What to Do If You Lose Your Home: Practical Tips for Navigating Insurance and Recovery

The loss of a home is a devastating event, but with the right steps, you can navigate the recovery process more smoothly. Having worked through this process with friends, family, and clients, I can confidently share these practical tips to help guide you during this challenging time.

One important note: Be cautious about hiring companies that claim to “represent you” when dealing with your insurance company. These companies, known as Public Adjusters, often take a significant portion of your claim payout as their fee. While there can be a time and place for their services, they’re not always necessary. In most cases, your insurance carrier will act in good faith, especially if you’ve got a trusted Independent Insurance Broker, like UWIB Risk, in your corner.

In our case, we received everything we were entitled to from our insurance company without the need for outside help.

Key Steps and Considerations

1. Understand Your Insurance Policy Coverage

Most homeowner policies include three main categories:

• Relocation Coverage: Covers temporary housing expenses.

• Content Coverage: Covers personal belongings.

• Structural Coverage: Covers rebuilding costs.

Check your policy for relocation coverage limits. Some policies may cap coverage at a set amount, while others may offer unlimited coverage. Unlimited relocation coverage can be invaluable since you’ll need to pay your mortgage while also covering rental costs during the rebuilding process. If your policy has a limit, factor this into your budget when securing temporary housing.

If you live in an HOA, your policy may also cover HOA dues until you return home—but don’t expect your insurer to point this out. Talk with your agent and carefully read through your policy. With AI tools like ChatGPT, Gemini, or Copilot, you can identify every benefit to which you’re entitled.

2. Secure a Mailing Address Immediately

Set up a P.O. Box or hold your mail for pickup. This ensures you won’t miss important bills or communications. Even with perfect credit, one family missed a credit card payment simply because they didn’t have a mailbox. Unfortunately, this oversight impacted their credit score. Don’t let this happen to you.

3. Work Closely with Your Adjuster

Your insurance adjuster can make or break your experience. Ensure they issue a check within 48 hours for immediate needs, like clothing or toiletries. Save every receipt for anything you purchase during this time, as you’ll need these for reimbursement.

4. Beware of Predatory Restoration Companies

Be skeptical of mold remediation or restoration companies that contact you after a fire. These companies often access fire reports, know you have insurance, and may claim your insurer sent them (a common lie). They can charge exorbitant fees for cleaning items that may be beyond salvaging.

For instance, a friend was charged $5 per pair of socks and $500 for a throw blanket—none of these items could be properly cleaned or restored. Restoration companies can quickly deplete your contents coverage limit. Instead, consider using a reputable dry cleaner for items you hope to save.

5. Maximize Your Policy Benefits

As you rebuild, your mortgage company will likely be named on insurance checks related to structural coverage. Communicate in advance with your mortgage provider to understand and agree on the process to avoid delays.

Final Thoughts

Having been through this experience, we understand how overwhelming the aftermath of losing a home can be. By understanding your policy, advocating for yourself, working closely with a reputable insurance broker, and staying vigilant, you can navigate this challenging time with fewer setbacks.

If you need help or have questions, don’t hesitate to contact us. We’re here to support you every step of the way.