AFTER HURRICANE HARVEY: TIPS FOR FILING AN INSURANCE CLAIM
Fewer than one-sixth of homes in Texas’ Harris County have flood insurance policies
Hurricane Harvey is projected to cause $5 billion to $10 billion in property damage in Texas, and that means tens of thousands of insurance claims.
Unfortunately, standard homeowners’ and renters’ insurance policies often cover wind damage but not groundwater flooding. That requires separate coverage from the National Flood Insurance Program or a private insurance company.
The Federal Emergency Management Agency (FEMA) also offers grants to victims, but “this amount is often much less than what is needed to recover,” FEMA says.
The region also may be woefully under-insured, according to a report from riskconsulting firm Aon. As of April, fewer than onesixth of homes in Harris County, Texas, whose county seat is Houston, currently have active National Flood Insurance Program policies.
The county has about 1.8 million housing units.
“Similar take-up rates are found in neighboring counties, though the rate drops off the further inland from the immediate coastline,” the report said. “Based on these statistics, it is expected that a large portion of the overall economic damage caused by flooding will not be covered by insurance.”
Here are some tips for Texas residents affected by the storm:
Contact your insurance company as soon as possible to report the claim. Insurers typically visit the most severely damaged areas first, so be prepared to provide an accurate description of any damages, the Insurance Information Institute
“A large portion of the overall economic damage caused by flooding will not be covered by insurance.” Report from risk-consulting firm Aon
(III) says. Make sure to get a claim number and write it down since it’s the quickest and easiest way for insurance companies to find your file, according to the Consumer Federation of America (CFA).
Ask the company when you can expect to be contacted by an insurance adjuster.
It could be anywhere from a week to five to six months, depending on the extent of the claim, according to HouseLogic, a website operated by the National Association of Realtors. Document your losses with pictures and video, if possible, and include a list of damaged personal items, says John Salter, certified financial planner at Evensky & Katz in Lubbock, Texas. Include the date of purchase and approximate value of any damaged items and collect receipts, III says.
Keep good records of anything you
spend to make immediate repairs to secure your home, as well as receipts for hotels and meals if you can’t return home right away, CFA says Check with your insurance company before discarding damaged items. You typically need to show them to your adjuster, according to III. but if your municipality requires you to discard them for safety reasons, take photographs to help with claims.
Keep a claim diary. Start a notebook with contact information of the people you deal with from your insurance company. Make a list of everyone you speak to and note the date, time and issues discussed, CFA says.
Sign up for text alerts.
Many insurance companies use SMS/text alerts to notify you of the status of your claim, III says. You’ll get messages when you first report your claim, when your estimate is available and when a payment has been sent.