HURRICANE RESOURCES - HOMEOWNERS and BUILDERS

Navigating Insurance Claims After Hurricane Helene: A Guide for WNC Builders

Navigating Insurance Claims After Hurricane Helene: A Comprehensive Guide for Builders and Contractors in WNC

Hurricane Helene has left a significant mark on Western North Carolina (WNC), challenging builders and contractors with the complexities of insurance claims and rebuilding efforts. As a member of the Builders Association of the Blue Ridge Mountains, understanding the intricacies of the insurance landscape is crucial for ensuring successful project completions and maintaining strong client relationships. This guide provides essential insights and best practices to help you navigate the post-disaster reconstruction process effectively.

Overview

As a builder or contractor working in WNC to rebuild after Hurricane Helene, it’s essential to consider several key aspects when assisting clients with their insurance claims. The current insurance landscape is challenging, with insurers seeking substantial rate hikes. According to Fortune, home insurers are advocating for a 42% rate increase in North Carolina following Hurricane Helene, specifically requesting a 20.5% hike for the 11 western counties, including Asheville’s Buncombe County. This increase could impact your clients’ ability to afford insurance and repairs.

When assisting clients with insurance claims:

  1. Encourage Prompt Filing: Advise clients to file their claims promptly to avoid delays in processing.
  2. Thorough Documentation: Help clients document all damage meticulously with photos and videos to support their claims.
  3. Temporary Repairs: Assist with temporary repairs to prevent further damage, but ensure clients consult their insurer first and keep all receipts for reimbursement.

Additionally, be aware that clients may qualify for additional support through programs like Rebuild NC (www.rebuild.nc.gov), which offers funding through HUD’s Community Development Block Grant Disaster Recovery (CDBG-DR) program. Ensuring compliance with these programs and local building codes is vital, as they can significantly affect insurance claims. Buncombe County’s Permitting Division provides online permit applications and resources at www.buncombecounty.org/governing/depts/permits/permitting.aspx.

Keeping the Client Informed

Clear communication with your clients is paramount throughout the insurance claims process. Keeping your clients informed builds trust and ensures that everyone is aligned on the project’s progress and requirements.

Provide Copies

Supply your clients with copies of all documentation submitted to the insurance company. This transparency allows them to stay informed and facilitates their ability to follow up on the claim if necessary.

Client Portal

If you utilize project management software with a client portal, upload all relevant documentation there. This approach ensures easy access for your clients and streamlines the information-sharing process.

Working with Insurance Companies

Effective coordination with insurance adjusters is crucial to avoid disputes and ensure that claims are processed smoothly. Be prepared for potential disagreements between insurers about the cause of damage, especially with multiple storms like Helene and Milton affecting the region.

Best Practices for Claims

Perkins Coie offers several tips for maximizing insurance recoveries:

  1. Coordinate Mitigation Efforts: Align your mitigation strategies with insurers to prevent second-guessing of procedures.
  2. Review Insurance Policies: Encourage clients to gather and review all potentially applicable insurance policies.
  3. Preserve Evidence: Advise clients to collect and preserve evidence of all losses and damages, including photos and videos.
  4. Engage Coverage Counsel: For complex claims, suggest engaging coverage counsel to navigate potential coverage-defeating traps.
  5. General Contractor Licensing: For large projects over $40,000, ensure you hold a general contractor’s license as required by the North Carolina Licensing Board for General Contractors (www.nclbgc.org).
  6. Avoid Scams: Help clients avoid scams by recommending only licensed contractors, advising against cash payments, and ensuring written contracts are in place.

For more information on responding to Hurricane Helene and making insurance claims successful, visit https://perkinscoie.com/insights/update/responding-hurricane-helene-making-insurance-claims-get-paid

Documentation is Key

Proper documentation is essential for supporting insurance claims and ensuring that your clients receive adequate compensation for damages.

Visual Evidence: The Foundation of Your Claim

Photographic and video documentation are critical. Take comprehensive before and after photos of the entire property, capturing wide-angle shots to show overall impact and close-ups of specific damage areas. Ensure all photos are date-stamped to establish a clear timeline.

Don’t rely solely on still images—video documentation provides a more immersive understanding of the damage. Record detailed walk-throughs of affected areas, offering verbal descriptions as you proceed.

