After a hurricane, flood or fire: what to do

This guide is for you if a hurricane, flood or fire damaged the home you live in, whether you own or rent. You will see what to do in the first days, how to file your insurance claim, where federal disaster aid is requested, what happens with your mortgage and how to avoid the scammers who show up after a tragedy. We report what official sources say, and free help is available for your own case.

For the flood insurance adjuster to contact you after you report the loss

48 hours⁶

To send your proof of loss to your flood insurer

60 days¹⁰

How long a flood claim can take to be paid

4 to 8 weeks⁵

Of FEMA rental help, for those who qualify, while your home is repaired

Up to 18 months¹

First: your safety and the first days

After a disaster, your safety and your family’s come first. Do not go back into the house until it is safe. You can start a flood insurance claim before you return.⁶

According to the CFPB (the Consumer Financial Protection Bureau), when your home is damaged there are three things to do first: call your insurer to file a claim, apply for aid from government programs and let your mortgage servicer know what happened.¹ Here is the order for the first days:

The first days, step by step

1. 1. Get safe

   Before going back in

   Do not go in until it is safe. You can report a flood claim before you return.⁶

2. 2. Notify your insurer

   As soon as you can

   Your policy may set a deadline to file. Notify every policy that covers something damaged and ask for a copy if you lack one.²

3. 3. Document the damage

   Before cleaning up or throwing anything out

   Clear photos and videos, appliance serial numbers and small samples of carpet or flooring.⁷

4. 4. Make only temporary repairs

   While you wait for the adjuster

   Board up a broken window or put a tarp on the roof. A permanent repair before the damage is seen can cost you the claim.¹¹

5. 5. Apply for federal aid, if declared

   As soon as you can

   At DisasterAssistance.gov, in the FEMA app, by phone or in person at a Disaster Recovery Center.¹²

6. 6. Call your mortgage servicer

   Before your next payment

   Ask what help it offers disaster victims, such as forbearance or a repayment plan.²

   Try it with your numbersFamily budget

7. 7. Review the adjuster's estimate

   When you receive it

   Read it carefully. If you find more damage, you can ask for an additional payment even if the claim seems closed.⁶

If you had to leave home, set up mail forwarding and update your contact details with your bank, your insurer and your utilities. That way checks and notices reach you on time.⁴

Your homeowners insurance claim

Notify your insurer right away. According to the CFPB, your policy may require you to file a claim within a certain period after the disaster. You may have several policies, such as homeowners insurancehomeowners insuranceHomeowners insurance pays for losses and damage to your property if something unexpected happens, like a fire or a burglary, and usually includes liability coverage if someone is hurt at your home. Lenders require it as long as you have a mortgage, because the home is their collateral, and almost always collect it inside your monthly payment through the escrow account. The price depends on the location, the rebuilding cost, the deductible and your history. A standard policy does not cover floods or, in many states, earthquakes: those risks are insured separately.See the full definitionClose, flood or auto: notify each one that covers something damaged.² Most companies set deadlines for filing.¹¹

Document everything. Take photos or videos of the damage before and after any repair you make yourself. The insurer may send an adjuster to inspect it.² The Texas Department of Insurance recommends making only temporary repairs, such as boarding up broken windows or putting a tarp on a damaged roof, and no permanent ones: the insurer might deny the claim if you repair before it sees the damage.¹¹

How you get paid. Depending on your policy, the insurer pays based on replacement cost or actual cash value. Replacement costreplacement costReplacement cost is a way a home insurance policy pays for damage: it gives you the money to repair or rebuild your home, or replace your belongings, with materials of similar quality at today's prices, without subtracting what they lost in value from age or use (depreciation). It is different from actual cash value, which does subtract depreciation. Many insurers pay these claims in two checks: the first one minus depreciation, and the second, for the amount held back, when you finish the repair. Your policy says which of the two methods it uses.See the full definitionClose gives you money to rebuild or repair with similar materials at today’s prices. Actual cash valueactual cash value (ACV)Actual cash value (ACV) is a way a homeowners or renters insurance policy pays for damage: it gives you what it costs to repair or replace what was damaged minus depreciation, meaning the value it lost from age, use or wear. That is why it usually pays less than replacement cost, and you cover the difference. Many policies pay for your personal belongings this way unless you buy replacement cost coverage. And if you have that coverage, the first check on your claim is often for the actual cash value.See the full definitionClose takes the age and condition of your home into account, so it can fall short.³ On every claim, you pay your deductibledeductibleA deductible is the part of an insurance claim you pay yourself. When you have a covered loss, the insurance company subtracts the deductible from the claim amount and pays you the rest. You may have a different deductible for each type of coverage. You will find it on the first page of your policy, called the declarations page, along with your coverages and limits. In taxes, the word "deductible" means something else: an expense that can lower the taxes you owe.See the full definitionClose.¹¹

