10/07/2024
I know there is a lot of this going around but this is great info.
I am posting this great advice from a hurricane survivor and insurance claims expert that a friend posted on another page - hope it helps.
If you are reading this and lost your home or had your property damaged, I know exactly how you feel, and I am so sorry. The good thing is, if you are reading this, you are alive. I am experienced in both disaster insurance claims (through your homeowners and flood insurance) and also FEMA claims (for what insurance does NOT cover).
Here's a few pieces of advice:
1. Look into your appraisal clause in your homeowner’s policy. See if it applies to your flood policy.
2. Consider carefully whether to immediately hire a public adjuster or whether to hire one at all. It is best to wait until you receive your first offer from your insurance company before even considering whether to hire a public adjuster for their 10% fee. For example, if you hire the public adjuster immediately and the first offer from insurance is $100,000 before the public adjuster has even done anything, the public adjuster will get their 10% of $100k (so $10k to PA). If you waited and got that first offer of $100k, and THEN hired a PA who increased it to $150,000, you would only pay them the 10% of the additional $50,000 you received (so $5k to PA). Additionally, do not sign a contract that has hand-written adjustments on it. The maximum they can charge is 10%. There is an extensive law that passed in July 2023 on what a PA can do, make sure their contracts have been updated to reflect that language [Section 626.854(11)(b)(4), Florida Statutes].
3. Do NOT accept the first offer from insurance. I took my claim and went back through each room with a fine-toothed comb. The difference between a hollow door VS a solid fire-rated door VS a double French door adds up. Insurance adjusters are working quickly and will not be selecting the top-tier options that are likely in your homes.
4. That being said, accepting an offer from insurance is not locking in. You should take and cash the first check from insurance to show you are not voiding your insurance contract by dragging your feet.
5. One way to increase your insurance claim is to have a contractor provide a replacement/repair/rebuild estimate. Provide that to the insurance company.
6. If the insurance company requires an engineer, make them pay for it. They have to hire a third party engineering that is not biased, and they are legally obligated to provide you a copy of the engineer’s report. If they delay hiring one, offer to send them three engineers who are experienced in disaster loss who are available (I have references if you need any in the county – I am engineering myself).
7. If NFIP determines that your home is “substantially damaged”, that means the cost of repairs is 50% or more of the structure’s market value (NOT including the land value). If your property is substantially damaged, you may be able to get an additional $30k specifically to elevate, relocate, or demolish the structure (it’s called the Increased Cost of Compliance provision). This can be good or bad depending on your income level. If you make more than $97,800 individually or as a couple, you don’t qualify for any HUD assistance to raise your home. If you make less than that, you can apply for a Homeowner Assistance Fund (HAF) for grant money to help you elevate, relocate, or demolish your home.
8. When it comes to the time to find a contractor, there is a whole HOST of questions you need to be asking.
a. What is their license #? Look up their license # on sunbiz dot org to ensure they are licensed in Florida and for how long.
b. How long have they been working in Florida? Many contractors will be driving in from out of state to cash in on disaster recovery.
c. Who will be the crew on site? How long have they worked for the company? Many are hiring subs that they have never worked with before to be able to staff this much work.
d. What is their payment structure? Generally, most hurricane contractors require 10-20% for materials, 50% completion, and 90% completion, and then you should never pay the last 10% until after the punchlist.
e. What is their experience with working with insurance companies? Insurance companies will conduct payouts on materials, percentage completion, and full completion.
f. Are you as the homeowner getting 3 estimates for the same amount of work before signing with one?
9. For FEMA claims, FEMA will help with anything that is NOT covered by insurance up to $42,500 for home repairs and replacements, and another $42,500 for other needs including transportation. KEEP YOUR RECEIPTS for hotels, meals, chainsaws to cut down trees to access your property, generators if you needed to refrigerate your insulin or are on a C-PAP, new shower seats or ramps into your homes or any other needs for disabilities. It won’t cover items like fences, garages, or anything that is NOT-essential to keeping you safe from the elements. We can meet to submit the FEMA claim together.
10. For next year, your insurance company may ask you to sign a mandatory arbitration agreement that would save you 15% on your premium. I personally recommend not signing this, as it waives your ability to fight back on their low offers.
Our community is strong. We will make it through this.
