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The fires that burned through the Louisville and Superior areas of Boulder county destroyed over 1000 homes and left almost 150 damaged. While it is still not known what caused the fire, (initially, it was assumed downed powerlines started the fire) investigations continue.
Many people lost their homes in these fires and were counting on their homeowners’ insurance to help them rebuild. Homeowner’s insurance is supposed to provide you with peace of mind. Unfortunately, the peace of mind you’ve been paying for—sometimes for many years—may vanish once you start dealing with your homeowner’s insurer. You need to know your rights.
What Are My Rights With My Insurance Claim for My Fire Damage?
By law, you have a number of rights, below are just a few:
Right #1: You Have The Right to Have Your Claim Handled Promptly and Reasonably
Insurance companies are capable of treating you fairly and reasonably. You should give them a chance to do so. But insurance companies are also quite capable of being unfair and unreasonable.
Fortunately, Colorado law provides a remedy for people who have been victimized twice, first by the fire and then by their insurer. If an insurer denies or delays homeowners insurance benefits without a reasonable basis, Colorado law (C.R.S. §10-3-1116(1)) allows the insured to recover not only the unpaid benefits but also two times the amount of the unpaid benefits plus attorney’s fees and court costs. If an insurer denies or delays a homeowner’s claim recklessly, the insured can also recover damages for their emotional distress as well as punitive damages.
This law should be a very powerful incentive for the insurance company to handle your claim promptly and reasonably. Unfortunately, in all-too-many cases, an insurer is still willing to treat their insured unfairly, counting on the insured’s reluctance to sue.
Even so, you should give your insurer every opportunity to do the right thing. The first step is to cooperate fully and promptly with your insurer. Your policy requires you to cooperate with the insurer by promptly providing them with the information they need to adjust your claim. We urge people to bend over backward to do this in as short a time as possible.
Document All of Your Communications With The Insurer
If possible, you should document all of your communications with the insurer in an email or in a letter if you don’t have email. If the insurer refuses to communicate by email, ask them for their written policy about email communications. It’s alright to talk with the insurer by phone. Just document each telephone conversation in an email to the adjuster right after the call. And make sure to ask the adjuster to respond in writing if they feel your confirming email doesn’t accurately reflect what was said.
Right #2: The Insurer Must Promptly Give You a Full Copy of Your Policy
Homeowners insurance companies are required to provide insureds with a copy of their policy within three business days of the insured’s request. This is particularly important to people whose policy was destroyed in the fire and who don’t have access to the internet.
All policies are not the same. There can be a great deal of difference in what coverage was agreed to. For example, if your home was destroyed, your policy may cover the full replacement cost but more likely will only pay the actual cash value of your loss. This makes it highly important to get a copy of your full policy as soon as possible.
Right #3: The Insurer Must Give You a Reasonable Explanation of Their Decisions
Colorado law requires the insurer to promptly provide you with a reasonable explanation of their basis, in the policy and the facts, for denying your claim or offering you a settlement. If the insurer refuses to do this, it’s probably time for you to talk to an attorney.
Right #4: Reach Out to The Government If Your Losses Aren’t Fully Covered
Many insureds will face the gut-wrenching situation where the insurance company pays everything it owes under the policy but the insured’s losses aren’t fully covered. If this is the case, you should contact FEMA (Federal Emergency Management Agency) for possible financial assistance. Their ability to help is limited: the current limit is $37,900. But in addition to money for repairing and rebuilding houses, FEMA can provide separate aid for things like personal property and rental assistance. Call 800-621-3362 between 5 a.m. and 9 p.m. MST.
You can also contact the Small Business Administration about low-interest disaster loans. Call 800-659-2955 or email disastercustomerservice@sba.gov.
Other Resources
You can get free information about homeowners insurance claims on the United Policyholders website
When Should I Talk To a Lawyer About My Fire Damage Claim?
If you’ve fully cooperated with the insurance company and given them time to act fairly and reasonably, but the insurer is still not paying you the full benefits owed under the policy, you should talk to a lawyer. The Wilhite Law Firm stands ready to help you. You can call us at 303-839-1650.