If you are paid less or denied. Ask for the reasons in writing and whether there is an appeals process. If you believe the claim was wrongfully denied, you can file a complaint with your state’s department of insurance. Your state law may also set deadlines for the insurer to act.²

If you cannot live at home. Additional living expenses (ALE) coverage pays if you have to move while damage your policy covers is repaired: rent, food and other costs you would not have at home. It pays only up to your policy’s limit, so track your spending to make it last the whole time you are away.¹¹

Three policies, three different claims

If you own

Homeowners insurance

• Pays replacement cost or actual cash value, depending on your policy.³
• Usually does not cover floods.⁴
• May pay extra living costs elsewhere, up to the policy limit.¹¹

A separate policy

Flood insurance (NFIP)

• Covers only damage caused directly by water rising from the ground up.⁵
• Requires your proof of loss within 60 days.¹⁰
• Does not cover mold damage.⁵

If you rent

Renters insurance

• Covers your damaged belongings inside the home you rent.⁴
• Your landlord is not responsible for your belongings.⁴
• Sometimes pays the cost of living elsewhere.⁴

Check which policies you have and notify each one: the clock to file may start on the day of the disaster.²

Example with real numbers

How insurance money arrives if you have a mortgage

An example in words of what the CFPB describes; your servicer will tell you its own steps.

The insurance check

Made out to you and to your servicer or lender

Before work begins

The servicer releases part of it so you can hire someone to repair

As the work progresses

It releases more money, in stages

With each payment to the contractor

You get a receipt and a lien waiver

When the work is done

It releases the rest once the home passes inspection

That is how the CFPB explains it, and your mortgage continues while the claim is paid out.³ A lien waiver says the contractor has been paid.⁴ Use the budget tool to organize your spending in these months.

Run it with your numbersFamily budget

If it was a flood: your NFIP claim

Homeowners insurance usually does not cover floods.⁴ Flood insuranceflood insuranceFlood insurance is a separate policy that can cover a building, its contents, or both, when flood water causes damage. Most homeowners insurance policies do not cover that damage. Most of these policies are backed by FEMA's National Flood Insurance Program (NFIP) and bought through insurers and agents. If your home is in a high-risk flood area and your mortgage is backed by the federal government, the lender is required to demand it; outside those areas it is optional, but floods happen there too.See the full definitionClose from the NFIP (the National Flood Insurance Program) covers only physical damage directly caused by a flood: water that enters your home from the ground up. It does not cover, for example, rain blown into your home by wind.⁵

Report the flood to your insurer right away. It assigns an adjuster who should contact you within 48 hours. Do not throw anything out before the adjuster sees it, unless it is a health hazard or local law requires you to discard it, and keep samples of carpet or flooring.⁶ Take clear photos and videos before cleaning, write down appliance serial numbers and keep receipts for repairs and anything you buy new. Mold can start forming within 24 to 48 hours.⁷ And the policy does not cover mold damage.⁵

When the adjuster arrives, ask for their Flood Control Number (FCN) card and a government-issued photo ID.⁶ Talk to your agent or adjuster before you sign with a cleanup company.⁵

Payments. During major floods, FEMA allows advance payments: your insurer may offer up to $5,000 without an adjuster’s visit, and up to $20,000 with authorization and documentation. The advance is deducted from the final payment.⁵ A claim can take 4 to 8 weeks to be paid, and if you have a mortgage the check is written to you and your mortgage company.⁵ If you find more damage later, you can request an additional payment at any time.⁶

Rebuilding with less risk. You may qualify for up to an additional $30,000 to rebuild in a way that lowers your flood risk. It is called Increased Cost of Compliance (ICC) coverage; ask your adjuster or agent.⁸

If you are denied. You have 60 days from the date on the letter to appeal to FEMA, counted in calendar days. There is no fee and you do not need anyone to represent you. If you choose an appraisal, you can no longer appeal to FEMA. And if you decide to sue, the deadline is one year from the denial; an appeal does not extend it.⁹ The flood insurance and NFIP guide explains what each part of the policy covers.

