August-30-2017

RECOVERING FROM HARVEY: NEXT STEPS

Harvey may have been relentless, but so is the strength, kindness, and compassion of our communities. As the sun continues to shine over Texas, it is time for those of you whose homes or businesses were impacted by the storm to begin restoring your lives. After all, we are Texans, and we always persevere. In addition to Harvey, one thing to keep in mind is the new Texas Hail Bill (HB 1774 – please review our previous post which highlights how this bill affects policyholders) which went into effect September 1, 2017. We understand that worrying about these trivial matters are not currently on most of our minds, especially considering there are those of us who have to recover from a total loss and those of us who are diligently volunteering at shelters, so we took it upon ourselves to do the research for you. If there is anything we missed regarding how our fellow Texans can begin recovering from Harvey, please let us know so that we may add it to our post.

NOTE: Texas Insurance Code 542A (added by HB 1774) doesn’t apply to National Flood Insurance Program (NFIP) or Texas Windstorm Insurance Association (TWIA) policies. It does apply to homeowner’s insurance (wind / storm), as well as automobile & trailer home flood insurance policies.

HOW TO DETERMINE WHAT KIND OF ASSISTANCE YOU’LL NEED:

Please click here to complete a federal questionnaire that will provide you with all the disaster relief programs you may qualify for. You may apply for FEMA at the conclusion of the questionnaire.

HOW TO HANDLE YOUR FLOOD CLAIM:

Click here to view FEMA’s National Flood Insurance Program Fact Sheet. Please note: you may retain an attorney to assist you with your claim at any point throughout the claims process. It will not affect your claim in any way other than having the burden off your shoulders and under the care of expert attorneys.

  1. Notify Your Insurer: Call your insurance agent or insurance carrier’s claim department. Click here for a list of carrier telephone numbers listed alphabetically for your convenience.
  2. Submit a Formal Notice of Claim: If you file your claim on or after September 1st, please do not skip this step. Click here to download a template.
  3. Hire a Public Insurance Adjuster and a Contractor: Be sure to hire a public insurance adjuster well versed in flood estimates. Be sure to hire a contractor well versed in water damage and catastrophe cleanup/repair. Ask for their experience and credentials. Please click here for a list of a few water damage contractors from Harris County, Texas. We do not endorse or support any of the contractors or adjusters listed on the linked site.
  4. Complete a Proof of Loss Form: Please click here to download a template. Be sure to submit this form with your adjuster’s estimate.
  5. *Highly Recommended* Contact an Attorney: If you feel you have been wrongly denied or severely underpaid, please contact an attorney. You may have a case against your carrier under the Texas Insurance Code and the Deceptive Trade Practices Act under the Texas Business and Commerce Code. Please click here for our breakdown of these laws to see how they may apply to you.
  6. Submit a Formal Appeal to FEMA: A written appeal letter must be sent to FEMA within 60 days of your insurer partially or fully denying your claim, along with a copy of the denial letter and any supporting documentation. Please note: once you file a lawsuit, you may no longer appeal your claim to FEMA. Do not let this scare you into avoiding legal counsel. Retaining an attorney does not take that privilege away from you, only filing a lawsuit will. Your attorney will discuss all options with you prior to filing.

Insurance policies typically obligate policyholders to mitigate damage throughout the claims process. Be sure to comply with your policy at all times, even when disputing recovery amounts.

HOW TO HANDLE YOUR WINDSTORM CLAIM:

If you reside in coastal territory, you may have a Texas Windstorm Insurance Association (“TWIA”) policy. If so, click here to download a guide to TWIA’s claims process and resolution of disputes.

  1. Notify Your Insurer: Call your insurance agent or insurance carrier’s claim department. Click here for a list of carrier telephone numbers listed alphabetically for your convenience. Click here for TWIA’s claim reporting checklist.
  2. Hire a Public Insurance Adjuster and a Contractor: Be sure to hire a public insurance adjuster well versed in high wind estimates. Be sure to hire a contractor well versed in high wind damage and catastrophe cleanup/repair. Ask for their experience and credentials.
  3. *Highly Recommended* Contact an Attorney: If you feel you have been wrongly denied or severely underpaid, please contact an attorney. You may have a case against your carrier under the Texas Insurance Code and the Deceptive Trade Practices Act under the Texas Business and Commerce Code. Please click here for our breakdown of these laws to see how they may apply to you.
  4. Invoke Appraisal: You may invoke appraisal to dispute the amount your insurance carrier offers to pay for your loss. Please consult with an attorney prior to invoking appraisal. Please note: appraisal decisions are binding and not easily disputed.

Insurance policies typically obligate policyholders to mitigate damage throughout the claims process. Be sure to comply with your policy at all times, even when disputing recovery amounts.

HOW TO REQUEST MORTGAGE RELIEF:

Fannie Mae & Freddie Mac are offering mortgage relief for homeowners affected by Harvey and Irma. If you are affected by Hurricane Harvey or Irma, you may be eligible to temporarily stop making your monthly mortgage payment for up to 12 months. You must contact your mortgage service provider (the company where you send your monthly payments) as soon as possible. If you have difficulty contacting your mortgage services, contact the Homeowner’s HOPE hotline at 1-888-995-HOPE (4673) for assistance and FREE confidential support from a HUD-approved housing counselor.

HOW TO CLAIM A LOSS ON YOUR TAX RETURN:

Taxpayers who have suffered an economic loss due to Harvey may claim a casualty loss deduction. A casualty loss is defined as the damage, destruction, or loss of your property from any sudden, expected, or unusual event.

To claim a casualty loss on your return, you must itemize your deductions using Schedule A, Itemized Deductions (click here to download the form). You’ll report the loss on line 20 of that form. To calculate this number, you’ll need to use Federal Form 4684, Casualties and Thefts (click here to download the form). On Page 1-Part A, you’ll report any damage or loss of personal-use property like your home or car. On Page 2-Part B, you’ll report any damage or loss of business or income-producing property.

If only personal-use property applies to you, or if your property was not completely destroyed, the amount of your loss is the lesser of your adjusted basis or the decrease in fair market value of your property because of the damage. Typically, your basis is what you paid for the item plus any long-term improvements (i.e., additions).

HOW TO APPLY FOR DISASTER UNEMPLOYMENT ASSISTANCE:

If you lost your job because of Hurricane Harvey, you may apply for unemployment benefits online. Please click here to apply. The Disaster Unemployment Assistance program provides benefits for individuals who lost their jobs or self-employment or who are no longer working as a direct result of a major disaster for which a disaster assistance period is declared, and who applied but are not eligible for regular unemployment benefits.

Eligibility-

  1. You lost your job, which was more than 50% of your total income.
  2. You live in, work in, or travel through the disaster area.
  3. Your place of employment was damaged or closed.
  4. You were scheduled to start work but the job no longer exists or you can longer reach the new job.
  5. You suffered injury or incapacitation.
  6. You became the breadwinner or major support of the household due to the death of the head of household.