A house fire is traumatic, and is an extremely devastating and stressful experience. A house fire that destroys all of your belongings is especially hard to deal with. Since fires are always unexpected, most people don’t know where to turn afterwards.
In this article we have outlined some of the important steps you should take as soon as possible after a fire, in order to keep stress to a minimum and your finances intact.
Find a Place to Stay
Many evacuees stay with friends or family. Even though you probably aren’t paying your hosts, you may be able to have your insurance company to reimburse them for costs associated with having you. Try to have your hosts itemize the value of the room they are providing you with. Be reasonable and be prepared to negotiate with your insurance company.
Contact Your Insurance Company
One of the first things you should do, after arranging for a place to stay, is to contact your insurance company. It’s essential to file a claim as soon as possible to find out what is covered and what you will be reimbursed for, including expenses you incur while you are displaced. This step is crucial not only for immediate relief and recovery but also for laying the groundwork for future decisions, such as repairing or selling your fire-damaged house.
Keep Track of Living Expenses
Ensure your insurance policy includes a “loss of use” clause to receive reimbursement for living expenses. Typically, you can claim additional living costs – like the difference between your usual daily expenses at home and current expenses. For instance, if groceries cost $1200 monthly but now you’re spending $1600 dining out, you could claim $400.
If you are staying in a motel, you will probably be able to claim the entire thing. However, you still have to pay your mortgage, taxes, and insurance. If you are planning on selling your fire-damaged house, it’s a good idea to do this sooner, rather than later so you can start putting your money towards a new home as soon as possible.
No Insurance?
If you lack fire insurance, there are alternatives available. Some opt for a loan to refurbish the house, despite it being costly and often failing to eliminate smoke odors. Depending on the damage’s extent, selling your home and using the proceeds as a down payment on a new one may be prudent. This provides a fresh start, ensuring your expenses go towards your new property without the financial risk of repairs.