Fire damage insurance claim help: house fire and smoke claims

Your declarations page (the summary page of your policy) lists separate limits for each part of a fire claim. It helps to think of them as three files you keep open at the same time.

Detached structures such as a garage or fence usually have their own limit too. Our guide to what dwelling coverage pays for explains the house part in more detail.

The fire report is the official record of when the fire started and what the investigators found. Insurers rely on it. On the day of the fire, ask for the incident report number and the name of any fire marshal or investigator. You can usually request a copy once it’s ready.

On larger or unexplained fires, the insurer may send its own cause-and-origin investigator. You may be asked for a recorded statement. Answer honestly and stick to what you know.

Many policies also let the insurer ask for a signed, sworn proof of loss (a formal statement of what you claim), often due within 60 days of the request, and an examination under oath (a formal, recorded interview). Check your policy for the deadlines. If you’re asked for an examination under oath, it’s reasonable to talk to a licensed attorney first.

Rooms that never saw flames can still be ruined by smoke. Soot can be oily and acidic, and it spreads through air ducts, closets, insulation and the inside of electronics. The U.S. Fire Administration warns that soot and dirty water may contain things that can make you sick, so be careful touching fire-damaged items.

Document before the cleaners arrive

A cleaning crew can erase your evidence in a day. First, photograph every room, including ceilings, the insides of cabinets and closets, and the HVAC vents. Wipe a white cloth across a few surfaces and photograph it. Note any smell that stays after cleaning.

Clean or replace?

Insurers often start with cleaning, which suits many items. If an item still smells or stains after cleaning, ask in writing for replacement and keep the photos. Ask whether the air ducts, insulation and HVAC system will be inspected. Before a restoration company starts, confirm in writing who is paying them and get their estimate.

Most insurers ask for a list of every damaged item, with a description, age and price. After a big fire, that list can run into the thousands. Work room by room, using phone photos and videos, online orders, bank statements and card records.

Many policies pay belongings at actual cash value (the replacement price minus wear) first, then pay the rest after you replace the item. That held-back amount is called recoverable depreciation. Read the special limits in your policy. Some, like the cap on cash, apply to any loss. Others, like those on jewelry and firearms, often apply only to theft, so they may not limit a fire claim. Our free room-by-room inventory checklist keeps the list in one format.

If a covered fire makes the home unlivable, most homeowners policies pay additional living expenses: the extra cost of living elsewhere, such as rent, a hotel, higher food bills or longer drives. It has a dollar limit and often a time limit.

Ask early about an advance for immediate needs. Keep every receipt and a note of your normal monthly spending. Our explainer on loss of use coverage covers what counts and how to track it.

In a partial loss, part of the home can be repaired. Problems often show up mid-job: wiring or framing damaged behind walls that looked fine. Extra costs found during repairs can be requested with an insurance claim supplement.

In a total loss, the home must be rebuilt or can’t be saved. The big questions become whether your dwelling limit covers today’s building costs, whether you have ordinance or law coverage (help paying for current building code upgrades), and how demolition and debris removal are paid. Buying another home instead of rebuilding can change what you’re paid, so read your policy first. Wildfire losses add more issues, covered on our wildfire claim page.

Uninsured losses may matter at tax time; see IRS Publication 547 on casualty losses or ask an accountant.

If you have a mortgage, payments for the house are usually made out to you and your lender. The lender must endorse (sign) the check. On larger claims, it often holds the money and releases it in stages as repairs are inspected. Payments for belongings and living expenses usually come to you alone.

Fire is a covered cause in standard homeowners policies. Delays and denials tend to come from a short list of issues:

• The cause is still under investigation
• The policy lapsed for nonpayment before the fire
• The home was vacant longer than the policy allows
• The insurer believes the fire was set on purpose or the claim was exaggerated
• Paperwork the insurer asked for is still missing

If you think the insurer’s estimate is low, our guide on how to dispute an insurance claim walks through a written, documented response. Read any paper labeled release or final settlement before you sign it. Some homeowners with large losses hire a public adjuster (a licensed adjuster who works for you for a fee), so learn how that works before signing with anyone.