If you rent your home

According to the CFPB, if you can keep living in your rental, even with damage, you generally need to keep paying rent. Notify your landlord in writing about the damage.⁴

Even if you cannot live there, for example because there is no water or power, the lease does not end on its own: generally, you or the landlord must end it in writing. And your landlord can’t use your security deposit to pay for damage caused by a natural disaster.⁴

Your belongings are covered by renters insurancerenters insuranceRenters insurance, also called tenants insurance, protects your belongings and protects you when you rent. The landlord's insurance covers the building, but not your furniture, clothes or electronics. It usually includes three coverages: your personal property, even if it is stolen away from home; additional living expenses if a covered loss forces you to move out for a while; and personal liability if someone is hurt in your home. A standard policy does not cover floods, which are insured separately. Some landlords require it.See the full definitionClose, not by your landlord. Sometimes that policy also pays the cost of living elsewhere if you cannot stay home, so check your policy.⁴ The renters insurance guide explains what it covers, and if you fall behind on rent, the guide on what to do if you can’t pay your rent shows where to start.

Federal disaster aid: where to apply

FEMA (the Federal Emergency Management Agency) gives financial assistance to people who live in a presidentially declared disaster area, and not everyone qualifies for every program.¹² There are four ways to apply: online at DisasterAssistance.gov, with the FEMA app, by phone at 1-800-621-3362 or in person at a Disaster Recovery Center (DRC).¹² The CFPB notes that the application is available in English and Spanish.²

To apply, USA.gov says you will need your Social Security number, your insurance information, a description of the damage, your annual household income, your contact information and a bank account for direct deposit.¹²

This aid does not replace insurance: you apply for it on top of your claim, and it can help with costs insurance does not cover, such as temporary housing.⁵ According to the CFPB, FEMA may help with a hotel for a short time, with the first month’s rent and deposit for a new place, and with rent for up to 18 months for those who qualify while their home is repaired.¹ After you register with FEMA, you will learn whether you qualify for the hotel program (TSA).¹⁴

SBA loans. The Small Business Administration (SBA) lends to homeowners and renters whose homes were damaged in a disaster, even if they do not own a business. Your home must be in a presidentially declared disaster area, the loan must be for your primary home and cannot duplicate what insurance or other programs already pay. Before you apply, you must register with FEMA.¹³

Other help. Disaster Legal Services gives free legal help to people with low income in federally declared areas, for example with repair contracts or landlord problems. The IRS may offer tax relief, such as more time to file.¹² Your state emergency management agency may have resources even without a presidential declaration.² Without a federal declaration, the Red Cross and state and local governments may help with food and shelter.¹² In most of the country, 211 connects you with local services and emergency housing.¹⁴

Your mortgage after the disaster

Damage to your home does not end your obligation to pay your mortgage.² Call your loan servicerloan servicerThe loan servicer is the company that sends you your mortgage statements and handles the day-to-day tasks of the loan: it processes your payments, answers your questions, keeps track of principal and interest paid and manages your escrow account, if you have one. It can also offer options if you fall behind and, in certain cases, start a foreclosure. It may be the same company that lent you the money or a different one, and it is common for another company to take over the loan after closing.See the full definitionClose, tell them what happened and ask what help they offer disaster victims, such as forbearanceforbearanceForbearance is an agreement with your loan servicer to pause your mortgage payments, or make smaller payments, for a while when you face a hardship such as losing your job, a natural disaster or unexpected medical costs. It does not erase or reduce what you owe: you have to repay the missed or reduced amounts later. Depending on the agreement, you may repay it all at once at the end, add it to the end of the loan, repay it with a new loan or spread it out through higher payments for a time. You have to request it from your servicer.See the full definitionClose or a repayment plan. The options depend on who owns or guarantees your loan.²

According to the CFPB, federal rules allow, but do not require, a loan’s owner or servicer to help you after a disaster. Government-backed loans have guidelines that allow stopping or delaying a foreclosure. With an FHA loan, if you are at risk of losing your home because of the disaster, your lender may stop or delay the start of foreclosure for 90 days.¹

Lenders generally evaluate your options with a complete application. But the CFPB recognizes that completing one can be hard after a disaster and that the lender should be able to offer options anyway.⁴ Regulation X allows a servicer to offer short-term forbearance or a short-term repayment plan based on an incomplete application. If it does, it must send you the payment terms and duration in writing, tell you other options may be available and that you can send a complete application to be evaluated for all of them. While you keep to those terms, it may not start foreclosure or hold a sale.¹⁵

