Fire Recovery Essentials: Dos and Don’ts Every Policyholder Must Know

In the aftermath of a fire, the immediate concern is ensuring the safety of people and property, but as a property manager, facilities supervisor, or residential homeowner, knowing the right steps for handling fire damage claims can make or break the recovery process. Insurance companies often delay, deny, or underpay claims, and understanding how to navigate the claims process properly can protect your business, organization, and family from significant financial losses.

Whether you’re managing a commercial property, a multi-family building, or a large facility like a hospital or manufacturing plant, following a clear set of best practices when handling fire damage claims will ensure you meet policyholder requirements and protect your claim from being underpaid or denied. Here are the top 5 things you must do after a fire—and 5 critical mistakes to avoid.

Top 5 Dos: What Every Policyholder Must Do

1. Prioritize Safety and Document Everything

Before anything else, ensure that you and your property are safe. Once fire officials clear the site, thoroughly document all visible damage. Take detailed photos and videos of every damaged area, including soot, structural damage, and any water damage from firefighting efforts. This documentation is crucial when handling fire damage claims, as insurance companies rely on evidence to validate the extent of losses. However, it’s important to remember that ash, smoke, and soot residues can be extremely hazardous and even carcinogenic. It's best to wear proper protective equipment (PPE) or hire public adjusters or other specialists trained in fire damage assessment to gather and document evidence safely.

2. Contact Your Insurance Provider Immediately

Time is of the essence. As soon as it’s safe, notify your insurance provider of the fire damage. Most policies require prompt notice, and delays can lead to complications or outright denials. Don’t stop at just notifying them—request a full copy of your policy to review specific coverage details related to fire damage, water damage, and other possible perils.

3. Secure the Property from Further Damage

Insurance policies have obligations that require the policyholder to mitigate further damage to the property. This means boarding up windows and doors to prevent unauthorized access which can lead to liability if someone gets injured in the damaged property, covering holes in the roof, and ensuring no additional water damage occurs. Insurance policies generally require this to protect their investment, and failure to do so can result in claim reductions or partial denials. Protecting the property is crucial for properly handling fire damage claims. If the fire is large, with widespread damage, it is best practice to have an expert handle the task of mitigating damages due to the inherent danger.

4. Get an Independent Assessment of the Damage

Insurance companies often send out their own adjusters to assess fire damage, but it’s in your best interest to hire an independent public adjuster. A public adjuster works for you, not the insurance company, and ensures the damage is fully documented and valued correctly. As Chip Merlin points out in Pay Up!, insurance companies are notorious for underestimating claims, making this step crucial in maximizing your recovery. This independent verification is key to handling fire damage claims fairly.

5. Review Your Policy and Coverage Thoroughly

Fire losses often reveal gaps or limitations in your coverage that may not have been evident before. Bill Wilson, author of When Worlds Collide, emphasizes that understanding your policy’s exclusions, such as for water damage from fire suppression, is essential. Verify whether your policy includes additional living expenses (ALE) or business interruption coverage, both of which can be crucial to long-term recovery. Careful review and understanding of your policy are essential when handling fire damage claims.

Top 5 Don’ts: Mistakes to Avoid After a Fire

1. Don’t Dispose of Damaged Property Too Soon

One of the biggest mistakes policyholders make is discarding damaged items before the insurance company has had a chance to inspect them. The adjuster needs to see the full extent of damages, and throwing away any items prematurely can result in your claim being reduced. Keep everything, even if it’s charred or soaked—this is vital when handling fire damage claims.

2. Don’t Make Unauthorized Repairs

While securing the property is essential, avoid making any permanent repairs before the insurance adjuster inspects the damage. The insurance company may refuse to reimburse you for unauthorized repairs. David Skipton, in The Claims Game, points out that insurance companies often use such actions as grounds for reducing claim payouts. Avoiding unauthorized repairs is crucial for effectively handling fire damage claims.

3. The First Settlement Offer is Almost Never Final

Insurance companies often aim to settle claims quickly and cheaply. According to Jay M. Feinman’s Delay Deny Defend, the first offer you receive may be significantly lower than the true cost of repairs. Always compare their offer with an independent estimate, and don’t hesitate to negotiate or request a re-evaluation if the numbers don’t align. This is a critical part of properly handling fire damage claims.

4. Don’t Forget to Document Additional Costs

Fire recovery often incurs costs that go beyond physical repairs. This can include temporary housing for displaced tenants, lost income from halted business operations, or additional security measures. Be sure to document these costs carefully, as they may be recoverable under business interruption or additional living expense coverage. Thorough documentation is key when handling fire damage claims.

5. Don’t Rely Solely on Your Insurance Company’s Adjuster

As mentioned earlier, the adjuster sent by the insurance company works for them—not for you. Their job is to protect the company’s bottom line, which means your claim may be underpaid if you don’t hire your own advocate. The National Association of Public Insurance Adjusters (NAPIA) emphasizes that public adjusters are the policyholder’s best defense against unfair claim settlements. Hiring a public adjuster can greatly assist in handling fire damage claims.

How Insurance Companies Handle Claims and Why It Matters

It’s an unfortunate reality that many insurance companies engage in practices designed to limit their liability. From delaying the claims process to outright denying coverage, policyholders often find themselves in a battle to receive fair compensation. This is why being proactive and knowledgeable about handling fire damage claims becomes critical. Studies show that policyholders who engage public adjusters receive significantly higher settlements compared to those who rely solely on the insurance company's adjuster.

Public adjusters are licensed professionals who specialize in representing policyholders in property damage claims. Whether you’re dealing with fire, water damage, or vandalism, their expertise can make a significant difference in how your claim is handled. As with any large-scale property loss, ensuring the accuracy and thoroughness of your claim is crucial to avoiding underpayment.

Protect Your Interests When Handling Fire Damage Claims

Fire recovery is a challenging process, but by following these dos and don’ts, property managers, facility supervisors, and other property owners can avoid the common pitfalls that lead to claim denials or settlement reductions. When dealing with the aftermath of a fire, never underestimate the importance of documentation, prompt communication with your insurer, and securing the services of a public adjuster.

When you're ready to take the next step, contact Velocity Public Insurance Adjusters today to learn how we can help you navigate the complex world of insurance claims with confidence.