Most Common Mistakes to Avoid When Filing a Flood Insurance Claim

Florida Flood Insurance Claims

Experiencing a flood can be devastating, and filing a flood insurance claim can be overwhelming. Unfortunately, many homeowners make common mistakes during the claims process that can result in delays, denials, or underpaid claims. By understanding these mistakes and how to avoid them, you can ensure that your claim is processed smoothly and you receive the compensation you need to rebuild.

Here are the most common mistakes to avoid when filing a flood insurance claim:

Failing to Document Damage Properly

One of the biggest mistakes homeowners make is not properly documenting the damage caused by the flood. Insurance companies require detailed evidence to process claims, and incomplete documentation can lead to delays or denials.

How to Avoid This Mistake:

  • Take Photos and Videos: Before starting any cleanup or repairs, thoroughly document the damage to your property with photos and videos. Capture damage to the structure, personal belongings, and any areas where the floodwaters entered your home.
  • List Damaged Items: Create an inventory of all damaged personal belongings, including the estimated value of each item. If possible, keep receipts to prove the value of high-ticket items.
  • Don’t Discard Damaged Items: Hold onto damaged items until your insurance adjuster has had a chance to inspect them.

Delaying Your Claim

Flood insurance policies, typically through the National Flood Insurance Program (NFIP), have specific time limits for filing a claim. Delaying your claim can lead to complications or even denial.

How to Avoid This Mistake:

  • File Your Claim Promptly: As soon as it is safe, contact your insurance company to report the damage and begin the claims process. Many policies require that claims be filed within a certain number of days after the flood event, so don’t wait.
  • Check Filing Deadlines: Review your flood insurance policy to understand the specific deadlines for filing your claim and submitting documentation.

Not Reviewing Your Policy Before Filing a Claim

Before you file a flood insurance claim, reviewing your policy to understand what is covered and what isn’t is crucial. Many homeowners assume that standard homeowners insurance policies cover flood damage, but this is not the case. Flood damage is typically covered only by a separate flood insurance policy, often provided by the National Flood Insurance Program (NFIP) or a private insurer.

Mistakes to Avoid:

  • Assuming You’re Covered: Don’t assume that flood damage will be covered under your homeowners’ insurance policy. Make sure you have a separate flood insurance policy in place.
  • Not Knowing Your Coverage Limits: Review the limits of your flood insurance policy, including coverage for the structure of your home and personal belongings.

Making Permanent Repairs Before the Adjuster Inspects

Many homeowners make the mistake of starting permanent repairs before the insurance adjuster inspects the damage. This can result in disputes over the extent of the damage and the payout.

How to Avoid This Mistake:

  • Wait for the Adjuster: Do not permanently repair until the adjuster inspects and documents the damage. However, you can make temporary repairs to prevent further damage, such as tarping roofs or boarding up windows.
  • Keep Receipts for Temporary Repairs: If you make temporary repairs, keep receipts for all materials and labor, as these costs may be reimbursable under your policy.

Not Keeping Track of Additional Living Expenses (ALE)

If your home is uninhabitable due to flood damage, you may be entitled to additional living expenses (ALE), such as temporary housing, meals, and transportation. Failing to keep track of these expenses can result in missed reimbursements.

How to Avoid This Mistake:

  • Document ALE Carefully: Keep detailed records of all expenses related to living away from home, including hotel bills, restaurant receipts, and fuel costs. Save all receipts and indicate the dates and amounts spent.
  • Check for ALE Coverage: Not all flood insurance policies automatically cover ALE, so check your policy to see if this coverage is included. If not, you may need to file under a separate homeowners insurance policy.

Overlooking Hidden or Long-Term Damage

Flood damage isn’t always immediately visible, and failing to account for hidden damage can lead to costly repairs. Issues like mold growth, foundation shifts, or electrical damage may not be obvious right after the flood but can become serious problems later.

How to Avoid This Mistake:

  • Conduct a Thorough Inspection: After the floodwaters recede, have a licensed contractor, plumber, or electrician inspect your home for hidden damage. They can identify problems that are not immediately visible, such as wall moisture or structural damage.
  • Document Long-Term Risks: If you discover hidden damage or long-term risks, document them thoroughly and present them to your insurance company. This can help ensure that your claim reflects the full extent of the damage.

Accepting the First Offer Without Review

Insurance companies may offer a quick settlement, but the first offer is often lower than needed to repair or replace the damage fully. Many homeowners make the mistake of accepting this initial offer without reviewing the details.

How to Avoid This Mistake:

  • Get Independent Estimates: Before accepting an insurance offer, get independent estimates from contractors to determine the actual cost of repairs. Compare these estimates with the insurance company’s offer to ensure fairness.
  • Negotiate if Necessary: Don’t be afraid to negotiate with your insurance company if the initial offer doesn’t cover the full cost of repairs. You can request a higher payout if the damage assessment is incomplete.

Not Seeking Professional Help When Needed

Flood insurance claims can be complex, especially when disputes arise over the cause of the damage, coverage limitations, or the extent of repairs needed. Many homeowners try to handle claims independently and end up with underpaid settlements.

Consult an Insurance Attorney for Disputes: If your claim is denied or if you believe your insurance company is acting in bad faith, consult with Williams Law, P.A., insurance claim attorneys. We can help you navigate the process and fight for the compensation you’re entitled to.

Fight Back Against a Denied Flood Insurance Claim

A denied flood insurance claim can be frustrating, but it doesn’t have to be the end of the road. Understanding the reasons for the denial and taking the appropriate steps to appeal can increase your chances of getting the compensation you deserve. Whether it’s gathering more evidence, filing an appeal, or hiring a lawyer to represent you, there are options to fight back.

If you’re facing challenges with your flood insurance claim or need assistance with a denial or low settlement, contact Williams Law, P.A. today for a free consultation. Our experienced team is here to help you get the compensation you deserve and protect your rights.