BUZ LIVINGSTON: Trying to reason with hurricane season
In 1976, to escape South Georgia’s brutal heat and humidity, I snagged a job in Northwestern Wyoming. For roughly six months, I shared a bunkhouse with five other men in Jackson Hole just south of the Hoback/Snake River Junction.
For recreation we had a lot to choose from, but temptation being what it is, I often found myself at the Fish Creek Inn in nearby Wilson. To drive recalcitrant crowds home, the proprietor Blackie would cue up Gene Autry’s American classic “Good Night, Irene” and flip the lights on.
For South Walton, Hurricane Irene took a fortunate turn up the East Coast. Take time to review your current policy and make sure it covers your home appropriately. Be aware flood claims may be difficult to co-ordinate with wind claims. Automobile comprehensive coverage extends to damage caused by wind and flooding.
The market value of a home is not a consideration, rather the cost to replace the dwelling. Ordinance coverage will cover any code upgrades. Before the storm, take digital pictures of your home, personal property and automobiles. Email them to a trusted third party.
After a storm, take reasonable steps to limit additional loss of personal property and further damage to the structure. Report damages to the agent and/or insurance company as soon as possible. Document all expenses; living expenses may be covered under your homeowners policy but not if the loss is solely from flooding. Do not expect the insurance company to contact you directly until a week or longer after the storm. For a storm with widespread damage, anticipate longer delays.
An appraiser will verify your loss, but expect the cost of construction to increase greatly. Settlement with the insurer will be by negotiation. Most claims are resolved equitably, but not all. A policyholder can hire a public adjuster to help in negotiations. Florida’s Department of Financial Regulation manages a non-binding mediation process between policyholders and insurers. Many insurance policies allow for a binding “appraisal” process where each party selects an appraiser. The two then choose an umpire and the majority rules.
Huge disasters overwhelm the system. Insurance companies don’t have enough experienced adjusters on staff so new and inexperienced ones are thrown in the breach. Be patient, they may be as stressed as you. They could have family members with homes damaged, too.
A few rules of thumb from an experienced adjuster: Any loss is subject to a great deal of subjectivity. There is a maximum legitimate loss, a minimum legitimate loss and the difference can be dramatic.
Be nice, be friendly and do not criticize. Adjusters are more generous with folks they like. Avoid settling a claim on a Monday, Friday or any rainy day (they always get you down). Just like buying a car, settle a claim during the last few days of the month.
Trying to reason with hurricane season is part of coastal living and an obscure, rarely performed Jimmy Buffett tune. To honor our 31st anniversary, he played it in Atlanta, the first song after break.
Buz Livingston is a certified financial planner. He operates Livingston Financial Planning Inc. focusing on hourly financial planning and investment management. Contact him directly at 850-267-1068 or at buz@LivingstonFinancial.net.
