60 Day Post-Loss Check In [3/14/2025]

Event Details

Learn what steps you should take and primary considerations for a homeowner the first 60 days after a fire.

An informative and interactive session lead by Founders Devin McRae and Peter Scott.

Key Points

• Claimcraft was founded to help homeowners navigate insurance claims more effectively after the founder's personal experience with a house fire.

• Homeowners should understand their insurance coverage, file a notice of loss, and collect information pertaining to damages within the first 60 days of a claim.

• Dwelling coverage includes the home structure, additional structures, landscaping, and ordinance and law coverage for compliance with current building codes.

• Insurance carriers use Xactimate software to estimate repair costs, which often undervalues the actual cost, leading to disputes over actual cash value versus replacement cost value.

• For smoke damage claims, it is crucial to hire an industrial hygienist to test for contamination and provide a scope of remediation, which can then be submitted to the insurance carrier for coverage.

• Homeowners should consider hiring a public adjuster after the insurance carrier has made an initial determination of the claim to avoid giving away a percentage of proceeds without work being done.

• When hiring a public adjuster, it is important to negotiate the fee structure, ensure they front the costs of retained experts, and consider excluding certain policy benefits from their participation.

• Within the first 60 days of a claim, homeowners should aim to understand their policy coverages, present key information to the carrier, and have experts visit the property to generate reports.

• Submitting a proof of loss with expert reports and estimates from a credible contractor can provide a first mover advantage and move the claim process faster.

Summary

Introduction and Background of Claimcraft

• Vince shared a personal experience with a house fire in 2020, which led to a complex and time-consuming insurance claim process lasting five years at great personal and financial expense

• This ordeal inspired the creation of Claimcraft, a company aimed at helping homeowners navigate their insurance claims more efficiently

• Vince recruited lead attorneys Devin McCrae and Peter Scott, along with co-founder Matthew Hall, to assist in this endeavor

• The goal of Claimcraft is to provide homeowners with the knowledge and tools to manage their insurance claims independently, without relying on expensive litigators or public adjusters who take a percentage of the claim

Purpose and Scope of the Office Hours

• The office hours session focused on what a homeowner's insurance claim should look like during the first 60 days after a loss.

• The presenters emphasized that they were not acting as lawyers and no attorney-client relationship was being established.

• Instead, practical information and tools for homeowners to take ownership of their insurance claims were provided.

• Topics covered included understanding insurance coverage, filing a notice of loss, collecting information about damages, dealing with uninhabitable homes, and identifying which experts to utilize.

Understanding Insurance Coverage

• Insurance coverage typically falls into three main categories: dwelling (the structure of the home), personal property, and additional living expenses.

• Knowing policy limits and understanding various types of coverage is crucial.

• Other structures coverage includes garages and outbuildings.

• Trees, shrubs, and landscaping coverage are also important aspects.

• Ordinance and law coverage helps bring older properties up to current building codes.

• Actual cash value vs. replacement cost value coverage needs to be understood.

• Extended coverage options can increase limits by 10-100%.

• Rare instances of guaranteed replacement cost value policies exist.

• The difference between actual cash value (depreciated amount) and replacement cost value was highlighted.

• Insurance carriers typically pay out the actual cash value initially, requiring homeowners to begin or complete construction before receiving the full replacement cost value.

Smoke Damage Claims

• A significant portion of the discussion focused on smoke damage claims, particularly in light of recent wildfires.

• Hiring an industrial hygienist to test for contamination and document damage is essential.

• Scientific testing is needed to detect soot, ash, and other harmful contaminants like heavy metals and asbestos.

• Sample collection throughout the home and subsequent lab analysis are part of the process.

• Developing a comprehensive scope of remediation and repair based on lab results is necessary.

• Potential challenges in getting insurance companies to acknowledge and cover smoke damage were discussed.

• The Department of Insurance's recent bulletin advised carriers not to deny coverage for smoke loss based on a specific court case.

• Addressing habitability concerns in smoke-damaged homes is important.

Dealing with Insurance Carriers

• Advice on how to interact with insurance carriers was provided.

• Understanding that carriers are required to treat the insured's interests with equal dignity to their own is key.

• Putting the right information in front of the carrier to advance the claim is important.

• Challenging carrier denials by obtaining independent expert assessments is recommended.

• Communicating any health sensitivities or concerns related to smoke contamination is crucial.

Public Adjusters and Attorneys

• When and whether to hire public adjusters or attorneys was discussed.

• Timing is important; avoid hiring a public adjuster before the carrier has made its initial assessment and payment.

• Public adjusters and attorneys typically take a percentage of the insurance proceeds.

• Negotiating terms involves carving out certain policy benefits from the adjuster's commission, limiting their percentage, and including termination clauses.

• Weighing the benefits of public adjusters, such as access to Xactimate software and a network of specialists, against the cost is necessary.

First 60 Days Objectives

• Key objectives for homeowners within the first 60 days of a claim were emphasized.

• Understanding the insurance policy and coverages is crucial.

• Presenting key information to the carrier, including cost estimates for home repair and personal property replacement, is important.

• Obtaining expert assessments and reports is necessary.

• Submitting a formal proof of loss to trigger carrier deadlines is essential.

• Ensuring a comprehensive understanding of the damage and required repairs is vital.

Resources and Recommendations

• Recommendations for additional resources concluded the session.

• The Department of Insurance website and bulletins were suggested.

• Fair Claims Settlement Regulations were mentioned.

• ClaimCraft's knowledge base and future resources, including spreadsheets for documenting personal belongings, were highlighted.

• Knowledge and preparation are stressed as important factors in successfully navigating the insurance claim process, particularly for those affected by wildfires and other disasters.