Advice for Homeowners

Every year, thousands of Americans contend with natural disasters—hurricanes, fires, tornados, floods, earthquakes and even ice storms. Homeowners can be overwhelmed by the many decisions which must be made in the aftermath of these tragedies. While loss of life and property cannot be reversed, cautious and methodical action can prevent adding to the financial losses already sustained. In addition to the following tips, be sure to visit Resources for Victims.

Immediate Actions

• Identify actions which cannot wait (below). Do not confuse them with long-term recovery decisions to be made in the weeks and months ahead.
• Use extreme caution before entering damaged structures. They may be structurally unsafe, and there may be many hazards in the rubble.
• Determine if temporary fencing or other measures are needed to make the property safe and secure.
• Notify your property insurance company. You should obtain a claim number, and other contact information will follow as your property is assigned to an adjuster.
• Notify utility companies of any disruption of gas, water or electricity.
• If you sustained vehicle damage, contact your automobile insurer.
• Determine if temporary measures are needed to protect against further loss. Tarps or plywood sheeting may be needed to protect damaged roofs or walls.
• Take photographs before anything is moved, changed, demolished or hauled away.
• If you do not already have an inventory of your belongings, make one as soon as possible, including the equipment, furniture and other personal property which was destroyed.
• Displaced members of a community association should provide their temporary contact information to the board or manager. HOA boards and managers should initiate frequent updates to inform all homeowners. Many boards will locate a temporary meeting site.

Insurance Claims and Public Adjusters

• Your property should be assigned a claim number and an adjuster by your insurance company.
• Public adjusters are not paid by the insurance company, but will take a percentage of the money the insurer pays you. That percentage is not set by law, and is subject to negotiation.
• You may not need a public adjuster. Most insurance claimants are able to process their claims without such assistance. Discuss this with your insurance broker or lawyer.

Banks

It can seem impossible to pay for a temporary home and the mortgage loan payments on a destroyed residence, but do not be too quick to give up on your home. Contact your lender. You may be able to obtain relief—such as a temporary moratorium on payments (with the interest being added to the principal balance). Find out what your options are, since leaving the home to foreclosure will damage your credit rating.

Contractors

You need a contractor, and it is likely that many will contact you. After major disasters, contractors seem to be everywhere, soliciting repair contracts. However, you need to do your own research. Caution is essential.

• Confirm the contractor's license with the appropriate state or local government agency.
• Confirm that the contractor holds current insurance for liability, completed works and workers compensation. Get a copy.
• Some contractors may try to win your business by promising you will not have to pay them the amount of your insurance deductible. That suggestion would be considered insurance fraud, and should be rejected.
• Will the contractor agree in advance to accept what your insurer will pay for repairs, plus your deductible amount? Rather than arguing with the insurer over the amount of the repair cost, a better approach may be to focus on the extent of repairs and hire a good contractor who will work within the insurer's cost guidelines.
• Seek bids from several contractors, preferably from those who have been in business for more than a few years.
• Get the entire contract in writing. Do not accept any unwritten guarantees or promises.

This information was extracted from a document developed by CAI Member Kelly G. Richardson, Esq., Richardson & Harman, LLP, Pasadena, CA.