How to recover financial from a natural disaster.
First things first
Take these steps immediately after a disaster strikes:
1. Make sure your residence is safe to enter. If it is, remove any valuables to a safe place.
2. Be aware of potential hazards - avoid these areas until you have a chance to stabilize them. Make temporary repairs to prevent further damage, such as patching a roof, boarding up windows, or tearing down a damaged chimney. Keep receipts of repairs, since most insurance companies will pay for them. The Red Cross of other voluntary organizations may assist in helping you obtain materials to make temporary home repairs after a disaster.
3. Notify your insurance company of your loss and get advice about making emergency repairs. Ask the insurance company if it will pay for living expenses, such as a motel, food, and laundry, if you are unable to live in your home. It may give you a check up front. Also find out if this payment for living expenses will reduce the amount you ultimately receive for damage to your property or possessions.
Conduct an inventory
If you have insurance for renters or homeowners, you'll want to make sure the insurance company pays you fairly for all covered property and possessions damaged or destroyed in the disaster. To do that, you'll need to prove that a loss took place and confirm the value of that loss. The following steps will help you give the company an accurate list of the damage:
1.Make a preliminary list of damaged property and the degree of damage to each item. If possible, photograph or videotape the damage.
2. Check this list against any list of property and possessions you may have made before the disaster occurred.
3. If you don't have a pre-disaster inventory list, make one from observation and memory as soon as possible. To jog your memory for items you had before the disaster, you might walk the aisles of your local discount or department store or leaf through a catalog or the classified ads section of your local newspaper.
4. Review any surviving photographs or videos taken in and around your home.
5. Ask friends and family for photographs or videotapes they may have taken of your home.
6. Draw floor plans and sketches of your home's interior. Repeat this process in two or three weeks. You're likely to remember additional items.
7. Collect all available receipts, canceled checks, credit card statements, and invoices to prove the value of lost possessions, including big-ticket items such as antiques or jewelry.
8. Don't consider your list to be final. You may remember additional items later.
Reconstruct lost records
Records are often lost or destroyed in a disaster. But you may need to reconstruct some of those records if you plan to file an insurance claim, take a tax deduction for your loss, or apply for government aid. Here are some tips for recreating financial records and determining the value of your possessions:
1. Look through catalogs or want ads to establish a fair value for your damaged or destroyed items. Insurance for renters or homeowners may pay only the actual cash value for your possessions (replacement cost discounted for age or use).
2. Use a Blue Book (available at banks) or consult a car dealer to determine to current value of vehicles.
3. Get a copy of the escrow papers for your home from your real estate agent, the title company, the escrow company, or the bank that handled the purchase.
4. Go to your county assessor for property tax records to determine the value of the land versus the value of the building.
5. Contact lenders and contractors to determine the value of home improvements you have made.
6. Check court records for the probate values of property you may have inherited.
7. File Form 4506, Request for Copy or Transcript of Tax Form, with the IRS to obtain copies of previous federal income tax returns. A small fee may be charged for this service.
Notify creditors and Employers
You may not be able to get to work because of a disaster. Be sure to notify your employer.
1. Notify creditors as soon as possible about lost bills or difficulties in paying bills. Explain the situation and try to negotiate an agreement to reduce payments or spread them out over a longer period. Most creditors will probably be willing to do this, especially if they have other customers affected by the same disaster.
2. Notify the utility company if your residence is unlivable or has been destroyed so they can stop billing immediately. Often, a utility company will transfer service to a new address and waive initial connection charges.
File an insurance claim
Whether you rent or own, the following tips may be helpful:
1. Gather together all policy numbers and insurance company telephone numbers.
2. Find out how the company wants to process claims. In the event of a widespread disaster, the company may set up special procedures and send in extra personnel and claims adjusters.
3. File claims as promptly as possible. Claims generally are settled in the order received, although the most severe cases may receive the highest priority.
4. Erect an identifying sign on your property if destruction is widespread. Because it can be difficult for insurance companies to identify your property, a sign with your name, street number, insurance company, and a way for the company to reach you can speed up your claim.
5. File a claim even if your home is not specifically covered for the type of disaster that occurred. For example, a standard policy for homeowners will not cover structural damage caused by an earthquake - but it often will cover fire, water, and other damage resulting from an earthquake.
Work with claims adjusters
If losses are small, you only may be required to provide the insurance company with a simple written estimate for the cost of repairs or replacement. More extensive losses usually are handled by a claims adjuster. If that's the case, the following suggestions can help ensure that the adjuster's estimate of damages is complete and accurate:
1. Provide the adjuster with your list of damages, but note in writing that it's only a partial list. You may remember more later.
2. Fully explain all losses and be sure the explanations are written down by either you or the adjuster.
3. Take notes of all conversations with adjusters and follow up with letters to the insurance company confirming the conversations. This increases the chances for getting a fair settlement, but it may also delay a settlement.
4. Compare notes with neighbors. What are their adjusters saying? Remember policies and coverage vary.
These suggestions will cost you more and may cause a settlement delay:
5. Bring in additional adjusters if you're not satisfied with initial damage estimates. If necessary, hire a structural engineer.
6. Consider using an independent claims adjuster if it is a special situation. These professionals can spot claims that homeowners might overlook, especially if the claim is complex or involves a lot of money. Generally, they charge 10% of a settlement. Use the same care and caution in hiring a claims adjuster as you would in choosing any other contractor.
