Legal: The Storm Has Passed – Making Damage Claims

With Hurricane Beryl causing incalculable damages, and the likelihood of additional storms in the near future (hurricane season does not end until November 30, 2024), many have asked what they need to do from a legal perspective in terms of filing insurance claims for damages.

Initially – Identify what was damaged.

Once everyone is safe and the storm has passed, you must document everything possible, which includes damage to both the inside and outside of your home or other structure. It is a good idea to keep a log of the destruction identifying specific inventory that what was damaged, how it was damaged (e.g., flood, wind, electric malfunction) and most importantly take a multitude of photos and/or videos of each loss getting as many different viewpoints as possible. Once the location is cleaned up, you will never be able to get those photos and/or videos again, so do it early. Those videos and photos are going to be your best evidence of what items were there, their condition, and their damage.

Although stress and emotions will be very high, try to remember to review as much of your property and possessions as possible to determine everything that was damaged. For example, did your vehicles, boats, ATVs, trees, or other property get damaged besides your home? Did you check on your business and/or your possessions at the office? Do you have property in storage or at someone else’s home that needs to be accounted for? The most common types of damage are roof damage, water damage, structural damage, cosmetic damage, downed trees, landscape damage, damage to your vehicles and recreational vehicles, damage to your electronics, and loss of perishable groceries, so as soon as possible be sure to document all damages BEFORE you begin cleaning up, but only if it is safe to do so.

Next – Identify insurance policies.

There are many insurance policies that may be involved in a mass loss such as damage from a hurricane. Determine what policies may be applicable and put each of them on notice:

1. Homeowners Coverage – Standard homeowners’ coverage does not provide unlimited coverage for hurricane damages. It will provide limited coverage for your home, possibly other buildings on your property, and possessions in the home damaged from a storm (although they typically DO NOT cover flood damage unless there is a separate policy). It may also provide coverage for short term housing and living expenses.  Any damage to your home and possessions from the storm should be reported to the insurance company immediately.

2. Flood Coverage – This coverage is a program underwritten largely by the Federal government, although there are private policies out there. If there were flood waters, contact your flood coverage policy immediately to file a claim.

3. Auto Insurance – Items like weather, flood and hail damage should be covered under your standard collision coverage in your policy (if you maintain such coverage).  Most auto insurers now utilize online portals for claims filing; but you can also call your agent or the claims number on your ID card.

4. Business Insurance – if you own a business or had property at a workplace that was damaged, you can file for property loss on your and/or your employer’s commercial liability policy. If you own a business, you should review your policy to determine if you have coverage for loss of business, short term rental (if you have to move), and damage to equipment in your business. A lot of people have these coverages but never file claims because they don’t know it exists in their policies.

5. Renter’s Insurance – Much like homeowners’ coverage, renters insurance may cover losses for your personal property, short term rental and other damages if you rent rather than own.  You may have purchased this coverage on your own or some landlords carry the coverage for the renter as part of your monthly rent payment. Notify the insurer of the event as soon as possible in order to file a claim.

6. Other insurance – If you have special coverage for items like boats, jewelry, ATVs, etc., document the loss and report it.

Working with Insurers

Customer service with insurance claims is often challenging at best during normal times; so, when mass tragic events occur, most insurers are not prepared to deal with the onslaught of claims. To that end, I recommend having extreme patience and lots of kindness to help you resolve your matter with the insurance company. After all, if you have a business that normally has 10 customers a day, but then one day suddenly 10,000 people show up at your door, service is going to be affected.

That all being said, it’s also important to advocate for your claim(s). Find out who the adjuster is and get on a first name basis with them. Try to communicate as much as possible in written form (email, text, online portal) so there is a documented record.   

Under most circumstances, insurers in Texas have 15 days to either accept or reject a claim, although that can be extended to 30 days for hurricane claims. However, if the insurer needs additional time to investigate, it can request up to 45 additional days. Within 60 days of receiving a properly filed claim that is covered, an insurer must pay the claim. If an insurer fails to timely pay a valid claim, there are statutory penalties that may come into play. 

Getting Help

If you feel your insurer is making false statements, dragging their feet, has denied your claim wrongly, has underpaid your claim or generally has failed to honor the terms of the insurance contract, then you have options.

1. Public Adjusters – There is an industry of public adjusters that can be very helpful in navigating the insurance claim process. In essence, the public adjuster is a trained individual in the field of adjusting insurance claims and becomes your agent to handle the process. Most of these companies get paid by collecting a portion of what you recover in the claim. However, often they are able to recover enough additional monies in a claim to more than justify their fees. Public adjusters, however, are not lawyers and cannot sue insurance companies. Therefore, they tend to push for settlement of claims, potentially at lower rates than you may be entitled to in litigation, but at the same time, they often are able to resolve claims much quicker than in litigation.

Be sure to do your research on your adjuster before hiring one; they often come out of the woodwork after a big catastrophic event, resulting in a lot of people signing a contract quickly due to desperation. Check online reviews and do some basic research on these companies to determine if they are reputable. 

2. Attorneys – There are attorneys that specialize in handling insurance claims; you have likely seen billboards and ads for some of them. Attorneys in this field typically get paid by taking a portion of what they recover, at a higher rate than adjusters (this is called a contingency fee). However, attorneys can file lawsuits and seek penalties (such as statutory penalties) in litigation. Likewise, attorneys’ fees can be recovered from the insurance company in a successful litigation insurance claim lawsuit.

As with adjusters, do your research on the attorney you retain and make sure they have plenty of experience in hurricane claims (as it is a highly specialized type of law). Just because they have a billboard, and a cute radio commercial does not mean they are the best legal counsel for you; check online reviews and testimonials and see how long they have been doing this type of work. Keep in mind, insurance litigation is a slow process, and depending on what county you are in (or whether you are in state or federal court), it may take 2-4 years to fully prosecute a case. The wait may well end up being worth it in the end, but nothing in the litigation realm is quick.

In closing, mass catastrophic events like hurricanes, floods and other similar happenings cause immense damage to so many people, often costing some their lives. I always suggest to keep in mind, as you deal with your damage, that others are in the same (if not worse) boat and some kindheartedness and lots of patience should go a long way. That being said, you pay for insurance and those companies need to be ready to respond when these events do occur. It is easy to get discouraged when filing a claim as you might discover that collecting what you feel you are owed makes you incredibly frustrated (after all, you have been paying your insurance premium all this time). If you feel as though the insurance process is too much to navigate due to denials of coverage or excessive delays or undervaluing your loss, then I strongly recommend that you get professional assistance. Help is out there and can take a whole lot of stress and frustration off your plate.