10 after-the-disaster do's and don'ts

Another coverage worth adding, if you don't already have it, is sewer-backup insurance. Homeowners policies don't cover flooding -- you have to buy federal flood insurance for that. But sewer-backup insurance will cover damage caused by water that backs up, overloading the sewer system, your septic tank or your sump pump, and then flows into the house.

Check your property thoroughly as soon as possible

Inspect everything: basements, attics, backyard sheds. In particular, look carefully at the roof. Even if it looks solid, search for any evidence of leakage. Check the foundation for cracks or erosion, even if you don't have floodwater inside your house. Make sure that major systems like your furnace and air conditioner are working. Turn on all of your appliances. Make a written list of any damages you find.

It also is a good idea to corroborate any damages by taking photographs. If you have pre-storm pictures of your property and belongings, all the better. The before-and-after photographs can substantiate how much property you lost or how strong a hit your home took.

Make temporary repairs

This will prevent further damage to your property. For example, if the storm smashes a picture window, do what you can to cover the opening. "If an adjuster looks at your house after the storm passes and sees that you made a good effort to mitigate further damage, he or she is more likely to approve the claims you make," Walsh says.

But stop short of removing evidence of the damage. If the insurance adjuster can't see what happened, he's unlikely to take your word that it did.

And as much as you'd like any help, don't accept the services of companies that drive through damaged neighborhoods immediately after a disaster and offer to remove fallen trees or quickly reroof. These services may seem tempting, says Carolyn Gorman, a vice president of the Insurance Information Institute, but catastrophes bring scam artists out of the woodwork.

Plus, the services that many of these opportunistic companies offer, such as tree removal, are usually performed free of charge by Federal Emergency Management Association teams. You can find a description of other FEMA services online.

Be wary

Give your agent the phone numbers and addresses where you can be reached day or night. When an adjuster contacts you, ask for identification. Do not permit an adjuster to inspect your property without proper identification.

Thieves have been known to use this ruse to get inside homes.

Be prepared

When the adjuster shows up, have available evidence of your loss, including itemized lists, appraisals, videos, still photos, receipts -- whatever you can muster to prove what you owned and what it's worth. Don't settle for less.

It can be a blessing if your insurance company sets up an emergency-claims office in the area and offers to settle partial claims on the spot. This is a practice of many large insurance companies experienced in disaster management. But don't jump at immediate relief. Occasionally, a less scrupulous insurer will try to slip in language on a small settlement that states the payment is a full satisfaction of the company's liability.

And be careful of anything you sign, warns Walsh.

"Under those circumstances, most major companies won't require that you sign anything other than endorsing the check," says Walsh.

Even before you do that, make sure that there isn't language on the back of the check that prevents you from making further claims.

Don't jump at the first offer

You don't have to accept the first settlement your insurance company offers. If you don't think a settlement is enough, go back and look over your policy. Read the coverage limits for various types of structures and personal possessions and check how the insurance company is applying each type. Talk to the claims adjuster. If he doesn't provide satisfaction, go higher.

"If you're sure you're right, don't take no for an answer," says Gorman.

If all else fails, file a report with your state insurance department.

"In a disaster situation, no company wants the state insurance department breathing down its neck," says Gorman.

It's possible that your policy limits you to rebuilding exactly the same house in exactly the same place. Many policies don't. Consider whether you want to use this opportunity to move to a condominium, or pick up stakes and sail around the world.

Get help

Filing any insurance claim generally is a do-it-yourself task. In most cases, that's not a problem -- as long as you are dealing with a reputable insurance company and you are reasonably assertive and willing to stay on top of the claim.

But if you're unable to be near the property, or the claim is complicated or you're not well, you might consider hiring a licensed public adjuster. At a cost of about 10% of the claim, such an adjuster can read over your policies, submit the paperwork and follow up on any problems.

Vet the repair services

Your insurance company may offer to waive a deductible if you're willing to work with a contractor it recommends. While this can be a good thing, Walsh warns that it can also lock you into hiring a company whose work doesn't meet your standards.

Whether you go with the insurer's choice or find somebody on your own, don't be in such a rush that you neglect to check references or sign on the dotted line for work you don't want. And if the insurance company is paying the repair company directly, don't sign anything that approves payment until the work is completed to your satisfaction.

Continue to be vigilant

Even after you've submitted a claim, stay on the lookout for damage that may take weeks to appear.

Storms sometimes trigger things such as sinkholes and other earth movement that occur days or months later. And foundations of houses may shift or settle weeks after flooding. But don't let too much time pass. Find out your policy's time limit on making claims, and meet that deadline.

Updated July 14, 2009

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