Readers' Watchdog: Home damaged by weekend storms? Here's what you need to know
Insurance agents have a responsibility to make sure homes and other structures are insured for the right amount, and they are supposed to check that coverage annually. But many Iowa homeowners have found out too late after tornadoes like last weekend's, or other severe storms, they didn’t have enough coverage.
Attorneys who have filed lawsuits for clients against insurance companies following disasters in Iowa warn that after-the-fact complaints to the state may not do much good. So it’s always smart to review your homeowners policy annually to determine if it needs to be updated.
If your home was damaged in the storms, here's advice from the Iowa Insurance Division's post-disaster claims guide.
More: NWS: There were at least 17 tornados in Iowa last week. Here's what we know so far.
Should I file an insurance claim?
Before reporting damage, find out what your deductible is. If the damage is minor, you might decide you’re better off paying for the repairs out of pocket instead of filing an insurance claim. But remember that you might not be able to see all the damage. You may want to have a contractor inspect your home. If you believe the damage will cost more than your deductible to repair, or there’s a lot of damage, you may want to file a claim.
How do I file an insurance claim?
It’s important to notify your insurance company as soon as you know there’s damage and you decide to file a claim. The easiest way to report damage is to call your insurance company or agent directly.
From 2022 Central Iowa tornado victims wait and worry they will be told they are underinsured
When filing a claim, be sure to get the name and phone number for every person you talk to. Record your claim or reference number. Ask questions about your coverage, including what it includes, whether there are separate deductibles for hail, tornado or wind damage, and whether hotel costs are covered if you are displaced. Ask if there are any special processes or procedures you need to know about; when you can expect an adjuster to call; and what other information the company will need to process the claim.
More: For West Des Moines condo owners, a year-ago fire was only the beginning of their troubles
What other steps should I take?
Compile a list of all damaged or destroyed personal property (a home inventory list) and receipts, if you have them, showing when you bought the damaged or destroyed items. You’ll need this list when you meet with the adjuster.
If your home is severely damaged, do your best to secure it and your personal belongings. Gather important papers, including insurance policies. Take those with you if you can’t stay in your home. If you can’t stay in your home, save any hotel receipts. Contact your doctor’s office, pharmacy or health insurance provider if your prescription medicines were lost or if you lost your glasses, contacts, hearing aids, walker, wheelchair, or other medical equipment in the disaster. Make sure you notify utilities and your mortgage company and make arrangements for mail deliveries.
What should I expect my homeowners insurance to cover?
Most homeowners policies will pay the additional expenses you have if you can’t stay in your home because of damage from a covered disaster. For example, if you move into a hotel or apartment while your home is repaired or rebuilt, the insurance company will pay your costs for temporary housing. Just don’t expect the insurance company to pay for your stay at a 5-star resort.
If you don’t hear from an adjuster in a reasonable amount of time, contact your agent or the company. A reasonable amount of time could be three to five days for a minor claim. Be sure they know how to contact you.
How do I make sure I'm getting all that I'm entitled to?
Remember, your insurance settlement won’t necessarily be the same as your neighbor’s. Your coverages, deductible, and policy limits may be different even if the damage looks the same. If the insurance company denies any part of the claim, ask for the denial in writing. Keep all paperwork. If you don’t believe the offer is fair, call the insurance company. Be prepared to explain why you think the offer is unfair. If you’re not satisfied with the response, contact the insurance division.
Differences in construction estimates are common. Ideally, you and the insurance company should reach agreement on a “scope of loss.” This is a detailed list of the quantities of construction materials, labor, profit and overhead, building code compliance, and every single item required to repair or rebuild your home. Once you’ve submitted all the information that your insurance company needs, including written estimates from contractors, the adjuster will calculate the total cost.
Insurance carriers don't typically send one big check to resolve claims after major damage. Most consumers find it takes at least 18 to 24 months to repair or rebuild a home and replace their possessions. The claim stays open until the insurer has made all the payments the homeowner is entitled to under the policy.
How can I appeal my settlement?
Iowans who are having difficulty with their insurance carrier may file a complaint with the Iowa Insurance Division. But beware: In Iowa, it's difficult for homeowners to win in disputes with their insurance companies unless they have legal representation.
Homeowners have two main ways to resolve disputes: submitting to a neutral appraiser panel or filing a lawsuit. Often, lawyers file lawsuits in disputes to preserve homeowners’ still-unpaid claims because most policies in Iowa carry a one-year deadline for legal action after the date of a loss.
How can I keep myself from being taken advantage of?
After storms and other disasters, fraudsters, scam artists and gougers often arrive quickly.
"This is when we need to lean on each other more than ever, neighbor-to-neighbor, and keep an eye out for those who seek to take advantage of Iowans’ hardships," Attorney General Brenna Bird said in a statement Monday. "Iowans are resilient, but they should not need to fight off scammers while rebuilding their lives."
Here are a few tips to help you avoid becoming a victim of a disaster fraudster or scam artist:
If you’re working with contractors you don’t know, find out where they’re from. Many fraudsters will travel from state to state.
Before you sign any contracts or pay any money, ask for references. Beware of those who are aggressive in their sales tactics, urging you to act immediately.
Request a contractor’s driver’s license and take pictures of their vehicles’ license plates, and get a written contract. But and never sign a contract that allows the contractor to exclusively decide on final price, scope of work or materials.
Never pay the full amount before the work is complete, and never pay by bank wire transfer, gift card, cryptocurrency, or cash.
Ask your local Better Business Bureau and the state Attorney General’s Office about complaints against contractors you may be considering hiring. Also, check online.
In most situations, you have three business days to cancel a home repair contract after signing it.
Most importantly, report any suspected fraud to your insurance agent and the state insurance division as soon as possible.
If you are suspicious of a storm-chaser scam or price gouging, contact the Iowa Attorney General’s Office at 888-777-4590 or file a complaint online at https://www.iowaattorneygeneral.gov/for-consumers/file-a-consumer-complaint.
On price gouging, state law defines it as occurring when an Iowan is charged excessive prices for essential goods or services following a disaster. Whether a price is excessive is generally based on pre-disaster prices. The law recognizes a reasonable pricing structure for the recovery period that may allow some increase in prices.
Gov. Kim Reynolds has issued two disaster proclamations in recent weeks related to the severe weather that trigger state regulations prohibiting price gouging in the affected counties ― Allamakee, Cass, Des Moines, Fayette, Henry, Lee, and Pottawattamie ― during the period of the proclamation and up to an additional six months. Items regulated under the anti-gouging protections include but are not limited to, water, food, medicines, sanitation supplies, utilities, and building materials.
To report suspected price gouging, visit iowaattorneygeneral.gov and search for "price gouging" to access an online or printable complaint forms.
Lee Rood's Reader's Watchdog column helps Iowans get answers and accountability from public officials, the justice system, businesses and nonprofits. Reach her at lrood@registermedia.com, at 515-284-8549, on Twitter at @leerood or on Facebook at Facebook.com/readerswatchdog.
This article originally appeared on Des Moines Register: A guide to what homeowners should know when making storm damage claims
