Destructive hurricanes, which threaten millions of people annually, are par for the course in coastal Louisiana. Since 1980, these storms have caused over $1.5 trillion in property damage. Most of these losses are insured losses. These property owners faithfully pay premiums month after month and expect insurance companies to do the right thing. But companies do not like giving refunds, and insurance companies do not like paying claims.
When insurance companies ignore the rights of policyholders, a New Orleans insurance lawyer stands up for those rights in court. Standing up for individual property owner rights is not a one-time affair. Instead, as outlined below, it’s a long and sometimes frustrating process. A New Orleans insurance lawyer can make this process easier.
This guide provides a detailed, step-by-step approach to help you understand and manage the process effectively.
Step 1: Preserve Personal Safety and Prevent Further Damage
Safety is the number one priority in a hurricane or other storm damage claim. If authorities issue an evacuation order, leave and do not return until these authorities give the all-clear signal. These orders are often controversial. But there is plenty of time to sort that aspect out later. But at the time, it is safety first.
Before you leave, take steps to secure the property and prevent further damage. Some suggestions include:
- Turn off utilities (mostly electricity and gas) to reduce the risk of fire or electrocution,
- Cover any broken windows or roof holes with tarps or boards, and
- Move all salvageable personal property to a secure and dry location.
These measures help protect your property. More importantly for the purposes of this blog, these precautions, even if they are not 100% effective, show an insurance adjuster that you took care of your property.
Step 2: Document All Damage
When you return, before starting any cleanup or repairs, thoroughly document all damage. This evidence is critical for your claim.
- Photograph (including still pictures and videos) all affected areas, including the interior, exterior, and yard. If appropriate, take pictures of neighboring houses to show the adjuster that the damage was widespread.
- Make a detailed inventory of all damaged items, such as furniture, appliances, electronics, and personal belongings. Include make, model, purchase date, and estimated value where possible.
Include some “before” pictures and videos as well to show the true extent of damage. If that “before” video shows kids playing in the yard or something similar, that’s even better.
Step 3: Carefully Review the Policy
A lawyer wrote your insurance policy. Therefore, a New Orleans insurance lawyer should review it. A lawyer spots loopholes and translates legalese into a language you understand. Here are a few general guidelines about those loopholes and exclusions:
- Homeowners’ insurance typically covers wind damage but not flood damage.
- Owners must buy separate flood insurance policies, either from the National Flood Insurance Program (NFIP) or a private insurer.
- Windstorm insurance may be a separate rider or policy, mostly depending on location. Usually, a “windstorm” is wind damage associated with a named storm, but check the policy definitions to be sure.
- All policies have standard deductibles. Some policies include higher hurricane or windstorm deductibles. These higher deductibles are often a percentage of the insured property’s value.
Understanding basic coverages and exclusions makes it much easier to navigate the insurance claims process.
Step 4: Promptly Notify the Insurance Company
When we say promptly, we mean promptly. Any reporting delay could lead to claim denial based on dissipation (waste) of assets. Send an immediate message through a mobile app or call a 24/7 claims hotline. During this conversation or as part of this message, provide:
- Policy number,
- Contact information, and
- Brief damage description.
When we say brief, we mean brief. Do not provide any details or volunteer any information. Let a New Orleans insurance lawyer fill in these blanks later.
The sooner you file, the sooner the claims process can begin. Delay usually means unwanted complications or reduced compensation.
Step 5: Meet with the Insurance Adjuster
After official claim filing (notice usually doesn’t count as filing), the insurer must assign an adjuster to assess the damage. To prepare for this visit:
- Be present during the inspection if possible.
- Share the aforementioned photo/video evidence and inventory.
- Do not leave adjusters to do their work. Point out all damaged areas, even those that might not be immediately obvious, such as attic water damage or mold growth.
For added protection, consider hiring a public adjuster—someone truly independent who works for you, not the insurance company. Some so-called “independent adjusters” are actually contracted by insurers. A public adjuster can provide an unbiased second opinion that significantly strengthens your negotiating position if a dispute arises—which it often does. Just make sure they inspect the damage before the insurance company’s adjuster shows up.
Step 6: Keep Records of All Communication
Communicate by email and text whenever possible. These records keep themselves. At a minimum, all estimates or agreements must be in writing.
Keep careful phone call notes. Include the person’s name, title, and any other identifying information. Use caution when recording conversations. Some states are dual-party consent states. Both parties to a conversation must agree to its recording. A “this call may be recorded” line usually, but not always, covers this base.
Step 7: Only Make Temporary Repairs
In most cases, your insurance policy requires you to take reasonable steps to prevent further damage—but only after thoroughly documenting the scene with photos and video. For example, if water is pouring through a broken window or damaged roof during a storm, you’ll need to board it up or cover it with a tarp right away, even before an adjuster can arrive.
That said, limit your efforts to temporary repairs until both the public and company adjusters have had a chance to inspect the damage. Once they’ve done so, you can go ahead with additional temporary fixes like sealing roof holes, boarding up windows, or drying out affected areas.
Keep all receipts for supplies and services—you may be eligible for reimbursement. And unless absolutely necessary, don’t throw anything away until the damage has been well documented, both on video and in writing.
Step 8: Understand the Settlement Offer
After company adjusters file their reports, the insurance company must make a settlement offer, usually within thirty days. Ensure that the offer includes:
- Repair estimates,
- ACV (Actual Cash Value) or RCV (Replacement Cost Value) personal property replacement costs, and
- Additional Living Expenses (ALE) if your home is uninhabitable
The independent adjuster’s report usually contains the same information. If there is a gap between the independent adjuster’s report and the company adjuster’s assessment, consider partnering with a New Orleans storm damage lawyer.
Possible Step 9: Manage Disbursements and Repairs
If you accept the settlement offer, you have a legal duty to responsibly manage the settlement funds.
Use licensed and insured contractors only. Beware of storm-chasing scammers who offer cheap repairs up front but deliver subpar or incomplete work. Also, beware that if the property is mortgaged, the lender may be a co-payee and must be involved in the repair process.
Always get contracts in writing and never pay the full amount upfront. Track all costs to ensure you stay within the claim budget, unless you plan to cover any overages out of pocket.
Alternate Step 9: Appeal or File a Complaint
A homeowner does not have to accept an insurance company’s take-it-or-leave-it settlement offer. Similarly, homeowners do not have to take claim denials lying down. Most insurance agreements include mandatory mediation clauses as well as arbitration bypass provisions. So, in most cases, a New Orleans insurance lawyer must work out a deal with the insurance company if at all possible. Failing that, the matter proceeds to arbitration instead of trial.
Count on a Hard-Working New Orleans Attorney
Proper preparation makes the long insurance claims process shorter. For a confidential consultation with an experienced insurance lawyer in New Orleans, contact Insurance Claim HQ. Virtual appointments are available.
