Tips from Better Than Before restoration

Homeowner Insurance policy tips:

Graphic of a young woman sitting on her back porch, reviewing her homeowners insurance policy.

Understand your homeowner Policy

Did you know?
Many homeowners policies do not cover flood damage, requiring separate flood insurance for full protection. Same goes for Earthquake damage.

Understand Your Policy:
Familiarize yourself with the specifics of your homeowners insurance policy. Know what types of damage are covered, such as fire, storm, or water damage, and understand any exclusions. This knowledge will prepare you for what to expect during the claims process and help you avoid surprises. Many of the agents we work with welcome a review of your policy. If you have questions, don’t hesitate to reach out to them!

At Better Than Before Restoration, we have on staff a former insurance agent and a Licensed Property Adjuster. We have a good idea of what to look for when you have damage to your home, but the details of your policy is best to be reviewed with your insurance agent.

Graphic of an older gentleman looking at his laptop containing photos he uploaded for his insurance policy.

Document Everything

Did you know?
Detailed documentation can expedite the claims process by providing clear evidence and reducing back-and-forth with your insurer.

Document Everything:
Keeping meticulous records is crucial. Save all communications with your insurance company, including emails, letters, and phone call logs. These records can serve as evidence if any disputes arise and ensure that you have a clear timeline of the claims process.

Side Tip:
Document everything before a claim. As an insurance agent, I would always tell my policyholders to video and/or take photos of everything they own. Think about it. How hard would it be to list everything you own by memory if you were to have a complete fire loss? Also, be sure to take pictures of serial numbers from your items if available.

Graphic of a young couple devastated over a recent water leak in their kitchen.

Mitigate further damage

Did you know?

Failure to take immediate action to mitigate damage can result in reduced claim payouts or even denial of your claim.

Mitigate Further Damage:

To prevent additional loss, take immediate steps to protect your property. This might include covering a damaged roof with a tarp or shutting off the water supply to stop a leak. Insurance companies expect homeowners to act responsibly to minimize further damage.

Side note:

Many policies do not cover mold anymore. If a water leak has been going on awhile, it is possible that could be looked at as a slow and repeated instance and not a sudden and accidental discharge of water. An area that is affected by water for an extended period of time can develop mold eventually giving evidence of extended water leaking over time.

Mold needs 3 main things to produce and grow. 1.) moisture, 2.) absence of light, and 3.) a food source like wood, drywall, and/or clothes.

It is advisable to take prompt action to stop the leak and clean up what you can. If the amount of water is too much, a water mitigation company can help. You can call Better Than Before Restoration to help guide you through the process.

Graphic of a gentleman reviewing receipts he obtained while dealing with a claim on his homeowners insurance.

Keep receipts

Did you know?
Most homeowner insurance policies include coverage for additional living expenses (often referred to as ALE), which can cover costs like hotel stays and meals if your home is uninhabitable.

Keep Receipts:
Save all receipts related to temporary repairs, cleaning, and additional living expenses incurred due to the damage. These costs may be reimbursable under your insurance policy, so detailed records are essential.

A young woman surprised at realizing she has a high deductible after seeing her homeowner policy.

know your deductible

Did you know?

Higher deductibles can lower your premium, but they also increase your out-of-pocket expenses in the event of a claim.

Know Your Deductible:

Be aware of your policy’s deductible before filing a claim. Understanding your out-of-pocket costs can help you decide whether it’s worth filing a claim or handling the repair costs independently. Once you file a claim with your insurance, in our experience, there is typically no reversing it.

Side note:

Ask your agent if you have a claims free discount tied to your policy. If you do, this discount could go away once you file a claim, even if the insurance company doesn’t pay you a dime towards the repairs. The result is a higher premium. It’s worth calling a contractor like Better Than Before Restoration to see what their thoughts are before filing.

A young couple sits at their kitchen table reviewing their homeowners policy, unsure of what it all means.

Understand claim types

Did you know?

In the event of a covered claim, even if you have a Replacement Cost Value Policy, you may only get the Actual Cash Value if you choose not to repair the damages that were a result from the covered peril.

Understand Your Claim Types:

Know whether your policy covers actual cash value (ACV) or replacement cost value (RCV). ACV policies consider depreciation, while RCV policies cover the cost of replacing damaged items with new ones. This distinction can significantly impact your settlement amount.