Also ask them to add a natural disaster code to your credit report, so other lenders understand why you fell behind.⁴ A HUD-approved housing counselorHUD-approved housing counselorA HUD-approved housing counselor works at an agency HUD has approved to provide housing counseling: independent, expert advice customized to your situation about buying a home, renting, a missed mortgage payment, a foreclosure or credit problems. The agencies usually charge little or nothing; many serve in Spanish and offer the homebuyer education course several assistance programs require. They are not lenders or real estate agents and sell you nothing. Your county page lists the official agencies with phone numbers.See the full definitionClose can go over your options with you, often for free or at low cost.¹⁹ The guide on what to do if you can’t pay your mortgage explains each option and the federal timeline.

If your insurer does not renew your policy after the damage, most states have FAIR plans, which offer basic protection although the coverage typically costs more than a standard policy.⁴

If this is you

You cannot live in your home

Check whether your policy pays additional living expenses¹¹ and, with a presidential declaration, register with FEMA to see if you qualify for a hotel.¹⁴

You have a mortgage

Call your servicer before your next payment and ask about forbearance or a repayment plan.²

You rent your home

Report the damage in writing; your lease does not end on its own and your deposit does not pay for disaster damage.⁴

Your family has mixed statuses

Federal benefit rules have exceptions for in-kind emergency relief.¹⁶ Review your case with legal aid.²⁰

Contractors and scams: be careful who knocks on your door

Before hiring anyone, ask your insurer and your servicer how and when the insurance money will be paid out.¹⁸ The CFPB recommends:

• Getting written estimates from two or three contractors to compare.
• Looking up the contractor’s license or registration with your state’s contracting board or agency.
• Asking whether the job needs a building permit and who will get it.
• Not hiring someone going door to door, not paying upfront without a signed contract, not paying in cash and not making the final payment until the work is finished to your satisfaction.¹⁸

At each stage, ask for a lien waiver: a paper saying the contractor has been paid and cannot put a lienlienA lien is a legal right a creditor holds in your property to make sure you repay a debt. It usually prevents the property from being sold until the debt is paid, and if you do not pay, the creditor may be able to take the property. Your mortgage is a lien on your home: when you pay it off, the lien is released and that shows up in your county's property records. There are other kinds, such as a federal tax lien, which is the government's legal claim against all your property when you do not pay a tax debt.See the full definitionClose on your home over that bill.⁴ If a company demands full payment before starting, it may be a scam.⁷

If you have already been scammed, call the National Center for Disaster Fraud hotline at (866) 720-5721.¹⁷ You can also complain to the agency that licenses contractors in your state.¹⁸ The contractor and home repair scams guide has more warning signs.

Costly mistakes

• Mistake: Throwing out damaged items before photographing them.

  Instead: Document everything before cleaning up and keep samples, unless something is a health hazard.⁶

• Mistake: Making permanent repairs before the insurer sees the damage.

  Instead: Make only temporary repairs, such as a tarp on the roof.¹¹

• Mistake: Waiting for the adjuster to hand you the proof of loss form.

  Instead: Send it within 60 days even if no one helps you fill it out.¹⁰

• Mistake: Stopping your mortgage payments without talking to your servicer.

  Instead: Call and ask about forbearance or a repayment plan.²

• Mistake: Paying someone who says they are from FEMA, or a contractor who knocks on your door.

  Instead: FEMA does not charge; hire with a written estimate and no upfront payment.¹⁷¹⁸

• Mistake: Spending all your living-expense money in the first weeks.

  Instead: Additional living expenses coverage has a limit: keep track.¹¹

What to do this week

1. Make sure your family is safe and do not go into the house until it is safe.⁶
2. Notify every insurer that covers something damaged and ask for a copy of your policy.²
3. Photograph and video everything, write down serial numbers and keep samples and receipts.⁷
4. If there is a presidential declaration, apply for FEMA aid at DisasterAssistance.gov, in the app, by phone or in person.¹²
5. Call your mortgage servicer and ask about help for disaster victims.²
6. Before hiring, get two or three written estimates and check the contractor’s license.¹⁸
7. If you want help with your options, look for a HUD-approved housing counselor or a legal aid office.¹⁹²⁰