insurance advice (mortgage, loan, house)

[kimchee]

If your home is totaled, what's the best way to maximize your claim? So sad but my friend lost her shore home and is debating about rebuilding or just cashing to pay off the mortgage. The whole town is in shambles now.

[twingles]

Was it flood damage?

Honestly, she'll make out better now than any other time. If it's a covered loss, the insurance company has a lot less time and manpower to get out do in-depth inspections. I remember Hurricane Andrew, I had friends who worked that storm and it was basically "how many square feet is your roof? Ok, we are sending a check".

[kimchee]

Thanks, it is flood damage. The home is just 2 blocks from the boardwalk and beach. Most homes homes within 2 blocks were totaled or sustained severe damage.

[annerk]

Assuming she had flood insurance, there is no way to max it out, flood insurance only covers up to a max of $250K for the building and $100K for the contents. Usually with a total loss they won't ask for an itemized list of contents, although it's always wise to have that documentation available if requested. She'll probably get a check for the max, less the cost of removal of the remnants (which could range from $10-50K depending on the size and condition of the property) and any liens (mortgage, etc.) against the property.

If for some reason she didn't have flood insurance, she's out of luck.

[rscalzo]

it is flood damage

Doubt any lender would make a loan without flood insurance. Companies aren't about to start passing out cash. they will want details of the loss. Best bet is to hire a insurance claim rep. Not cheap but they can navigate the pitfalls.

[annerk]

Originally Posted by rscalzo

Doubt any lender would make a loan without flood insurance. Companies aren't about to start passing out cash. they will want details of the loss. Best bet is to hire a insurance claim rep. Not cheap but they can navigate the pitfalls.

You don't need a public adjuster for this. The insurance company will send out an adjuster or quite possibly a FEMA rep will give them a form stating the home was a total loss. Flood insurance will take the FEMA form in lieu of a claims adjuster and pay out to the policy limits.

It's possible that the policy won't even cover the mortgage on a shore home. This won't relieve the home owner of the debt.

[boater1]

Very important, was house destroyed by wind or flood?
Wind is home insurance
flooding is Flood ins.
If both, let the insurance companies fight about it.

Also if Home insurance
Be sure the correct deductable is used.
Was detrmined before the storm made land fall, it was downgradedd from huricaine to "Post tropical cyclone", which is good news for home owners. Most home ins polices say something like if huricaine, deductable is 5-10% or house value. If not a huricaine, then usual deductable applies (like $500 or $1000 )

Multiple state insurance dept have reminded home insurance companies of this fact and are watching for "mistakes".

[annerk]

Office of the Governor | Newsroom

Christie signed an executive order banning insurance companies from enforcing "hurricane deductibles."

[timneh5]

Originally Posted by annerk

Office of the Governor | Newsroom

Christie signed an executive order banning insurance companies from enforcing "hurricane deductibles."

"However, as the National Weather Service classified Hurricane Sandy as a post-tropical storm prior to landfall in New Jersey, the storm did not meet the first regulatory threshold required to apply a hurricane deductible." (from your posted link)

I wonder what the insurance companies will do, since Sandy was a "post-tropical storm." Whatever that is.