Side note:

An insurance adjuster will likely pay out the ACV amount in one check. Then, once the repairs are finished, a separate check for the recoverable depreciation will be paid. If a mortgage is involved, then likely those checks will go to the mortgage company and they will disperse funds according to their policy.

Graphic of a young man that is upset after realizing his home is not insured for what it would take to build it back.

Understand policy limits

Did you know?

Failing to update your policy after renovations or major purchases can leave you underinsured and vulnerable to significant out-of-pocket expenses. Your policy may only cover a fraction of what it actually cost to build back.

Understand Policy Limits:

It is extremely advisable to meet with your agent at least once a year to review your policy. They can help you understand how much your home is insured for, the limits on your contents, and what liability coverage you have. And, as suggested above, make them aware of any updates you are making and/or have made to your home so they can adjust accordingly.

Many homeowners don’t realize that a lot of policies might not automatically update your coverage amounts over the years. As an example: you bought a home in 2014 and got an insurance policy that covers your home for up to $150,000. That $150,000 is the limit in which insurance will pay out if your home experiences a total loss, such as being completely demolished in a storm, a fire, or another covered peril, and you had to completely rebuild your home. Now, 10 years later in 2024, the cost to rebuild a home is absolutely not the same as it was in 2014.

There has to be an adjustment to this limit or else you are UNDERINSURED.

It is estimated that 64% of homes are underinsured, according to CoreLogic’s Residential Cost Handbook. It’s worth taking a look at your policy limits with your agent if you wish to build your home back at the size and like materials that you have today.

Side note:

Cost to build back is not the same as the market value. You can have a house that is in a neighborhood on an acre of land in Florence, AL and the market value of the home is not the same as the same exact house in Florence that is on the river with 5 acres of land. Same cost to build back the home, but selling both would be a totally different number.

Graphic of a young man setting up a ladder at his home in order to trim back a limb that is on his house.

maintain your home

Did you know?

Routine maintenance, such as cleaning gutters, inspecting roofs, trimming back limbs, cleaning your dryer vent, and replacing your water heater in a timely manner, can significantly reduce the likelihood of costly damage from fires, storms or water leaks.

Maintain Your Home:

Regular maintenance of your home can prevent many issues that lead to insurance claims. Keeping your home in good repair demonstrates to your insurance company that you are a responsible homeowner, which can be beneficial in the claims process.

Side Note:

Sometimes claims get denied because it could be determined that damage is a result of a maintenance issue as opposed to a covered peril. As an example, you may be having a water leak coming from your roof after a major storm, but it is simply because you have a pipe boot that is around a vent stack that has rotted out over time, causing the rain to flow in your home. It should have been replaced and going on your roof, or having a professional inspect, at least once a year is beneficial in identifying circumstances like this.

Graphic of a house, in heavy rain, flooding

Understand exclusions

Did you know?

Every insurance company has exclusions on their homeowner policies. Knowing these exclusions can help you understand what to expect if you are thinking about filing a claim and will help you plan accordingly.

Understand Policy Exclusions:

Common exclusions are neglect, normal wear and tear, slow and repeated water leaks, mold, flooding, and earthquake. Some damage to your home can be looked as a maintenance issue and not a covered peril on your policy. Your responsibility as a homeowner is to understand exclusions on your policy and maintain your home to help prevent damage resulting from these type issues.

Side note:

A homeowners insurance policy isn’t a “cover any damage to your home” policy. It’s possible that your company has a rider that can be added to cover things like flood, earthquake, etc., but otherwise damage resulting from these events aren’t likely covered.

A homeowners insurance policy is also not a maintenance plan. It should be more looked at like a catastrophic plan that covers damage that result from a list of perils. These perils can be found in your policy.

A lot of inspections we do is a result of a homeowner not really knowing the difference. They see their floor starting to get “soft” and sink down later to find out that the slow water dripping under their kitchen sink that was never fixed caused the subfloor to rot. Or they see a stain on their ceiling near an exterior wall only to discover their gutters are full of debris causing water to back up and flow into the interior. Another example is an overgrown tree with limbs touching the roof that eventually causes damage to the shingles.

Talk to your agent about what is covered and what is not. It will save you a headache in the future.

Let’s build back your home better than it was before

Service Locations

Northwest Alabama and Southern Middle Tennessee

Phone

(256) 740-FIRE

Email

claims@btbrestoration.net