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Rocky Mountain Insurance Information
NEWS
6565 South Dayton St. #2400, Greenwood Village, Colorado 80111
Serving Colorado, New Mexico, Utah & Wyoming
Contact: Carole Walker, Executive Director
(303) 790-0216 or 1-800-355-9524
Release Date: Immediately
Topic: Catastrophes
EVACUATED BAILEY RESIDENTS CAN MAKE INSURANCE CLAIMS FOR LIVING EXPENSES & SMOKE DAMAGE: Insurance industry responds to the Snaking Fire and fears the worst is yet to come.
April 24, 2002 – As some 450 Bailey residents are forced out of their homes, insurance companies are arriving on the scene at Elk Creek Elementary. While, so far, no structures have been lost, insurers are anticipating that policyholders will file claims for additional living expenses and smoke damage. “Insurance companies are monitoring the Snaking Fire very closely,” says Carole Walker, Executive Director of the Rocky Mountain Insurance Information Association. “Homeowners who need extra money while they’re evacuated from their homes can get immediate living expenses under their homeowners insurance policies.” A mandatory evacuation triggers the additional living expenses, which are covered under most standard homeowners policies. Evacuated residents should also hang on to their receipts because they can either file a claim later or if there is any damage to their home many of those out-of-pocket expense will also be reimbursed. The Rocky Mountain Insurance Information Association has this update on insurance industry activity, along with advice for homeowners impacted by the fires:
- Residents evacuated from their homes should contact their agents or companies immediately and let them know where they can be reached. Many companies already have claims adjusters on the scene at Elk Creek Elementary to process claims and answer questions. Contact your agent or company if you need additional living expenses while you are out of your home.
- Keep receipts. Out-of-pocket expenses during a mandatory evacuation are reimbursable under most standard homeowner policies.
- Take home inventories and financial documents with you when you are being evacuated. Always put safety first and leave your home immediately when asked by authorities. However, if there is sufficient time to gather items, the first thing you need to take is financial documents and your home inventory. Hopefully, you have prepared a home inventory in advance and it is kept off premises.
WHEN YOU ARE ALLOWED BACK INTO YOUR HOME
- Be prepared to give your agent or insurance representative a description of any damage. Your agent will report the loss immediately to your insurance company or a qualified adjuster. Smoke and damage from firefighting efforts (i.e. slurry damage) is covered up to your policy limits.
- Take photos of the damaged areas. These will help with your claims process and will assist the adjuster in the investigation.
- Prepare a detailed inventory of all damaged or destroyed personal property. Be sure to make two copies—one for yourself and one for the adjuster. Your list should be as complete as possible, including a description of the items, dates of purchase or approximate age, cost at time of purchase and estimated replacement cost.
- Make whatever temporary repairs you can. Cover broken windows, damaged roofs and walls to prevent further destruction. Save receipts for supplies and materials you purchase. Your company will reimburse you for reasonable expenses in making temporary repairs.
- Secure a detailed estimate for permanent repairs to your home from a reliable contractor and give it to the adjuster. The estimate should contain the proposed repairs, repair costs and replacement prices.
- Serious losses will be given priority. If your home has been destroyed or seriously damaged, your agent will do everything possible to assure that you are given priority.
The most costly fire in terms of insured losses was the October 1991 Oakland Hills fire which caused $1.7 billion in insured losses (about $2 billion in today’s dollars). Catastrophic fires account for 3% of insurance losses. That compares to 33% for hurricanes, 32% for tornadoes and 13% for earthquakes. The 2000 Hi Meadow and Bobcat Fires in Colorado caused an estimated $18.5 million in insured damage.
Fire officials are predicting that Colorado’s tinderbox conditions could make 2002 the most devastating on record. It’s critical that homeowners check their homeowners policies now to make sure their coverages and home inventories are up-to-date! Log on to www.rmiia.org for more information.
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Rocky Mountain Insurance Information Association is a non-profit consumer information organization. Affiliated with the Insurance Information Institute, RMIIA has been serving consumers and the media since 1952.
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