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We Buy Fire Damaged Houses:What is the Typical House Fire Insurance Payout?

 

A horrific occurrence like a house fire can ruin your belongings and leave you and your loved ones inconsolable.

The last thing you probably want to be concerned about following such a terrifying incident is whether or not you have enough fire insurance to cover the damages – and if your insurance company is actually going to pay up.

Here’s what you need to know about the typical house fire insurance payout.

Was Your House a “Total Loss”?

“Total loss” is a term used by insurance companies to describe damage to property where the house fire insurance payout would exceed the insurance policy coverage.

Another way a home is considered a “total loss” is if the cost to rebuild the home is higher than the value of the home.

When a house is a total loss, the amount of your house fire insurance payout  depends on the type of coverage you have and the amount of coverage you have.

Other factors influencing the payout include the value of the property at the time of the fire, the insurance adjustor’s analysis of your home and its value, and the circumstances surrounding the fire.

Here is an example of an average house fire insurance payout:

Let’s say you bought your home for $300,000 but it is worth $400,000 now. If you purchased your original insurance policy for $300,000 worth of coverage that means you would not receive the additional $100,000 you need to rebuild the home today.

In other words, you would have to pay $100,000 out of your own pocket to rebuild.

What Usually Gets Covered by Insurance Companies for Fire Damage Claims?

The typical fire damage provision that is included when you sign up for homeowners insurance usually covers a few different things. For example, the expense of replacing and repairing objects that are lost or destroyed as a result of the house fire should be covered by your fire insurance policy.

This covers lost or damaged property as well as structural and other home issues. It should also cover any additional expenses that are directly related to the fire, such as hotel charges for a temporary residence or even short-term rent on a house.

However, there are things to be concerned about here. Many insurance providers use an insurance adjuster to dispute your claims about the extent of the damage or to assert that some of the damage was not caused by the house fire.

Insurance providers may even prolong the claim procedure to put you under more financial strain and compel you to accept any unjust settlement they are willing to provide.

In order to make sure that you and your loved ones are taken care of, it is crucial to fill out property insurance claims as completely as you can.

How to Increase Fire Damage Claim Compensation

Many fire victims commit common errors that can prevent them from receiving the just compensation they are entitled to. If you are making an insurance claim and are worried that your insurance provider will take advantage of you, be sure to follow these steps to make the best claim you can.

Report a Fire to the Insurance Company as Soon as Possible

Waiting too long to get in touch with your insurance company after a fire is the very last thing you want to do. You can receive compensation sooner and receive a more precise assessment of your losses by reporting fire damage to your home’s insurance provider as soon as possible. If you delay, the insurance provider can even reject your claim on the grounds that they weren’t given a reasonable chance to look into it and determine the real reason for your property damage.

Create a List of Lost and Damaged Items

You increase your chances of getting your replacement expenses paid by insurance by keeping a thorough record of the items that were damaged or destroyed in your home fire. When estimating the cost of repairing fire damage, be as specific as you can. Every dollar counts. Remember, little problems could be masking a much bigger one that, if left unattended, could put you in a significant financial bind.

Don’t Discard Anything

Even if you neglected to include something on your original inventory list of lost goods, it is crucial that you do not toss anything that is damaged away. It is far simpler to demonstrate that you overlooked something in your original inventory when you still have the item in question when dealing with an attorney. Keeping damaged items serves as a tangible record of their existence and the precise harm they suffered in the house fire.

Obtain Documentation of the Costs and Damages

It’s crucial to obtain proof of the damage your house fire caused after it has been put out. Take as many pictures as you can of any fire damage to your house and belongings. To acquire a second opinion on the amount of replacement compensation you are eligible for, make sure to engage a public adjuster. A public adjuster can assist you in disputing the insurance company’s loss adjuster’s estimates of the true cost of the damage.

Consider Hiring an Experienced Fire Damage Attorney

You can gain access to a person who is aware of the sneaky tactics used by house insurance companies to defraud claimants out of money by engaging an attorney with experience in submitting fire insurance claims.

A skilled attorney can assist you in gathering proof of damage, determining the replacement cost of your property, and navigating the claims procedure for your fire claim.

Additionally, they’ll help ensure you are treated right and relieve some of the pressure off of you and your loved ones so you can concentrate on starting over.

Own a Fire-Damaged House?

You can sell your burned house in as-is condition and receive an immediate cash payment by working with We Buy Fire Damaged Houses. We have built a strong reputation in the marketplace for paying great prices fast to homeowners who have experienced a house fire.

By working with us, you can sell your fire-damaged house without having to go through a costly and stressful repair process. Then you may be able to combine our payment with your house fire insurance payout to purchase a nice new home.

Fill out the form below to learn more.

 

Photo by Scott Graham on Unsplash

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