The trauma of a house fire doesn’t end when the fire department leaves the scene.
As the taillights of the fire truck go out of sight, the realization that one faces a situation too big to face alone becomes apparent. Someone, somewhere, is going to have to lend a helping hand, and help guide the family through the crisis.
The task of just continuing to keep up with daily responsibilities becomes a monumental task after a fire. Day-to-day life itself becomes emotionally and physically draining.
Many look to their insurance agent to lend that much-needed, helping hand when a fire occurs and changes every thing.
A good agent knows how to guide a family through trying times and navigate the paperwork associated with making a claim on a homeowners policy. In some cases, disaster recovery has already been discussed with a resultant plan in place.
The agent can also provide contact information for local organizations that offer disaster relief for families in times of need. For example, some find it helpful to seek counseling to deal with the devastation a fire leaves in its wake.
Tisha and Samantha met at a fire-recovery support group. Tisha’s agent recommended the group when he visited her the day after the fire. Samantha found the group thanks to a recommendation from the pastor of her church.
The women, both married mothers of two, called a hotel room home throughout the Christmas season that year.
The stress of rebuilding from square one, with no idea how to reach square two, forged a bond between the women. They walked through the process side by side, supporting one another along the way.
The experience taught them many things.
They also learned the ins-and-outs of homeowners insurance policies.
It was the latter that truly separated the post-fire experience for the pair.
TISHA
Tisha and her husband Rob were high school sweethearts who went hand-in-hand to college. The couple spent their college years studying, working, saving, and planning to purchase a home and marry after graduation.
By the time that day came, the families of the couple had become one large, tight-knit family. The four parents helped guide the newlyweds through the home-buying process. They also stressed the importance finding an agent who would assist in making sure a well-designed homeowners policy would fit their needs.
Neither Tisha nor Rob really knew the details of their policy the day the paperwork officially made them homeowners.
Flash forward fifteen years and the two-person family that bought the house, was now a four-person family. The couple had picked up where their parents left off, and had made their house a loving, supportive, environment for their children to grow within.
Then the phone call came.
The family was at the local shopping mall enjoying a dinner together after a long day of Christmas shopping when Rob’s cell phone rang.
“It’s Joe from next door,” he said, looking at the caller ID.
Rob started to send the call to voice mail, but it was unusual for Joe to call, so he answered it. He was stunned at what Joe had to say.
The family’s house was engulfed in flames and no fewer than five fire trucks were there battling the blaze. The details of the day from that point forward are little more than a blur to Tisha and Rob. Everything they had worked so hard to attain was gone before they even got to the scene.
The family crammed into Tisha’s parents’ home that night, despite there only being two bedrooms and one small bathroom. She called her agent first thing the next morning and he helped guide them through the claim and rebuilding process.
The insurance agent and adjuster went to the scene quickly, and put together a plan to help the family get back on their feet.
It was during that first discussion with her insurance agent, some immediate fears were relieved. Her policy included replacement coverage of not only the house but their belongings as well. It also included loss of use coverage that paid for lodging so they wouldn’t be a burden on her parents.
The details of the policy meant Tisha’s family would have enough money to rebuild their home, replace their belongings, and enough money for room and board until a new house could be built. