Homeowners Insurance: Smoke/Fire Claim Information
Colorado Springs Together asks you to please pass this important information along to your Mountain Shadows neighbors.
Information on the Homeowners Insurance Settlement Process can be found on the web at: www.rmiia.org/Homeowners/Walking_Through_ Your_Policy/Settlement_Process.asp
You are the customer and your own best advocate:
Remember, it is your policy and you are the customer! You have paid your premiums for years for such an event as this. If you follow the process and document your loss you will be able to advocate for yourself. The intent of most policies is to indemnify, that is return your property to where it was before the incident occurred. Pictures, video, actual damage (such as air filters clogged from smoke in your home), receipts, lists, or any other record of what you own are examples of what you can provide to document your loss. You didn't make a video or photo record of what you own? What about the family gatherings and celebrations where you took photos or video in your home?
Don't assume that "it's all good." Many of us are so grateful to have our homes standing that we don't want to file a claim:
Your home is likely one of the major assets in your financial portfolio (especially given our economy of late). In order to protect your quality of life, the value of your property, and the overall value of the neighborhood, it is necessary to mitigate damages to your home. In addition to the less-than-obvious damage that can occur from smoke, your roof, gutters, and home exterior may require cleaning and/or repairs as well. Have a trusted, licensed contractor inspect your home inside and out.
Do not sign or spend anything until you are certain you have your insurance adjustment in line:
Be careful to read your policy, meet with your adjuster and contractors, research the possible hidden problems from smoke/water damage to confirm what your options are before signing any repair contracts or paying for anything related to the repairs or replacement of your household items or home. There can be damage with very subtle signs if your home has smoke contamination.
You do not have to accept anything as a final settlement until you are satisfied with the results and your policy claim timeline is expired:
- Check your policy to find out the timeline for a claim, in some cases it is one or two years. You do not have to accept the opinion of the insurance company or of any single contractor.
- Get multiple professional opinions as to the condition of your home before you determine the appropriate mitigation. Keep copies of all estimates and information to demonstrate the need for this mitigation to your insurance company if necessary.
- You may have an agent, or you may be insured directly by the company without an agent. Even if you have an agent, you will likely be working with a claims adjuster. Agents know your policy, but they may not know the specifics of settling claims.
- Insurers are companies, some have shareholders to whom they pay dividends and some return money not used for claims and operations to their customers. However, in every case, your insurance policy is a contract. Expect them to honor their contract.
Only you can authorize repairs and approve the work:
- Insurance companies do not hire contractors directly and will not take responsibility for the completion or quality of any work done.
- It is your responsibility to hire a bonded, insured, experienced contractor. Due diligence is very important here as there are many "fly by night" companies and individuals who will take advantage of the emotional intensity of the situation as well as the increased demand for their services.
Be careful to document the repairs and purchases you make:
Your mortgage company and/or insurer may require documentation that you made the critical repairs or restoration. Your mortgage lender has a financial interest in your home and sometimes can be named along with you on the settlement check for structural damages that may impact the value of the home. If you own your home and owe nothing on it, the settlement check should be made out to you.
Communication with the insurance company's adjuster isn't going well:
Ask to speak to his or her supervisor and be clear and concise as to what you believe the problem to be. If the situation doesn't improve, ask the supervisor for another adjuster to be assigned to your claim. If problems remain, the Colorado Division of Insurance can help. Be prepared to document the issues you have and ask the state for assistance.
The Colorado Division of Insurance is a good resource for the laws and statutes regarding homeowners insurance. They confirm that your individual claim history cannot be rated (increased premiums) because you file a catastrophic event claim. The entire area may experience increased premiums whether you file a claim or not, so do what is best for you individually.
CST expresses our appreciation to to Mountain Shadows resident Kerri Oliver for providing the original information contained in this email. Kerri demonstrates the spirit of neighbors helping neighbors. Thanks, Kerri!
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Colorado Springs Together is an independent 501(c)(3) Non-Profit
Colorado Springs Together is a community-driven volunteer effort, and is an independent 501(c)(3) non-profit organization. The team members are distinguished citizens and business professionals in the community facilitating and coordinating a quick and effective rebuilding process for the neighborhoods devastated on June 26th by the fire. The donations received will go towards the activities required to help restore the lives and the neighborhoods affected by the fire at the same time maintaining a strong sense of community during the rebuilding process.
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