Published Tuesday, November 12, 2002
for filing claims
Herald Business Editor
Local insurance agents were among the first people to get phone calls Monday morning from customers living in the tornado-scarred sections of Mercer County.
While scores of homes in sections of Clark and South Pymatuning Township got hammered, agents said the overall damage from Sunday's twister is going to be far less than from those that struck May 31, 1985, tearing through Brookfield, Hubbard, Wheatland and Hermitage and Jamestown and Atlantic.
"In 1985 we had nine homes which were totally destroyed,'' said Ralph Mehler, owner of Ralph C. Mehler Inc. in Sharpsville. "In this one so far we only have two homes that are total losses.''
Like hospitals which triage victims in a disaster so that the worst injuries are treated first, insurance companies use the same strategy for damaged homes.
"Claims that will be worked on initially are homes with major or total losses,'' Mehler said. "Someone with four or five shingles off their roof will wait in line.''
To get the best service, owners of damaged houses should first try to phone their local agent and, if unsuccessful, call their insurer directly, agents said. After that, the next priority is safeguarding the home from further damage.
"Take any steps needed to prevent further damage,'' said Ken Johnston, vice president of Gilbert's Insurance Agency Inc., Sharon. "Try to get tarp up to stop further rain damage on the inside. If you can't do it, then have a contractor do it for you -- your homeowner's insurance will cover the cost.''
Gilbert's had a couple customers call Monday saying their homes were pummeled by the twister.
A contractor needs to be called to get an estimate for repairs. Most insurance companies require only one estimate, but homeowners need to be realistic on what will be covered.
"If you have six or seven shingles blown off your roof, insurance isn't going to pay to replace the entire roof,'' Johnston noted.
All labor and material costs should be included in any estimate.
Agents recommend taking photos of the damaged areas before repair work begins so that there's a record of what the home looked like. Most insurance companies have an out-of-pocket deductible for repairs, typically about $250.
In the case of heavily damaged homes, most policies will cover temporary housing needs such as hotel accommodations and food. If a house was destroyed and must be rebuilt from the ground up, an insurance company will usually try to work with customers in getting long-term accommodations such as a rental house.
Insurance companies will typically issue a check immediately or within a few days to cover immediate needs. How long an insurance company will pay for temporary housing varies, but it can be as long as a year.
Most people don't realize that homeowners insurance can cover much more than the sticker amount, agents said. For example, a $100,000 policy will not only pay that amount if a house has been destroyed, but also a percentage of that figure, usually 20 percent, for temporary accommodations, and up to 70 percent for lost contents. In this example, the total payout could hit $190,000.
"It's not like health insurance where there's a cap,'' said Todd Davis, owner of Davis Insurance Agency in Sharon. His agency had four customers with badly damaged homes.
In cases like tornadoes and hurricanes that cause extensive damage, insurers know there's going to be lots of claims. And, they want to be seen as being helpful.'
"When you have a catastrophic situation like this, they're not going to nitpick each claim,'' Davis said. "They want to get on to the next file.''
But there are limits.
Someone filing a claim saying she lost 10 fur coats will raise a red flag, Johnston noted.
"This is a business based on honesty,'' he said. "If you're fair and honest with your insurance company, that's how you'll probably be treated by them.''