Home Insurance Forum

Sep. 13, 2007

I recently had a fire in my home. Extensive damage is present, both structural and personal items. What is the entire procedure from the claim process to renovation of my home? Who hires the contractor? Do I need an engineer to draw plans? What role does my insurance company have in repairs? What do fire restoration companies do? What is the typical timeline for the entire procedure? What is my role?

Rich, New York

Dear Rich,

I spoke with Maurice Morgenstern, assistant bureau chief for homeowners insurance at the New York Department of Insurance. Morgenstern says that the first step is to make sure you prevent any additional damage from happening to the house. So, if you haven't already done so, you may need to board up the windows or secure a tarp over a hole in the roof.

Next, you'll need to notify your agent or your insurance company, who should then guide the rest of the claims process.

An adjuster will come to your house to examine the damage and give you an estimate on how much the insurance company is willing to pay.

From there, says Morgenstern, you can either accept that amount or, if you think the estimate is too low, hire a public adjuster. Keep in mind that a public adjuster will take a percentage of your claim.

Hiring a public adjuster might stretch the process out, since it will take time to reach an agreement if your adjuster's and the insurance company's adjuster's estimates of the damage vary widely. However, let neither the time nor the cost stop you from hiring your own adjuster if you feel the insurance company's estimate is much too low. For more, see our story on how public adjusters can level the playing field for you.

Then you'll need to choose a contractor. Your insurance company will probably offer the name of a contractor in your area but "ultimately, the homeowner has final say on who the contractor will be," says Morgenstern.

A contractor can tell you if you need an architect to draw up plans for rebuilding your home or whether a fire restoration company — which repairs damage done to walls, carpets, furnishings, and possessions by fire, smoke, and water — will be of any use.

Morgenstern says you'll want to stay as involved as possible. "It is your home and your belongings," he says. "You'll want to be involved at every step so you can make sure that you get back to where you were as quickly and as satisfactorily as possible, even if you hire someone to represent you."

You'll want to consult the insurance company on issues as soon as they occur, not weeks later. If you can't get an issue settled to your satisfaction, call the New York Department of Insurance's consumer services homeowners bureau at (800) 342-3736.

Morgenstern notes most home insurance policies contain a provision that says that claims will be paid within 30 days of proof of loss. Additionally, Morgenstern says that if you aren't able to live in your house as a result of the fire, your insurance company will pay for additional living expenses. Check your policy to see what the limits on those expenses are.

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Disclaimer: We are journalists, not financial planners or insurance brokers. Nothing we say should be interpreted as a recommendation to buy or sell any insurance product, or to provide other financial or legal advice.