The term “natural disaster” refers to an event that damages property due to natural causes beyond our control. These include abnormal weather patterns and earthquakes. Due to the unpredictable and difficult nature of natural disasters, it can be difficult to recover losses resulting from property damage. Natural disasters are also known as “Acts of God.”
The following types of events and occurrences are usually classified as “natural disasters” in most insurance policies:
- Severe storms
- Earthquakes
- Lightning strikes
- Tornados and hurricanes
- Floods
What Types of Losses can I Claim for Damages Caused by Natural Disasters?
Depending on your coverage, you may be able to recover losses relating to the following aspects of property:
- Walls and Insulation: Damage to walls caused by winds or earthquakes is sometimes covered.
- Power and Electricity: It is sometimes possible to recover costs associated with electrical repairs.
- Carpets: Floods and other water-related events can cause serious damage to carpets.
- Asbestos: Natural disasters may agitate existing asbestos in ceilings and walls. You may be able to recover costs associated with asbestos removal.
- Mold Damage: Mold commonly results from many natural disasters; you may be able to recover expenses for mold removal treatments.
- Additional Expenses: If the disaster required you to move out of your home, you might be able to recover temporary expenses such as hotel lodging.
The amount of damage you can recover will also depend on your agreement with your insurer. Most policies don’t cover all the damages and costs listed above.
Handling Natural Disaster Insurance Claims
Witnessing the destructive force of Mother Nature during a natural disaster can be traumatic. Hurricanes, tornadoes, earthquakes, floods, volcanic eruptions, and tsunamis can all have devastating effects. In addition to destroying entire communities, devastating public and private property, inflicting horrific life-changing injuries on individuals, and causing large-scale losses of life, these phenomena can leave victims and their loved ones in a state of shock, grief, helplessness, and despair.
Despite the apparent collapse of your world following a natural disaster, you can still pick up the pieces and rebuild your life if you’ve had the foresight to get an insurance policy. You can recover the damages you have sustained on your insured property by filing an insurance claim, allowing you to focus on taking care of your family and getting on with your life.
However, filing a claim for natural disaster insurance can be confusing, especially if the policy contains complicated terms and technical jargon. Our step-by-step process can provide you with all the information that you need if you want to file a natural disaster insurance claim. Here’s what you need to do for a successful natural disaster insurance claim:
- As soon as you learn it is safe to return home, assess the damage you’ve sustained. Photograph your damaged property and maintain a list. You should not throw away any property until the insurance adjuster has reviewed it. If your home cannot be secured, make temporary repairs and move your personal property into storage. In many insurance plans, you can receive reimbursement for the cost of storage units until your home is ready for re-entry.
- Examine your policy carefully, and learn what is covered in terms of clean-up and repairs. Many insurance policies cover carpeting, mold, painting, wall and insulation repairs, rewiring, and electrical work. Generally, earthquake and flood damage are not covered by homeowner’s or renter’s insurance policies. You can add earthquake damage coverage to your home insurance and purchase flood insurance from the National Flood Insurance Program (NFIP) if you need coverage for these natural disasters.
- As a result of the natural disaster, your home may still be habitable, but it may need to be repaired urgently. Consult your insurer about the necessary repairs. Whether you did it yourself or hired someone, keep the receipts for your expenses and include them in your claim.
- If you have had to move out of your house, keep a record of all your expenses, including meals, hotel room charges, transportation, etc. Your home insurance policy may cover some of these costs.
- Because most insurance companies place a time limit on filing claims, you must do so as soon as possible. You should contact your insurance company and provide them with a list of your damaged, destroyed, or lost property. Provide as much information as possible, including the brand name, model, date purchased, and cost. If you think of something that wasn’t on your initial loss list, contact your insurance company and include it. The company may make an additional payment. If your automobile were damaged, it would be covered as part of your automobile insurance and not your home insurance policy.
- Next, your insurance provider will send out an adjuster to survey your damages at no cost. If you wish, you can have an independent contractor review the adjuster’s inspection or go over the inspection report before agreeing to any settlement terms. In many cases, insurance companies make a deliberately low estimate of the damages incurred by the individual or may even deflect the cause of damage to factors that are not insured.
- When an insurance company takes a long time to respond to your claim, contact the claims department to find out if an adjuster has been assigned to your claim. Your contact information and updated address should be provided if you have moved. Engage the services of an insurance claims lawyer to assist you if there has been an unreasonable delay in getting back to you or if you suspect that the insurance company is deliberately stalling to make the statute of limitations run out on your claim.
- Don’t feel pressured to agree to the settlement amount. Ultimately, insurance companies are businesses that aim to minimize their expenditures. If you do not feel like you have been offered your due amount as a settlement, you can attempt to negotiate with the insurer. If this is not possible, you can avoid further agitation by contacting a reputed, qualified insurance claims lawyer, who will negotiate and, if necessary, litigate on your behalf.
- You will probably receive an emergency advance for your immediate needs from your insurance payout. Your personal property and additional living expenses will also be paid directly to you. You and your lienholder may receive payment for structural damage to your home if there is a mortgage on the property.
- Make sure you check the licenses and references of the people working on your property before they start working. Avoid signing any contracts if an adjuster has not yet assessed the damage. Get a written estimate before beginning repairs. The adjuster may ask to see the estimate before the work begins.
- You should not pay the contractor the full amount or sign over the settlement amount upfront. To begin with, pay the contractor a percentage of the total amount and then the remainder after the repairs are completed.
- Contact your insurance company to recover your dues if your contractor finds any damage that was not discovered and accounted for by the adjuster. Consult your insurance claim attorney if you encounter unreasonable resistance.
What Is a “Bad Faith” Insurance Lawsuit?
You can’t sue your insurance company just because they don’t cover natural disaster losses. In any contract, the parties must fully understand the coverage terms of the insurance policy and must consent to these terms in the policy agreement.
On the other hand, it may be possible to sue your insurance company through a “bad faith” lawsuit. When an insurance company denies your claim without justification, you can file a bad faith insurance claim.
When dealing with clients, all insurance companies have a duty to act in good faith. It might be possible to file a bad faith insurance lawsuit if the insurance company acts fraudulently in response to your natural disaster claim.
By proving that an insurance company acted in bad faith when processing your natural disaster claim, you may be able to recover the amount that should have been paid to you. Additionally, you may be able to recover attorney’s fees and court costs.
Should I Hire an Attorney for a Dispute Over Natural Disaster Insurance?
When dealing with the effects of a natural disaster, you may wish to hire an insurance lawyer for advice and assistance. It can be especially complicated when working with an insurance company; however, an attorney can help you file a claim and ensure your rights are not violated. Also, a lawyer can help support your claim in court if a lawsuit is necessary.
