1. What do I do if I do not have insurance on my property?
If your property is uninsured, you will not receive any claim payments from an insurance company. However, if another company or person was responsible for your damages, a fire insurance attorney may be able to assist you recover compensation for your damages from them.
If a disaster has been declared, contact the Texas Division of Emergency Management by phone at 512-424-2138 or online at www.txdps.state.tx.us/dem/index.htm. You may contact the Federal Emergency Management Agency (FEMA). FEMA is available seven days a week from 7 a.m. to 10 p.m. at 1-800-621-3362, online at www.fema.gov, or on the new FEMA mobile website at m.fema.gov. You may need to rely upon your own resources and help from your community. The American Red Cross (1-800-733-2767 or www.redcross.org) may be able to assist you in your recovery.
2. Our house was destroyed by the fire, should we continue to pay our insurance premiums?
Check with your lender before you stop paying premiums. Most homeowner policies have liability coverage that will pay if someone working on your property is injured, and you are sued and found legally responsible. Homeowner policies also cover personal property when it is away from your home. If you removed your personal property before the fire, it may still be covered. If you move to a rental property, you may wish to consider renters insurance. Discuss your insurance needs with your insurance agent.
3. I have received a check from the insurance company, but I’m not satisfied with the amount. I plan to file a complaint to request additional payment. Should I cash the check? If I cash the check, does it mean that I accept their decision and amount of payment?
Be careful about signing a check before reviewing your insurance policy for the effects of cashing the check or discussing your concerns with the company. Get everything in writing if the insurance company promises you anything. Do not EVER take their word for it. Call the adjuster or company first before cashing the check and make sure their representations to you are made in writing. Read both sides of the check carefully, as well as any accompanying documents to make sure they do not include any “full and final payment” language or similar language. Some companies’ checks include a disclaimer printed on the back or have limitations on the time you may deposit or cash the check.
The disclaimer often states that your endorsement of the check releases the insurance company from further liability. In some cases, particularly with regard to damaged real property, the check may be a partial payment to initiate repairs. Additional funds may be released when you submit proof that repairs have been completed. Please be sure that you understand what the check represents and how cashing it will affect you prior to taking any action regarding the check. If you need further explanation or information, you may wish to contact your agent, or an insurance attorney at the Amaro Law Firm.
4. Is my vehicle covered for fire damage?
Fire damage to your vehicle may be covered if you carry insurance other than collision coverage, also called comprehensive coverage, on your policy. This information can be found on your insurance policy’s declarations page. If you do not have a copy of your policy, you may wish to check with your insurance agent or insurance company.
5. Can I make repairs to my property immediately?
Generally, you should make temporary repairs if necessary to protect your property from further damage. In the insurance business, this is called “mitigating” your damages. First, you NEED to take photos and videotape your damages so the insurance company does not later deny your damages existed or minimize the extent of the damages to underpay you. This is not a “maybe” situation as this is a common bad faith tactic. Also, save every single receipt. Do not make permanent repairs until an adjuster has inspected the damage. Most policies cover the cost of necessary temporary repairs, so save your receipts for materials and labor. You may wish to take pictures of the damage before making temporary repairs. Please read your policy or check with your agent or insurance company for further information.
6. What’s the difference between the different types of homeowner’s policies? How does a dwelling policy differ from a homeowner’s policy?
Homeowner’s policies may either provide “all risk” or “named peril” coverage. All risk is used to describe policies that typically cover all perils unless specifically excluded in the policy. Named peril means the damage must be caused by a peril that is specifically named or listed in the policy. A homeowner’s policy provides coverage for the dwelling, personal property, and personal liability. A dwelling policy provides coverage for the dwelling or personal property.
7. Does a homeowner’s insurance policy provide loss of use coverage if I can’t stay in my house due to an evacuation ordered by a civil authority?
It depends on the policy. Some policies may provide coverage for additional living expenses if a civil authority prohibits you from using the residence premises as a result of direct damage to neighboring premises caused by a covered peril (i.e., evacuation orders from a hurricane). This coverage is generally limited to a period of up to two weeks. Please read your policy or contact your insurance agent or insurance company for more information regarding coverage provided by your specific policy.