Detailed Damage Reports

Create thorough, itemized reports of all hurricane-related damage. Include specific measurements and descriptions of damaged materials. For structural damage, involve professional evaluators whose expert assessments of foundations, walls, and roofs carry significant weight with insurance companies.

Financial Documentation

Prepare detailed, itemized estimates for all necessary repairs, breaking down costs for materials and labor separately. Maintain meticulous records of all actual expenses, keeping every receipt for materials purchased and payments made to subcontractors. This level of detail ensures full reimbursement and protects against potential disputes.

Project Timeline

Develop a comprehensive timeline of the repair and rebuilding process. Document any delays and their causes, particularly those related to insurance claim processing. This documentation is crucial if you need to justify extended project timelines or additional costs.

Additional Critical Documentation

  • Permits and Inspections: Keep copies of all required building permits and inspection reports to demonstrate compliance with local regulations.
  • Contracts and Agreements: Maintain clear records of all contracts and agreements between you and the homeowners, including any change orders or amendments to the original scope of work.
  • Pre-Hurricane Condition Documentation: If possible, obtain documentation of the property’s condition before the hurricane to differentiate new damage from pre-existing issues.

For more in-depth information on documenting natural disasters as a restoration contractor, visit https://blog.magicplan.app/how-to-document-natural-disasters-restoration-contractors

Avoid These Common Problems

Builders often face several challenges when dealing with insurance claims. Addressing these proactively can improve claim resolutions and maintain positive relationships with clients and insurance companies.

Delayed Payments

Delays in receiving payments are common due to slow insurance claim processing. To mitigate this:

  • Maintain detailed documentation of all work and expenses.
  • Submit claims promptly and follow up regularly.
  • Consider using construction management software to streamline the process.

Coverage Disputes

Disagreements about policy coverage can lead to claim denials. To avoid this:

  • Thoroughly review policy terms with clients before starting work.
  • Document all communication with insurance companies.
  • Consider hiring a public adjuster to advocate on your behalf.

Find strategies for navigating coverage disputes at https://www.rmmagazine.com/articles/article/2018/05/01/-Avoiding-Construction-Contract-Claim-Disputes-

Undervaluation of Claims

Insurance companies may underestimate repair costs. Address this by:

  • Providing detailed, itemized estimates for all work.
  • Including documentation of material costs and labor rates.
  • Being prepared to negotiate and provide evidence to support your valuation.

For tips on accurately valuing construction claims, visit https://glgchicago.com/general-contractors-beware-five-reasons-your-insurance-claim-may-be-denied/

Scope of Work Changes

Changes to the original scope can complicate insurance claims. Manage this by:

  • Clearly documenting all change orders.
  • Notifying the insurance company promptly of any significant changes.
  • Ensuring clients understand how changes may affect their coverage.

Learn about managing scope changes in construction projects at https://www.procore.com/library/how-construction-change-orders-work

Working with Additional Resources

In addition to insurance, clients may qualify for support through various programs:

Ensuring compliance with these programs and local building codes is essential for smooth claims processing. Refer clients to Buncombe County’s Permitting Division for online permit applications and resources at www.buncombecounty.org/governing/depts/permits/permitting.aspx.

Conclusion

Navigating the insurance claims process after a major disaster like Hurricane Helene requires diligence, comprehensive documentation, and effective communication. By following these best practices and leveraging available resources, builders and contractors in WNC can support their clients through the rebuilding process while ensuring compliance with insurance requirements and local regulations. Your proactive efforts not only facilitate smoother claims processing but also strengthen client trust and contribute to the community’s resilience in the face of future challenges.

For more resources and detailed guides, visit the following links:

By staying informed and maintaining meticulous records, you can navigate the complexities of insurance claims with confidence, ensuring successful outcomes for your rebuilding projects and the clients you serve.

Simplified Summary

After Hurricane Helene, builders in Western North Carolina need to help people fix their homes. They should tell clients to take pictures of the damage and keep good notes. Talking with insurance companies is important too. Builders can help find extra money from programs like Rebuild NC and FEMA. Keeping everything organized and helping clients understand is key to making things better and rebuilding trust.