How to prepare an insurance claim after a storm

Storm claims are different from other property claims in three ways. Many homes in the same area are damaged at once, so adjusters and contractors are stretched and the process runs slower. The damage is often partly hidden: hail bruising on shingles, water inside a wall cavity, a cracked tile that leaks at the next rain. And the policy frequently treats storms differently, with a separate wind and hail deductible, exclusions for flood and surface water, and conditions about protecting the property from further damage.

In the Southwest and Intermountain West the storms vary by place: monsoon microbursts and dust storms in Phoenix and Tucson, hail along Utah's Wasatch Front and in the Treasure Valley around Boise, downslope wind events in northern Nevada, and flash flooding almost anywhere a wash runs through a neighbourhood. The claim process is the same for all of them. This guide sets out the order.

What to gather

Collect these in the first day or two, before repairs start and before memories fade.

• The policy and declarations page, with the all-perils deductible, any separate wind and hail deductible, and the limits for the dwelling, other structures, contents and additional living expenses.
• The date and approximate time of the storm, and a local weather report or news item confirming it hit your area.
• Photographs and video of every damaged area, taken wide and close, before anything is moved or cleaned up: roof, gutters, windows, siding, fences, cars, trees, and the interior.
• Receipts for any emergency work or supplies: tarps, plywood, water extraction, a hotel night.
• The home inventory, if one exists, or a room-by-room list of damaged contents with approximate age and purchase source.
• Records of the roof's age and any recent repairs or inspections, since carriers look at wear and tear alongside storm damage.

Step one: make the property safe and prevent further damage

Every homeowners policy requires the insured to take reasonable steps to protect the property from further damage after a loss. That means tarping a hole in the roof, boarding a broken window, shutting off water to a burst line, and moving wet contents out of standing water. The reasonable cost of those steps is normally part of the claim. Damage that happens later because nothing was done, such as mould growing behind a wall left wet for weeks, can be excluded as a failure to mitigate.

Do the temporary work, photograph it, and keep the receipts, but do not start permanent repairs before the carrier has seen the damage or agreed that you can proceed. Throwing out a soaked carpet is reasonable; replacing the roof before an adjuster has inspected it removes the evidence the claim rests on. If you must dispose of damaged items for health reasons, photograph them first and keep a small sample of materials such as carpet or flooring.

Step two: report the claim and identify the deductible

Report the loss promptly through the carrier's phone line, app or website, and write down the claim number and the adjuster's name when one is assigned. Policies require prompt notice and some set an outer time limit for reporting, which varies by carrier and by state; after a large storm, reporting early also places the claim earlier in the adjuster queue.

Before the adjuster calls, find the deductible that applies. Many homes in these four states carry a wind and hail deductible written as a percentage of the dwelling limit rather than a flat figure, and it can be far larger than the all-perils deductible the household remembers. Work out the dollar amount. If the damage is plainly below it, report the loss anyway if there is any chance of hidden damage, but understand that the claim may produce no payment. Check what caused the water damage too: rain entering through a storm-damaged roof is usually covered, while water rising from the ground or flowing in from a flooded street is flood, which the homeowners policy excludes and only a separate flood policy covers.

Step three: the inspection and the estimate

Be present for the inspection and walk the adjuster through every damaged area on your list, including the ones that are hard to see. For a roof, ask the adjuster to note the test squares used for hail, and ask whether soft metals such as vents, gutters and air conditioning fins were checked, since dents there help separate hail damage from wear. If you have a roofer you trust, having them attend the inspection is reasonable.

The adjuster's estimate will list the scope of repair, the replacement cost, and, if the policy pays actual cash value first, the depreciation withheld until repairs are finished. Read the scope before signing anything. Common omissions include drip edge and underlayment on a roof replacement, the cost of matching siding or tile where the original product is discontinued, code upgrades required by the city when the roof is replaced, and debris removal. Code upgrades are paid only if the policy includes ordinance or law coverage. If the contractor finds more damage once work starts, it submits a supplement; that is normal.

Step four: contractors, payments and closing the claim

After a large storm, contractors knock on doors within hours. Some are local and reputable; some are out-of-state crews who leave when the work dries up. Before signing, confirm the contractor holds a licence in your state, carries liability insurance, and has a local address. Read any contract for an assignment of benefits, which hands your claim rights to the contractor, and for a cancellation clause. You are not required to use a contractor the carrier recommends, and you are not required to sign with anyone at the door.

Claim payments on a mortgaged home are usually made jointly to the homeowner and the mortgage lender, and the lender releases funds in stages as repairs progress. Recoverable depreciation is paid after you show the repairs are complete, so keep invoices and final photographs. Additional living expenses, if the home is uninhabitable, pay the increase in costs above normal, not the whole hotel bill, so keep a record of normal household spending for comparison.

Common mistakes

Storm claims shrink for predictable reasons.

• Waiting to report because the damage looked minor from the ground.
• Letting temporary damage become permanent damage by not tarping or drying out.
• Discovering the percentage wind and hail deductible during the claim.
• Assuming water that came in at ground level is covered like water from the roof.
• Signing an assignment of benefits with a door-to-door contractor.
• Not claiming the recoverable depreciation after repairs are finished.
• Filing the car's hail damage under the home policy; vehicles are claimed under auto comprehensive.

A worked example

Suppose a hailstorm passes over a house in Layton with a $400,000 dwelling limit, a $1,000 all-perils deductible and a one percent wind and hail deductible, which is $4,000. The owners tarp two cracked skylights the same evening for $300, photograph the roof, gutters and the dented air conditioning fins, and report the next morning. The adjuster writes a full roof replacement at $22,000 replacement cost, withholds $6,000 of depreciation, and misses the city's requirement for new underlayment. Their roofer submits a supplement for $1,500, which is approved. The first cheque, made out jointly to the owners and their lender, is $13,800: the $17,500 actual cash value of the roof and supplement plus the $300 tarp, less the $4,000 deductible. When the roof is finished and the invoice sent, the $6,000 of depreciation is released, so the total paid is $19,800 on a $23,800 loss. The figures are hypothetical; the supplement and the depreciation claim together were worth $7,500 they could have left on the table.

How to use this

If you are a client, call us after the storm and before the adjuster visits; we will tell you which deductible applies, whether the water damage falls under the home or a flood policy, and what the estimate should include. If you are not, the steps are the same with any carrier. When the claim is closed, it is worth revisiting the wind and hail deductible and the ordinance or law limit at renewal, across the carriers we represent in Arizona, Nevada, Utah and Idaho.