8. Does a homeowner’s insurance policy provide loss of use coverage if my house is damaged in the fire and I cannot stay there?
If you cannot remain in your home because of loss from a covered peril, as defined in your homeowners or renter policy, you may receive payments for additional living expenses (ALE). ALE coverage typically includes the cost of staying in a hotel, motel, or other temporary shelter. However, you must read your policy carefully or contact your insurance agent or insurance company for ALE coverage limitations. Keep all receipts as insurance companies will only pay for ALE damages you can prove. If the damage forces you to move, be sure to tell your insurance company where you are and how to reach you by phone.
9. Is smoke damage from a fire covered?
Most homeowner’s insurance policies provide coverage for damage to property caused by smoke. Please read your policy or check with your insurance agent or insurance company for further information. Take photos and videotapes of your home and keep them in a safe place.
10. Fire caused my tree to fall on my house, which caused damage to my roof. Does my homeowner’s policy cover the damage to my house and pay for the removal of the tree from my property?
Homeowner’s policies provide coverage for fire damage. Therefore, the roof damage caused by the tree is covered. Most policies also pay to remove a tree if a covered peril caused it to fall on and damage covered property. Some policies limit the coverage for removal to $500 per tree and $1,000 per loss. Please read your policy or contact your insurance agent or insurance company for more information regarding coverage provided by your specific policy.
11. My home and all of my outbuildings and fences were totally destroyed in the fire. Does my insurance company have to pay me the full amount of my policy?
Under most home property policies in Texas, if the insured property, other than personal property, is a total loss due to fire damage, the insurance company must pay the full amount under the policy for each destroyed item covered by the policy. This is known as “liquidated demand.” For some property, like your home, the policy will include a dollar amount for the limit of liability. For other property, like other structures and fences, the coverage is often a percentage of the limit of liability for the dwelling. For example if your home is insured for $100,000 and the policy covers other structures for 10 percent of the dwelling limit, you would have $10,000 available for other structures. Please read your policy or check with your insurance agent or insurance company for further information. If you have a mobile home policy, or if you have insurance with a farm mutual or surplus lines insurance company, please read your policy or consult with your insurance agent or insurance company to determine whether it includes coverage for liquidated demand.
12. I’ve received a check from my company for damages to my home. It is going to cost more to repair than the amount received. Did they pay me enough for damages?
That depends on several things, including your insurance policy and the facts and circumstances surrounding the damage and proposed repairs. If you have replacement cost coverage (RCV), your claim may be paid in two stages. Your first claim check may be for the actual cash value (ACV) of the damaged property. ACV is determined by taking the replacement cost for the covered loss and deducting for depreciation.
Once you repair or replace your damaged property, RCV generally entitles you to receive the amount that was previously withheld in your first check due to depreciation, up to the replacement cost of the damaged property. This amount will usually not exceed the actual amount spent or the total amount of insurance on the dwelling. Generally, to receive the difference between ACV and replacement cost, the insurance policy contract requires you to complete repairs or replacements within a specific period of time, usually 180 to 365 days from the date of loss. Policies may also provide an option for you to extend that time frame if you request it in writing, as outlined in the actual policy. It is important to check your policy or contact your agent or insurance company regarding the specific requirements of your insurance policy. If your insurance policy does not include replacement cost coverage (RCV), you will probably only recover the ACV of the damaged property. In most cases, if you insured your to value, you should only be responsible for paying your deductible.
If you believe your company is not offering an amount sufficient to repair or replace your damaged property, you may want to request an appraisal in accordance with the provisions in the insurance policy. Have your insurance company explain the basis for its payment and clarify if additional funds are forthcoming. It is important to review your coverage regularly to ensure that your home is adequately insured. Please read your policy or contact your agent or insurance company for more information regarding insurance coverage provided by your specific policy.
If you feel your insurance company has treated you unfairly or refused to compensate you for legitimate damages caused by the fires or wildfires in Texas, please feel free to call our offices at 713-864-1941 or toll-free at 1-877-292-8797 for a free consultation and evaluation of any potential claims you may have against them. You can also contact us through our website or email us here.