Top 5 Mistakes to Avoid When Filing a Property Damage Claim After the Maui Wildfires

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More than a year after the Maui wildfires, more than 10,000 insurance claims have now been filed. Only about 40 percent of these claims have been approved, resulting in about $2.34 billion in settlements. 

The insurance claims have been filed on various grounds, including property damage. If you were a victim of the Maui wildfires and are considering filing a property damage claim as a Maui wildfire victim, it's important to understand the kind of mistakes to avoid. This knowledge could help you secure fair compensation that will help you and your family rebuild your lives. 

Delaying Your Claim

Top of the list is failure to file your claim promptly. We've seen cases where claims were denied not because they were unfounded but simply because the claimant didn't file within the required timeframe.

We’re not blind to your pain. After a disaster, it's natural to feel overwhelmed. You probably want to focus on immediate concerns like finding shelter and ensuring your family's safety. Unfortunately, though, the clock won't wait for you to address these concerns. It keeps ticking every single second. 

Insurers also have strict deadlines for reporting damage. These deadlines vary from case to case, depending on the insurer and the type of damage. If you miss the deadline, your claim could be denied. So, you should review your policy and note the exact deadline for reporting damage, and make sure you file your claim by the appropriate time.  

Also, remember that filing a claim doesn't mean you're requesting to settle the case immediately. Rather, it notifies the insurance company that you intend to seek compensation for your damages. You can always provide the required documentation later.

Not Documenting the Aftermath

If you intend to make an insurance claim for your damage, you must ensure that you thoroughly and properly document your damages. Failure to do so can hurt your claim in the long run. You need proper documentation to prove the extent of your losses. Here are some tips to document the damage and losses incurred:

• Take clear, high-quality photos and videos of all areas affected by the fire
• Get pictures from multiple angles and capture both close-up details and wider shots
• Record the exterior and interior of your home
• Document any damaged buildings or landscaping
• Create a detailed inventory of your personal belongings
• Go room by room, noting everything that was damaged or destroyed
• Include descriptions, estimated values, and receipts if available

Creating an inventory of your lost and damaged property will help your insurer calculate the amount owed for personal property loss. Without adequate documentation, your insurance provider may lowball you or even challenge the extent of your losses.

Accepting a Quick Settlement

The desire to rebuild your life after a disaster is entirely understandable, but don't let it cause you to settle for less than you deserve. Your insurance company may try to offer you a lowball settlement early in the process. Don’t let the stress and pressure of the situation cause you to take less than what your claim is worth. Once you’ve settled your claim, it’s often impossible to reopen your case – even if you discover that you should have gotten more compensation.

Often, you may only reopen such a case if you can prove that the insurance company blatantly lied or concealed important information to convince you to settle. That's often very difficult, or even impossible, to prove.

To avoid this, carefully review the insurance company’s offer and compare it to your actual losses. It's also usually a good idea to get multiple repair estimates from contractors to ensure that your insurance company’s offer matches the true cost of repairing or replacing your home or property. If you feel the settlement is too low, don't be afraid to negotiate.

Your insurance company may refuse to negotiate with you, but that’s not the end of the road. You can always contact Morgan & Morgan for a free case evaluation. If we learn that your insurance company is acting in bad faith, we’ll make them answer for it in court. 

Neglecting Temporary Housing Costs

In the aftermath of the Maui wildfires, many homeowners were displaced from their homes, at least temporarily. If that happened to you and you had homeowners' insurance, you may be eligible for additional living expenses (ALE) coverage.

ALE coverage pays for the cost of temporary housing if you can’t live in your home. The truth is that many people either forget to claim these expenses or fail to keep proper records. As a result, these people pay out of pocket for costs taht the insurance company should have covered.

Temporary housing costs include hotel stays, rent, utilities, and even meals if you can't cook in your temporary accommodation. These things add up quickly and should not be overlooked.

If possible, create a separate file for all receipts related to your temporary living arrangements. The more organized you are, the easier it will be to submit these costs to your insurer and get reimbursed.

Remember that ALE only covers expenses that exceed your normal living costs. For this reason, you need to demonstrate the difference between what you would normally spend and what you're now paying due to the displacement.

Not Seeking Legal Advice

Often, the biggest mistake homeowners make is failing to seek legal advice when dealing with an insurance company.  The insurance claims process is complex and confusing. Additionally, the insurance companies have a financial incentive to deny claims and reduce the value of claims paid. In fact, we’ve seen cases where an insurance company simply would not agree to a fiar settlement without a fight. 

Unfortunately, some wildfire victims have given up legitimate claims because they simply don't want to fight with their insurance company anymore. Others have settled for less than they deserved just to move on with their lives.

Don't let that be your story. 

Instead, contact one of our experienced property damage attorneys at Morgan & Morgan and we’ll deal with the insurance companies for you. We handle all of the insurance company’s communications and work to present a strong case on your behalf.

If your claim is valid, your lawyer can also negotiate a favorable settlement to cover your losses and damages.

Contact Morgan & Morgan Today

Thousands of property damage claims have been filed in connection to the tragic Maui wildfires. The sooner you get your share of compensation, the sooner you can move past the loss and rebuild your life. To get started, please contact us today for a free, no-obligation case evaluation.  

Advertising Material. Bora S. Kayan, Esq. is responsible for the content of this advertisement. Cases may be associated with, or referred to, other law firms as co-counsel or referral counsel in these and other jurisdictions. Prior results do not guarantee a similar outcome. This post is not legal advice. If you need legal advice, you should consult a lawyer.