When a disaster strikes, you will at first be overwhelmed with concern about the welfare of your family, the future of your business, and the seemingly mounting debt. However, the devastation caused by a disaster will raise a number of insurance coverage issues that you will need to address. Consider the following when it comes time to file and resolve your claim:

After the storm passes, call your insurance company.

At a minimum, you’ll want to ask:

• What types of damage are covered?
• How long will it take to process my claim?

Make temporary repairs.

While it’s OK to take steps to protect your property from further damage, you should hold off on making extensive permanent repairs until the claims adjuster (a person professionally trained to assess the damage) has visited your business and assessed the damages. Make sure you save receipts for what you spend on repairs. 

Prepare for the adjuster’s visits.

Be aware of signing an assignment of benefits agreement, which assign your insurance benefits to a third party. During a disaster, many workers from debris removal to independent appraisers to roofers will not work without an assignment of benefits. There may be implications of signing an assignment of benefits and having multiple assignments to your insurance policy.

• Know that you can obtain an independent appraiser and do not have to depend solely on the appraiser hired by your insurer. Have the appraiser distinguish between wind damage and water damage, which may be covered under separate policies.
• To substantiate your loss, prepare an inventory of damaged or destroyed items and give a copy to the adjuster, along with copies of any receipts. Don’t throw out damaged items until the adjuster has visited. You should also consider photographing or videotaping the damage. If your property was destroyed, or you no longer have any records, work from memory.
• Identify structural damage to your business and any supporting structures. Make a list of everything you want to show the adjuster, such as cracks in the walls and missing roof tiles. You should also get the electrical system checked. Most insurance companies pay for these inspections.
• Get written bids from licensed contractors. The bids should include details of the materials to be used and prices on a line-by-line basis. This makes adjusting the claim faster and simpler.
• Keep copies of the lists and other documents you submit to your insurance company. Also, keep copies of whatever paperwork your insurance company gives you and record the names and phone numbers of everyone to whom you speak.

After your claim has been settled and the repair work is underway.

Take the time to re-evaluate your insurance coverage. Was your business adequately insured? Did you have replacement cost coverage for all of your assets? Talk to your insurance agent about possible changes.