How to Approach Home Repair and Insurance Claims After Hurricane Harvey

If you’re dealing with property damage in the aftermath of Hurricane Harvey, knowing how to approach repairs and navigate insurance claims can save you time, money, and stress. Here’s what you need to know to protect yourself and get the help you need.

Step 1: Choose a Reliable General Contractor

In Texas, anyone can claim to be a general contractor—no licensing is required, and no regulatory agency oversees contractors. This makes it crucial to carefully vet anyone you consider for repair work.

Warning Signs of Scams:

• High Upfront Fees: Be cautious if a contractor requests a large cash payment upfront, promising to “move you to the top of the list.” This is often a red flag for a scam.

• Door-to-Door Solicitations: Scam artists frequently go door-to-door following a natural disaster, exploiting desperate homeowners. If someone shows up unannounced, do your research before agreeing to anything.
  

Research Tips:

• Ask for References: Speak with neighbors or others in the community who can recommend reliable contractors.
  

• Verify Online: Conduct a basic internet search of the contractor’s name to see if any negative information appears. Don’t rely solely on ratings from the Better Business Bureau, as some contractors with poor reputations may still hold good ratings there.

Step 2: Understand Your Role in the Insurance Claim Process

Once you’ve selected a trustworthy contractor, the next step is working with your insurance company. While your contractor may assist with parts of the process, you are ultimately responsible for managing the claim.

Tips for Navigating Insurance Claims:

• Document Everything: Take videos and photos of the damage immediately, before making any repairs. These records are critical for your claim.
  

• Identify the Cause of Damage: Check whether your damage resulted from wind, flooding, fire, or other specific causes, as different types of damage may be covered under different policies. Many homeowners may not have flood insurance, especially if they were located in a low-risk area.
  

Be Prepared to Advocate for Yourself:

• Understand that insurance adjusters work for the insurance company and aim to minimize payouts. Provide clear evidence and documentation to support your claim, making it as easy as possible for the adjuster to approve it.

Step 3: Stay Informed About Recent Legal Changes

If you’re filing a claim post-September 1, note that Texas recently enacted changes that may affect your claim. While this law reduces some penalties for insurance companies, it should not impact your claim as long as your documentation and paperwork are in order.

Step 4: Explore Additional Assistance Programs

Federal programs like FEMA and the Small Business Administration (SBA) can offer additional support. FEMA, for example, provides grants for individuals affected by major disasters. The SBA may also provide loans for property repairs if you own a business.

Additional Tips:

• Stay Updated: Monitor announcements for federal or state aid packages related to disaster recovery.
  

• Consider Consulting an Attorney: If you’re unsure how to proceed, a consultation with an attorney experienced in insurance claims can provide valuable guidance. Paying for expert advice often saves money in the long run.

Step 5: Consider Financing Options for Uncovered Repairs

If your insurance doesn’t cover all repairs, you may need to explore financing options:

• Home Equity Options: Given the rising property values in Texas, you may have some equity available for use. However, be cautious and consider smaller, more flexible credit options rather than taking on a large loan.
  

• Speak to Mortgage Lenders Carefully: Ask about low-cost financing options, and avoid sales tactics that push you toward high-commission loans.

Final Thoughts

Facing significant property damage can be overwhelming. By carefully selecting a contractor, documenting everything for your insurance claim, exploring available assistance, and being mindful of financing options, you can navigate this challenging situation more effectively. Consulting an experienced attorney for guidance can also help you maximize your claim and avoid costly mistakes.

Above all, remember to prioritize researching your general contractor. A reliable professional can make all the difference as you recover and rebuild.