After the Texas Tornadoes: Tips for Dealing with the Insurance Company

The Aftermath

Storm season in Texas has already been devastating this year. If your house or commercial property has been struck by one of the recent tornadoes, derechos or supercells in Houston, Austin, Dallas, Fort Worth or any of the surrounding areas, you may still be putting the pieces back together. After the storm passes and your basic needs have been met, you probably have filed a claim with your homeowner's insurance company or commercial property insurer. Here are some tips that may help you through the claims process.

After reporting the claim, make sure to begin gathering together your evidence. Some of this evidence includes getting together your pictures of the home before the storm, and getting together lists of photographs and receipts of damaged items. Also, you should take pictures of all of the damage, do not throw anything away unless you are told to do so in writing by the insurance company. Communicating by email with your claim representative can be a good way to preserve your communications.

Gathering the Evidence

After you have reported your claim, you can expect that you will meet with an adjuster. After tornadoes and other catastrophic events, many adjusters are independent contractors and do not work directly for the insurance company. As a result, this may not be the only adjuster or claims representative that you have to deal with. Before the adjuster arrives, make sure that you walk around your home and look for all potential damages. You might also gather together basic information about the storm or tornado and its path. You're adjuster may be overwhelmed and any information that you can provide might be helpful.

What To Expect From the Adjuster

When the adjuster arrives, walk around the home or builder with the adjuster. You might bring someone else with you to be a witness to any statements that the adjuster makes. You might also consider tape recording the inspection. I have had several cases where initial adjusters have made comments suggesting that a home should be totaled or was a total loss and the company has later backed off of these statements. For information on Policyholder Protections in Texas, check out our recent blog.

Go ahead and begin getting together estimates for any damage to your home or property from reputable contractors. Make sure that the contractors are licensed and bonded. If the damage is extensive, then you probably want to consider hiring a licensed home builder or restoration contractor. If you suspect that your home or building has foundation damage or structural damage as a result of the storm, you might consider hiring a structural engineer to look at the damage.

While you may be tempted to wait for the insurance company to hire and pay for the engineer, the same engineering companies often work for the same insurance companies on many different claims. As a result, the possibility of bias exists. Once the insurance company's engineer comes back with a report that minimizes damage to your home, then the insurance company will be less likely to believe that damage has been caused by the tornado, even if you later obtain an engineer who says so.

What To Do Once You Receive The Estimate from the Insurance Company

When you receive the estimate from the insurance company be sure to compare it with the estimates that you have gotten. Most insurance companies use a computer program called Xactimate. While this is a very complicated program that uses a lot of data, it is only as good as the person entering the information and it doesn't necessarily represent the price that a contractor in the area would charge to fix your damage. In addition, the insurance adjusters are often in a hurry and can miss large areas that have been damaged.

If your estimates are higher than the insurance company's estimates, make sure that you provide them to the insurance company. You can also meet with your contractor and the insurance adjuster to try to work out any areas of difference.  Or you can contact the Texas Department of Insurance. 

For additional resources, make sure to check out the Texas Office of Public Insurance Counsel and the Texas Consumer Homeowners Insurance Bill of Rights.  If you have any questions or need additional information, or anything at all, please contact us at 205-894-8900.