November-14-2018

RECOVERING FROM HURRICANE MICHAEL: NEXT STEPS

Hurricane Michael hit the Florida panhandle as a category 4 storm, surprising many residents and business owners with its intensity and speed. The devastation left by Michael was significant, with many cities losing entire blocks of homes and causing businesses to come to a halt. Now comes the difficult part: putting our lives back together in the wake of such chaos. This can be a daunting task, with many unsure of where to even begin, so we took it upon ourselves to do the research for you. If there is anything we missed regarding how our fellow Americans can begin recovering from Michael, please let us know so that we may add it to our post.

HOW TO HANDLE YOUR WINDSTORM/HURRICANE CLAIM:

After ruinous loss events such as hurricanes occur, insurance catastrophe response teams are sent out to mitigate losses. Ultimately, an insurance company is a business and is more interested in saving money and pleasing their shareholders than upholding their contractual promises to you, the policyholder. After a certain value is reached, these catastrophe response teams begin denying or grossly underpaying claims. We highly recommend bringing on board an insurance attorney to handle your claim and make sure you are paid what you are rightfully owed.

  1. Document Damages: We know it’s difficult seeing your home or business in a wreck; however, we recommend documenting damages prior to cleaning up, conducting any demolition, or making repairs.
  2. 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. Be sure to obtain the claims department contact information (number, fax, email, and address) as well as the contact information of your direct insurance adjuster, if applicable.
  3. 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.
  4. Complete a Proof of Loss Form: Many carriers now have a clause in their policies necessitating a Proof of Loss to be submitted for the claim to be valid. Click here for FEMA’s Proof of Loss form. Your carrier may have their own template.
  5. *Highly Recommended* Contact an Attorney: If you feel you have been wrongly denied or severely underpaid, please contact an attorney.
  6. 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 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. Document Damages: We know it’s difficult seeing your home or business in a wreck; however, we recommend documenting damages prior to cleaning up, conducting any demolition, or making repairs.
  2. Notify Your Insurer: Call your insurance agent or insurance carrier’s claims department. Click here for a list of carrier telephone numbers listed alphabetically for your convenience. Be sure to obtain the claims department contact information (number, fax, email, and address) as well as the contact information of your direct insurance adjuster, if applicable.
  3. Submit a Formal Notice of Claim: Fill out the form and submit it to your flood insurance carrier via mail, e-mail, or fax. Do NOT estimate loss or casualty. If the carrier requests an estimation, inform them you will hire a Public Adjuster or General Contractor.
  4. 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 Florida. We do not endorse or support any of the contractors or adjusters listed on the linked site.
  5. Complete a Proof of Loss Form: Many carriers now have a clause in their policies necessitating a Proof of Loss to be submitted for the claim to be valid. Click here for FEMA’s Proof of Loss form. Your carrier may have their own template.
  6. *Highly Recommended* Contact an Attorney: If you feel you have been wrongly denied or severely underpaid, please contact an attorney. The Statute of Limitations for flood claims is ONE year.
  7. 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 should 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. Again, an insurance attorney can review your policy and make sure you are in compliance.

HOW TO DETERMINE IF YOU QUALIFY FOR DISASTER ASSISTANCE PROGRAMS:

Please 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 REQUEST MORTGAGE RELIEF:

Fannie Mae & Freddie Mac are offering mortgage relief for homeowners affected by Michael. If you are affected by Hurricane Michael, you may be eligible to temporarily stop making your monthly mortgage payment for up to 12 months. Click here to find out if your loan is owned by Freddie Mac, and click here to check if your loan is owned by Fannie Mae. 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 Michael 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 Michael, you may apply for unemployment benefits online. 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.

Disaster Unemployment Assistance is available to those who:

  • Worked or were self-employed or were scheduled to begin work or self-employment;
  • Are not able to work or perform services because of physical damage of destruction to the place of employment as a direct result of the disaster;
  • Can establish that the work or self-employment they can no longer perform was their principal source of income;
  • Do not qualify for regular unemployment benefits from any state;
  • Cannot perform work or self-employment because of an injury as a direct result of the disaster; or
  • Became the breadwinner or major supporter of a household because of the death of the head of household

To file a DUA claim, click here or call 1-800-385-3920. For more information on disaster unemployment assistance, click here.

HOW TO HELP YOUR NEIGHBORS:

Consider purchasing this performance shirt from our friends, Salty Swagger in Panama City, who were affected by this disaster. 100% of the profits will go to getting good people back on their feet.

https://www.pbs.org/newshour/nation/how-to-help-those-affected-by-hurricane-michael