TL;DR
A house fire survivor shares hard-learned lessons: Read your insurance policy like a hawk, beware of predatory restoration companies, get a PO box immediately, and don’t wait to submit receipts for replacement costs.
Story
“Imagine everything you own turning to ashes overnight. That’s what happened to me five years ago. Now, let’s talk about how to navigate this financial and emotional catastrophe, because insurance companies aren’t exactly your best friends in these situations.
First, your insurance policy is like a treasure map, but it’s written in a secret code. You have ‘coverage’ for relocation, stuff (contents), and rebuilding (structural), but figuring out how much you actually get is like solving a riddle. Don’t assume anything. Read every single line.
Relocation is key. It pays for you to live somewhere else while your house is rebuilt. But there’s a catch: it might have a limit. If rental prices are sky-high, that limit might not be enough. Imagine having to pay your mortgage AND inflated rent—a double whammy. After the fire, I learned the hard way and maxed out our coverage. Lesson learned: Get unlimited relocation coverage if you can.
Next, your belongings. It’s like trying to remember every single toy you ever owned. It’s impossible! And that’s where those ‘restoration’ companies swoop in like vultures, promising to ‘save’ your stuff. Don’t fall for it. They charge outrageous fees for cleaning soot-covered socks—we’re talking $5 a pair! Most things are a lost cause. My advice? Find a good dry cleaner yourself for anything truly irreplaceable. These companies prey on your vulnerability, trying to max out your ‘contents coverage,’ which is a fixed amount for replacing your stuff.
Now, the rebuilding process. Your mortgage company gets involved because their name is on the insurance checks. It’s like they become co-owners of your burned-down house. So, be prepared to work with them. And remember, those ‘replacement cost benefits’—the money to replace your stuff—have an expiration date. Don’t wait until the last minute to submit your receipts, or you’ll be left with nothing.
And one final tip: get a PO box the moment disaster strikes. Otherwise, missed bills can wreck your credit, even if the post office is ashes. Trust me, I know from experience.”
Advice
Always document your belongings (videos, photos, lists). After a disaster, skepticism is your best friend, especially with restoration companies. Treat your insurance policy like a contract, and be prepared to fight for every penny you’re entitled to.