The Policyholder Advocates

Published By Merlin Law Group

Duties After Loss: Duty to Make Reasonable Repairs in Order to Protect the Property

(Note: This Guest Blog is by Corey Harris, an attorney with Merlin Law Group in the Tampa. Florida, office, this is part of a series he is writing on post-loss duties).

Over the past few weeks I have posted on the duty to notify the insurer that a loss has occurred. Having sufficiently beaten that horse to the ground, for the next few weeks I will post on what is generally considered to be the second obligation under a policy: the duty to protect the property from further damage.

Most policies read something like this:

Duties After Loss

Protect the property from further damage. If repairs to the property are required, you must: a. Make reasonable and necessary repairs to protect the property, and b. Keep an accurate record of repair expenses.

In the industry this is called “mitigating the loss,” which means taking steps to keep the severity of the 1oss from increasing. While the language of a particular policy may be different, the general principle remains the same and for good reason. Pennsylvania Lumbermen’s Mut. Fire Ins. Co. 1. Nicholas, 296 F.2d 905 (C.A.Fla. 1961). Simply put, this provision is intended to keep the loss from unnecessarily increasing and thus increasing the cost to both the insured and the insurer.

Keep in mind that this does not mean that permanent repairs are immediately required. In most, if not all, cases, this means that temporary repairs must be made to ensure that the damage does not get worse. Tarping a damaged roof to keep rainwater out or turning off the water supply to a broken pipe are both common temporary repairs which can be sufficient to mitigate the loss.

How Do Recover from a Disaster?

File a Claim or Call 1-800-54-Storm (1-800-547-8676)

Recovery takes time. Catastrophe events shake even the hardiest person. But it is human nature to want to begin putting life back in order. So, here are some steps to help you on the road to recovery.

Immediately

Secure the safety of your family. Do not enter your home unless you are sure it is safe. Depending on the type of disaster, there may be exposed electrical wires, standing water or a natural gas leak. If you have any concerns about the structural or environmental safety of your home, do not enter. Contact your Allstate agent directly, report your claim online or call a catastrophe specialist at 1-800-54 STORM. (1-800-547-8676) If you purchased a policy with another company through an Allstate agent, you should contact your Allstate agent or call 1-888-213-0085, option six, for further information. Have your policy number handy and be prepared to provide contact information so your adjuster can reach you throughout the claim process. It is important that you provide all your phone numbers, even if they are temporary. Tune in to your local TV and/or radio stations for Allstate catastrophe advertising and Media Alerts that provide instructions for reporting claims. Review your emergency plan and evaluate if improvements are needed for future emergencies.

Once the Claims Process Has Begun

Take account of your loss and separate the damage from the undamaged personal property. If available, provide your adjuster with photos or videotape of the loss site prior to the event. This will assist your adjuster with the damage evaluation process. (Do you have an up-to-date inventory and recent photographs of your personal possessions? If not, download Allstate’s free home inventory software now and create a room-by-room inventory of your personal possessions.) If necessary, have a qualified contractor to do temporary repairs to prevent additional losses. Be sure to obtain a bill or invoice for this service. If bills were lost or destroyed due to a catastrophic event contact your creditors to establish a workable solution. Discuss payment issues with them directly; creditors usually appreciate forthrightness. If your home is unlivable, check with your agent or your policy to determine if you have Additional Living Expenses coverage. Save all receipts to document your living expenses while your home was unlivable. Contact the utility companies to discontinue service if your home is unlivable or destroyed.

Financial Concerns

Investigate the availability of special loans and/or grants via the Federal Emergency Management Agency (FEMA), the U.S. Small Business Administration, the A American Red Cross, local government agencies, private lenders, and philanthropic organizations.

Call to apply for federal disaster aid at 1-800-462-9029 (or 1-800-462-7585 for TDD Telecommunications Device for the Deaf). You will be required to provide your social security number, insurance information and the extent of the damage to your property. Be sure to obtain a control number that is assigned to your application.

Protect your home and personal property:

What to do after a disaster  

Look for damage, including roof damage, that could allow rain into the house, (Don’t climb onto the roof.) If your power is out, unplug all small and sensitive items to prevent electrical spike damage. (This includes TV, VCR, computers, etc.) Take reasonable steps to prevent further damage. This may include a temporary roof. repair, window glass replacement, boarding up holes with plywood and covering leaks with plastic sheeting. Remove water from saturated floors and carpet. Separate items that may be cleaned and/or repaired. Dry and clean wet furniture and clothing as soon as possible. Save your receipts; the costs for these emergency steps are covered under your insurance policy. Check with your claim representative before you dispose of any items you plan to claim as damaged. Document the time you spent cleaning up, what you did and the number of hours. Make a list of all damaged items, including quantity, description, and age. See our Claims Center for more information.

If your home is damaged so severely you cannot live in it:

Payment for expenses that are beyond your normal living expenses may be available Find temporary housing for your family. (There is no coverage under the flood policy for this expense) We suggest that you not enter into any long-term leases until you talk to a State FarmR claim representative Keep all receipts associated with the temporary housing, meals and other miscellaneous expenses.

Protect your home and personal property:  

What to do after a disaster

Look for damage, including roof damage, which could allow rain into the house, (Do not climb onto the roof.)  If your power is out, unplug all small and sensitive items to prevent electrical spike damage. (This includes TV, VCR, computers, etc.)  Take reasonable steps to prevent further damage. This may include a temporary roof. repair, window glass replacement, boarding up holes with plywood and covering leaks with plastic sheeting. Remove water from saturated floors and carpet. Separate items that may be cleaned and/or repaired. Dry and clean wet furniture and clothing as soon as possible. Save your receipts; the costs for these emergency steps are covered under your insurance policy. Check with your claim representative before you dispose of any items you plan to claim as damaged. Document the time you spent cleaning up, what you did and the number of hours. Make a list of all damaged items, including quantity, description, and age. See our Claims Center for more information.

If your home is damaged so severely you cannot live in it:  

Payment for expenses that are beyond your normal living expenses may be available Find temporary housing for your family. (There is no coverage under the flood policy for this expense) We suggest that you not enter into any long-term leases until you talk to a State Farm claim representative.  Keep all receipts associated with the temporary housing, meals, and other miscellaneous expenses.