5 Steps to Working with Insurance After a Disaster

Step 1: Contact homeowners insurance company

After you and your family are safe, call your insurance company to report the damage and file a claim as soon as possible. They may be able to help with emergency costs right away.

While you’re on the phone, ask your insurance company what types of coverage you have:

• Extended replacement cost coverage helps if repairs cost more than your policy covers.
• Replacement cost coverage pays to fix or replace your home and belongings, up to your coverage limit, at today’s prices.
• Actual cash value coverage pays what your home and items are worth now, after wear and tear.

Next step

Step 2: Review your insurance coverage

It’s important to understand what your insurance covers — and what it doesn’t. This helps you avoid surprises when you file a claim.

Next step

Step 3: Prevent more damage

Repairing or rebuilding your home after a natural disaster can take time. While you wait, short-term fixes can prevent more damage. This might mean covering damaged areas with a tarp or removing water-damaged items from your home. Your insurance company can help you figure out where to start.

Watch out for mold

Mold can be incredibly harmful to both your health and your property. To reduce this risk after a disaster, take action as soon as possible.

• Dry out any affected areas quickly and thoroughly to prevent moisture buildup.
• For more detailed information on managing mold, check reliable resources for additional guidance.

Next step

Step 4: Prepare for the insurance adjuster

Your insurance company may send out an adjuster — a person who will look at the damage and decide how much money the company should pay.

Although it’s OK to make small repairs to prevent further damage, hold off on larger repairs until the adjuster sees your home and what repairs are needed.

Before the adjuster appointment, make a list of what’s damaged and gather receipts for any repairs you’ve already made.

When the adjuster visits, write down everything that happens. Stay in touch with the adjuster and keep records of your conversations.

Keep notes about:

• Missed appointments
• Calls, emails, or texts that weren’t returned
• What you discussed
• Any repair advice (get it in writing)

Make copies of:

• All papers the adjuster gives you
• Your list of lost or damaged items
• Any written approval for repairs

You might not need all this but having it ready can be helpful — especially if your adjuster changes or if there are delays.

Next step

Step 5: Get your payout and start rebuilding

Your insurance payout depends on your policy. It may cover some or all repair costs to rebuild your home or — in some cases — pay off your mortgage if you want.

You may get a partial payment first to help with urgent repairs, temporary fixes, or replacing personal items. To get back to normal faster, take these steps:

Make a plan with your mortgage company

Work with your mortgage servicer to create a repair plan. You don’t have to pay off your mortgage just because your insurance payout is large — unless your home can’t be fixed or rebuilt.

You may be able to pause or reduce your mortgage payments for a period of time if you can’t afford your regular payments. This is called a forbearance.

Speed up the payout process

Your insurance check will have both your name and your mortgage servicer’s name on it. That means you’ll both need to sign it before you can use the money. To avoid delays:

• Call the mortgage company right after you file your claim.
• Find out what’s needed to get the check signed and the money released.
• Make sure your contact information — including address and phone numbers — is up to date.

Track repairs and request payments

Major repairs are often paid for in stages, through what’s called an escrow account. Your mortgage company holds the money and releases it as work is finished and inspected.

Don’t wait for them to check on the work. Keep track of the repairs yourself and let your servicer know when each step is done. This helps move things along and gets you back into your home sooner.