Steps to take to recover from a natural disaster

Not sure where to start after a natural disaster? These tips can help.

Here are some steps to help you if your property is damaged during a natural disaster.

1. Stay safe and return to your property once it's clear.

Once the natural disaster has passed, you should assess the damage and start planning how to get back to your pre-disaster state. It's important to keep your mind on your financial well-being. Consider these actions:

In an emergency, use your emergency funds.

It's important to have resources for the unexpected, and that's exactly why you need an emergency fund. Avoid being dependent on a credit card and use it only for purchases you can pay off within the same month or very short time.

Take advantage of opportunities to save. For example, in case of a natural emergency you might have to evacuate. If you're anticipating or currently being evacuated and need a safe place to stay, you may be able to get discounted evacuation housing.

Get financial assistance if needed.

You may find yourself needing financial help following a disaster. The Federal Emergency Management Agency, or FEMA, can provide disaster assistance depending on the scope and severity of the disaster. Charitable organizations like the Red Cross can provide immediate support and long-term financial help if needed as well.

Keep records and receipts.

Keep records of all additional expenses. If your home is damaged by an event that's covered by your policy, additional living expenses are covered by most homeowners insurance policies. Review your policy to better understand any limitations and responsibilities you may have regarding loss of use coverage.

Keep the receipts you have for expenses that are a direct result of a disaster affecting your property, keep them. Keep records of any estimates or statements of work that are proposed to you. If your contractor is communicating directly with your insurance company, make sure you have a record of all correspondence.

2. Report your claim.

Having the right insurance can help protect your property. It can also help guide your recovery when the unexpected happens. Filing a claim with your insurance company can create a helpful roadmap, identifying timelines and actions that you or your insurance company will need to take.

Your insurance company can also be an advocate for you if you have questions or need support with contractors about work being done on your property.

Filing a claim might seem intimidating. But you can usually do it online. You may also be able to use your insurer’s mobile app. On the app, you can also check your coverage, report or view the status of a claim, submit photos, schedule an appraisal of your damaged vehicle through an approved repair shop, or reserve a rental vehicle.

3. Secure your home and make temporary repairs.

First, make sure you and your loved ones are safe. Then:

• Take reasonable steps to protect your property from further damage, but don't make permanent repairs until a claims adjuster has assessed the damage.
• If it's safe, photograph debris or damaged items before you have them removed or repaired.
• Save receipts for what you spend and submit them to your adjuster for possible reimbursement.

4. Prepare for the adjuster's visit.

Because of the large number of claims after a large disaster, inspections typically will be in order of the severity of the damage to the insured properties.

When an adjuster visits your home, they'll be checking all the damaged areas you mentioned in your claim. They'll inspect your home with a critical eye to make sure they don't miss any damage that could be covered by your policy.

The adjuster will write a report, or an estimate, that details what it would cost to repair or replace the covered damaged items.

5. Be selective when hiring a contractor.

You may need help getting your home back to normal, but be on the lookout for people who may take advantage of you.

• Require contractors to produce a license or other identification that can be confirmed by a third party such as the Better Business Bureau. Some states don’t require contractors to be licensed. You may need to use customer reviews or do some research to make sure you're hiring a reputable one.
• Don’t pay up front for any repairs or cleanup work, or even just a portion of the total fee. Legitimate contractors will bill you when the job is complete.
• Make note of which contractors are coming in and out of your home. Some contractor companies may provide you a name and photo of who will be working at your home.
• Call your insurance provider if you suspect that you’ve been approached by a fraudulent contractor.

Protect yourself from fraud.

Insurance fraud can be costly. When a disaster hits, often there are groups of people looking to take advantage of the situation. It’s important to read through any documents that are provided to you or are asked to sign, like an assignment of benefits, or AOB.

An AOB gives a contractor the ability to work directly with your insurance company to make repairs. Unfortunately, AOBs have been a source of fraud. A contractor using an AOB doesn’t always mean fraudulent behavior, but you should fully read and understand anything that you sign.

If you have questions about a contractor's estimate or if something doesn't feel right about your claims process, contact your insurance company.