couch depreciated due to wear and tear caused by daily use. Just before it was destroyed in a fire, it was estimated to be worth around $1,500.
In this instance, if your insurance policy used the ACV method, they will only pay you out $1,500 to replace the actual cash value of the couch at the time of the incident (minus the cost of your insurance deductible).
What is Replacement Cost Value (RCV)?
Replacement Cost Value (RCV) refers to the estimated cost to repair, replace, or rebuild damaged items to their pre-loss condition using new or similar materials. The nice part about RCV is that this type of insurance coverage doesn’t account for any depreciation.
Let’s use the couch example again (shown above): Let’s say you bought a couch 10 years ago for $2,000. Over time, it experienced the usual wear and tear and was estimated to be worth about $1,500 when it was destroyed in a fire.
With the RCV method, your insurance company will pay you $2,000 to replace the couch with a brand new one (minus the cost of your deductible), essentially restoring your couch to its original state before the fire.
Remember: Insurance companies will often try to undervalue your property damage by sending in claim adjusters who will exaggerate the depreciation of damaged items or property, especially when it comes to ACV coverage. By doing so, they’re able to give you less than you’re owed.
Step 9: Get Quotes for Repairs & Debris Removal
Before rushing to get repairs made and debris removed, you’re going to want to get quotes from several contractors. You are NOT required to use the contractor provided by your insurance company (although they likely will try to suggest low-quality contractors that cost them less).
Request a written estimate from contractors that clearly outlines the scope of work, materials used, and payment. This will first have to be approved by your insurance company in order to avoid any disputes down the line.
The same goes for debris removal. In most cases, the expense of clearing the debris is either completely covered by your homeowner’s insurance policy or covered up to a certain limit. That means if your policy has a 10% limit on debris removal and the claim was for $50,000 in total damages, the insurance company will therefore cover up to $5,000 in debris cleanup charges.
Remember: Before disposing of any damaged items, consult with your insurance company or public adjuster and obtain their approval or instructions. They may require you to keep certain items for further evaluation.
Step 10: Consider Hiring a Public Adjuster
The fire claims process can be a lengthy and confusing journey, and even after all the hard work you put in, it can still be denied. If you want extra help, consider meeting with a public adjuster—they’re insurance professionals who understand all the complicated ins and outs of homeowners’ insurance policies, and will help you get the settlement you deserve.
If you decide you do want to work with a public adjuster (such as Fortitude Public Adjusters), then you can expect them to:
- Accurately assess the damage
- Handle all the documentation (ie, photographs and videos)
- Submit an in-depth, comprehensive claim
- Negotiate directly with your insurance company
- Maximize your settlement payout (typically by 30% or more)
Filing a Fire Loss Claim? Contact Fortitude Today
Did you know that fire claims are one of the most expensive types of homeowners’ claims? (They ring in at an average of $83,991 per claim!) Insurance companies know this, and will try to save money by paying you as little as possible—even if you’re entitled to it.
At Fortitude Public Adjuster, we won’t settle for whatever small amount your insurance company offers; we’ll fight on your behalf in order to get you the settlement you rightfully deserve. We typically get our clients 4 times more money than they would normally get if they handled the claim themselves. To get started, contact us for a free estimate.
