The first thing you’ll need to do, of course, is call your insurance company, even if it is in the middle of the night.  Typically, your agent will offer to contact a company that specializes in emergency clean-up to come in and stabilize the home (mop up the water, board up the windows and put a tarp on the roof.) It is very important to know that you are NOT obligated to use the insurance company’s choice of vendor.  It is your choice to select a restoration company that YOU feel comfortable with.  The insurance company may try to force your hand, or “scare” you into using their preferred vendor.  They are not legally allowed to do this, nor are they legally entitled to withhold monies or offer you a reduced dollar amount for choosing your own vendor. Your insurance agent will also recommend a motel, and send out a loss agent (typically the next day) to do an initial assessment.

The loss agent will take lots of pictures of the damage, sometimes seeming excessive. But don’t be surprised if they miss something. Buckled floors due to water damage may not show up for a few days, so by all means, do your own documenting as well. This person will then go back to the office and review your policy to determine what coverage you have for immediate needs, living expenses, rebuilding expenses, personal loss expenses and so forth.

Remember that insurance is never a ‘one size fits all’ sort of thing.  It’s the homeowner’s responsibility to make sure coverage fits your individual needs, such as that boat or antique car parked in the garage — which are extra. A room addition that was not in the original insurance package, he noted, may not be covered either, unless you’ve added the extra square footage to your contract.

However, what homeowners are most unprepared for is the inventory (of items lost in the fire). It’s the burden of the customer to show proof of loss. (Tip: Keep your inventory on a Quicken program stored on a disc at your office, or a safe deposit box works. This can be done in advance of any emergency, complete with digital pictures or video of your homes contents, updating records as needed.)

Homeowners should know what their insurance policy pays for — replacement costs if replaced new at time of loss — versus actual cash value. That means, if you’ve had your carpet or roof for 10 years, your insurance company will typically pay only for the depreciated value, not what you spent for it. You may have to spend time searching through thrift stores or used furniture stores to find a comparable piece of furniture to help you set a replacement value or chances are you’ll get stuck with a garage sale value they use.

Disaster Restoration Companies
 
Disaster restoration crews are cross-trained to deal with ozone, asbestos, crime scene, and fire, as well as water damage.

The most immediate concern after any fire is to stop the damage from getting worse. Typically, you have a 72-hour window to remove smoke from fabric before it becomes saturated. Therefore, the disaster restoration crew’s first priority is to come in and remove all linens, curtains, clothing, fabric-covered furniture, even lamp shades and have them cleaned as soon as possible.

You may be asked to provide a list of items that you need back right away — personal items which you use daily; sheets, towels, clothes, and essential kitchen items for your now ‘nomad’ lifestyle.. These items get cleaned and returned right away.

Sorting everything you own into piles of what is worth cleaning and keeping and what is not can be a difficult task. The restoration crew will help empty out the house in preparation for the demolition and reconstruction phase. They still need to determine if that cost — versus tearing down the house and putting up a trailer — would be more feasible.  Demolition and rebuilding could take three to six months of displaced living.

Build Back to Code

Dealing with an older, turn-of-the-century home that does not meet code can be your biggest consternation. We suggest updating your homeowner’s insurance policy regularly to include a rider that covers the cost of bringing your home up to current building code requirements.

When damage to one area of your home requires replacing old wiring that does not meet current codes, individual county ordinances may require the rest of the home’s wiring be brought up to code too. (Same applies for plumbing, window sill height and fire blocks.)

Those changes are not cheap. Code upgrade is not something your insurance company typically tells you about, but it is something everyone should have.  Therefore, it’s also a good idea to check with your local building department about what permits and code improvements they require.

Finding a Contractor

Typically you have a few days to figure out who you want to do the repairs.  If your are lucky, you will find a restoration company that also specializes in the repairs and reconstruction of your home.  If this is the case, consider yourself lucky that you do not have to deal with a number of different companies to return your life to order.  Many restoration companies do not offer this service.  Be sure to ask them, and base your decision on their answer.  If you hire a company that does not offer reconstruction services, to find a good contractor, ask someone you know who has had work done recently. Get three bids, and if possible, ask for ‘fixed price’ ones rather than ‘time and material bids.’ Get this information in writing, not just verbally. A contractor will be more conscientious of the number of trips to go get parts when paid a fixed price, rather than by the hour.

Homeowners are looking at an average of $130 to $150 a square foot for construction costs in today’s market. Older homes could even be more to restore to ‘before fire’ condition, as the quality of materials used in older homes are often hard to find today.