What homeowners in the path of Hurricane Harvey can do to avoid financial disaster

Hurricane Harvey

Hurricane Harvey’s heavy winds and torrential downpours are just the beginning — natural disasters can easily become financial disasters for homeowners if they don’t make the right choices in the aftermath.

Hurricane Harvey made landfall in Texas Saturday as a catastrophic Category 4 storm, packing sustained winds up to 130 miles per hour. The storm has since weakened, but continues to dump massive amounts of rain across the region — some parts of Texas have already seen 27 inches of rain, and the National Weather Service has warned that total rainfall for the “unprecedented” event could exceed 50 inches in the days ahead. Federal Emergency Management Agency Director Brock Long has already said that Harvey is “probably the worst disaster” in the state’s history, the Washington Post reported.

Getting through the storm is just the beginning for homeowners in Harvey’s path, as the damage inflicted could take years to repair. Here are tips on what homeowners and renters should do after a natural disaster to protect themselves financially.

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Contact insurance companies and mortgage servicers

Regardless of how much damage a property has received, it’s important to contact insurance companies quickly, said Kristin Sullivan, a certified financial planner based in Denver. “Call your insurance company right away to get an evaluation to see if you can make a claim for damages,” she said. “Don’t assume you won’t [receive money from an insurer] if you don’t see problems with the naked eye.” Insurance companies will be inundated with claims in the wake of a storm, so homeowners and renters who do so soonest will get their checks faster. When talking with the insurance company, be sure to verify what specifically is covered by the policy and whether there are any specific steps that need to be taken before beginning on repairs.

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Homeowners should also reach out to their mortgage servicers about disaster relief policies. Those affected by the storm may be granted forbearance on mortgage payments and loan modifications. Additionally, homeowners should ascertain whether they need their lenders’ approval before cashing a check from the insurer.

Document anything that’s damaged and secure the property

To receive funds from insurers to repair or replace anything damaged in the storm, documentation is critical. This is especially important if local officials require anything be disposed of quickly due to public health concerns. Take extensive photos of your belongings and property, and keep them in a safe place.

While doing this, be sure to check the property for any serious structural damage to determine whether or not it is safe to live in.

Homeowners are also responsible for making sure the property is not further damaged in the wake of a storm, according to HouseLogic. Consequently, it’s important to board up broken windows and cover damaged roofs to prevent additional damage from occurring.

Gather any materials you may need if you have to rent a home temporarily

Airbnb is currently providing evacuees with assistance finding rooms or homes to stay in through Sept. 1, according to the Houston Chronicle. But depending on how much damage a property sustains, homeowners and tenants may have to move temporarily while awaiting repairs. In the wake of a storm, it’s common for rental markets to be overwhelmed with people looking for temporary housing, according to FindLaw. Emergency assistance is also sometimes available via credit card companies for things like hotel stays and transportation, according to Credit.com.

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Having documents like credit reports, proof of employment and pay stubs accessible will make it easier to line up rental housing should that be necessary. Insurers may pay for housing in these circumstances, so also have that documentation handy to show a prospective landlord. And once a rental has been secured, FindLaw recommended that homeowners look into renters’ insurance to protect against any losses incurred while living in a rental.

Keep all receipts for purchases made after the storm

Insurance policies don’t just cover damage and property that’s lost. In some cases, the insurer will be on the hook for additional expenses incurred because of the disaster. For instance, if the kitchen is unusable, homeowners and renters may be entitled to reimbursement for eating out at restaurants while awaiting repairs. Keep receipts safe and dry and consider making copies, Insurance.com recommended.

Know how to spot mold

Mold is a common occurrence following storms — and a major health risk. Children, pregnant women, the elderly and people with compromised immune systems and existing respiratory conditions are at particular risk for being made sick because of exposure to mold, according to FEMA. Not only that, but mold and mildew will digest the organic material they grow on — meaning that mold can cause further damage to wood floors, ceiling tiles, drywall and other parts of a house if left untreated. “When it comes to insurance claims you do have a responsibility to do what you can to mitigate damages,” said Byrke Sestok, co-founder of Rightirement Wealth Partners in White Plains, N.Y. “An insurance company can decline to pay if you are considered to have been part of the reason for the damages.”

Within a day of a flood, mold can begin forming. Homeowners and renters should be on the lookout for discoloration and a musty smell. It’s important to remove items from the home if they’ve been soaked with water and can’t be fully dried, since mold can be easily spread. This can include everything from rugs and furniture to drywall and appliances. Treating materials for mold with proper cleaners is another way of preventing growth and further damage.

source: marketwatch.com