Whether you live in a single-family home, apartment, condo, manufactured house, or any other type of dwelling, a severe storm, like a hurricane, can cause extreme damage to your property. Communities often face millions, if not billions, of dollars in repairs following a hurricane. The cleanup and recovery efforts after a hurricane can take months or years, but when residents have the right insurance coverage, it can aid in speeding up the process. Read on to learn how insurance claims facilitate community rebuilding after a storm and why it's important to have proper insurance coverage.
What Is an Insurance Claim?
An insurance claim is the process of filing a request with your insurance provider to receive compensation for damages covered in your insurance policy. Your homeowner's insurance policy may cover costs associated with wind damage, but most homeowner's policies don't cover flood damage. To receive coverage for flood damage, you'll need to obtain a separate flood insurance policy.
When you file an insurance claim, your insurance company reviews your request and offers you compensation based on your policy and the claim filed. Once an amount is agreed upon, the insurance company will process a payout allowing you to start making necessary repairs.
In most cases, a deductible, or money out of pocket, will need to be paid before an insurance company will issue a payout. The deductible amount is set when an insurance contract is drawn up and agreed upon by the company and the client. A homeowner's insurance deductible is usually between $500 and $2,000 but can be more or less depending on the company used and what you felt was best for you financially when you purchased the policy. If a file is claimed for more than one policy, such as homeowner's insurance and flood insurance, a deductible must be paid on both policies.
Making an Insurance Claim
The first step in making an insurance claim is to gather information and documentation. Your insurance provider will need to know your homeowner's insurance policy number and the policy numbers for any other types of insurance you plan to make a claim for. Evidence of the damages in the form of photographs or videos will need to be provided to your insurance company when filing the claim. Receipts or proof of purchase for items needing to be replaced that were lost or damaged in the storm will also need to be provided.
Once this information is acquired, the insurance agent can be contacted and your claim can be filed. The more information provided to your insurance agent during this process, the better your chances of getting your claim approved will be. Be prepared to provide additional information that may be requested by your insurance provider throughout this process. Be sure to keep notes about your claim that include the date and time you contacted your insurance company, who you spoke with, and what you discussed. This data can help you track the timeline and remember the details you discuss or information you may need to gather.
It can take time to get your insurance claim approved and receive a payout. While it's understandable that this can be frustrating, it's crucial to remain professional when dealing with your insurance provider. Keep in mind that you can appeal the insurance company's offer if you don't agree with it, but doing so will increase the payout timeline.
Using Your Insurance Payout
When you settle your claim, your insurance company will provide your payout. The amount you receive will vary depending on the extent of damages, your insurance contract, and the proof you have to strengthen your claim. With your insurance payout, you can begin to repair your property. The insurance money is yours to use how you see fit but keep in mind, if you have a mortgage, your lender may require you to make repairs that restore your home to its original condition first. You can also use the payout to pay off your mortgage if you choose.
Using your insurance payout to make repairs or rebuild your home is often the best option for your community. Leaving your home in disrepair or uninhabitable can lower the value of other homes in your community. Additionally, leaving your property in damaged condition can be unsafe, and pose as a danger to everyone in your neighborhood.
Speeding Up Recovery After a Storm
The sooner you file your insurance claim after a storm, the sooner you'll receive your payout. This can lead to a faster facilitation of rebuilding and restoring your community. Without the proper insurance coverage, it can take much longer to make repairs to a damaged home because you'll have to rely on other aid or your own income. Flood damage can be extensive and cost thousands of dollars to repair. It's vital to go over your insurance coverage before a storm to ensure you're protected. A new flood insurance policy takes at least 30 days to go into effect.
With your insurance payout, you can begin to make repairs immediately. You'll have the money you need to purchase materials and hire contractors to get the job done. When everyone in your community has the proper insurance coverage, it can make rebuilding and recovery efforts go smoothly and quickly.
Rebuilding Your Community
Rebuilding your community after a storm poses many challenges. Recovery efforts after a hurricane typically take more than a year, leaving residents vulnerable and displaced. However, having the right insurance coverage can ensure people in your community can get the money they need to repair or rebuild their homes as soon as possible. Insurance claims facilitate community rebuilding after a storm by providing the funds that make it possible to repair damages quickly. Waiting for funds from other sources can extend the time it takes to get your community in order, making insurance a necessary part of homeownership.
Insurance for your home protects you and your family financially and can ensure you're not left without a place to live after a storm. With the right insurance coverage, your community can recover faster. Make sure you have the insurance coverage you need so not only you but your community doesn't suffer after a hurricane.
