As part of our series on “what if,” today I will be discussing “What to do if your house is on fire.” I know some wiseacres are immediately going to say, “Um, Dave, shouldn’t we call 9-1-1?” I would say that you wiseacres are totally correct! The first phone call that you should make if your house is on fire is indeed 9-1-1! Believe it or not, people have had their house on fire, and the first call they made was to their insurance agent! While I certainly appreciate their faith in our ability, putting out real fires is NOT a skill of an insurance agent! Call 9-1-1 (preferably from a cell phone OUTSIDE of your home) and let the professionals deal with it. Saving life is the first priority, saving property is second. After you’ve called 9-1-1, and everybody is safe and accounted for, THEN call your insurance agent. There are several things that we can get started right away. If your house is unlivable, most likely your insurance policy has a provision to cover additional living expenses. In the event of a large-scale loss, your insurance company will probably be able to get you into a hotel room and provide upfront money to cover clothes and other essential items. Your insurance team will immediately swing into action to make sure that you have a place to stay, clothes to wear, and food on the table. The next few days can be a bit tricky. If you have a large fire, you will probably have a bunch of people called “public adjusters” who will camping around your doorstep. They will be trying to get you to sign with them to “help” you adjust your claim. They will claim a percentage of whatever your settlement is (oftentimes 10 percent), and they will try to get you to sign up right away. I recently had one of my insureds have a major fire at their home. They had FOUR public adjusters standing on the sidewalk trying to get their attention while they were trying to salvage some of their family photos. They stay on the sidewalk because they are not allowed to step into your yard uninvited. The public adjusters stayed in front of their house for hours trying to get them to sign the agreement. My advice is, don’t sign ANYTHING regarding settling your claim for a fee for the next three days or so. You will be in such a state of distress that you it is almost impossible to make a rational decision. Literally, wait until things cool down. In very large claims involving commercial property with several million dollars at stake, a public adjuster may be a good person to consult. In the event of a house fire, you along with your insurance agent should be able to handle everything so that you get the maximum settlement possible without having to sign over settlement rights to a third party. The thing to do next is refer to something that you hopefully took care of before, and that is making a list of your belongings. After the claim, the adjuster will have no problem paying for everything that is covered in the policy. There may be certain limits to some things like cash, jewelry, or firearms, but if it relates to your personal property or the structure itself, your adjuster wants to help you get back to where you belong. They will, however, need to be able to justify what they pay. If you had a high-valued entertainment center, remembering the type and features may be difficult. Also, all of the collectibles that you spent years gathering will be hard to replace if you don’t know what you had. Take some time BEFORE the fire, and document everything that you have of significant values, like computers, etc. With modern technology, storing all of your personal property information to the cloud is very, very easy. If you put all of it on a memory stick, you can put it in a safety deposit box, or even store it at your insurance agent’s office if he or she is amenable. It’s just a good idea to have it in a place OTHER than your home. You may have a “fireproof” safe, but many of them don’t stand up to the massive heat associated with a house fire. As you go along, you will remember certain items. It may be handy to carry around a pen and paper, or memo on your cell phone to write things down as you remember them. As far as the structure itself, you have several options. One of the things that many people get worried about in the event of a large fire is the deductible. My advice: don’t worry about it. There are many ways to take care of the deductible in the event of a large loss like a fire. Contractors are often able to find ways to cut costs in a variety of ways that won’t lessen the value of your home and even staying under budget. A good contractor who wants to job will find ways to save you money. Finally, realize that it will take a while to get everything back in order. Having a fire that destroys your home and personal property is very traumatic. Some people seek help from a trusted counselor or clergy member to help walk through the difficult time. Don’t underestimate the personal toll that something like this can have on you and your family. Also, keep your insurance agent on speed dial. He or she can help you understand some of what’s happening during the claim. You may have people approach you offering to “help,” but they may be trying to take advantage of you during a crisis. Let your insurance agent be a resource for you. While I hope you never have to deal with this type of loss, it is my wish that this information will help you to be a little forewarned about what may happen. This post is not meant to replace information provided by an insurance professional. Also, refer to your policy, and/or consult with your insurance professional if you think you may have some gaps in your insurance portfolio. If you have any questions at all about home insurance, please feel free to contact me or my licensed office staff at (661) 946-4224. You can also email at dave@thedaveowens.com.
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AuthorDave Owens, Owner/Agent. I have proudly served in the Insurance Industry for over 20 years. Archives
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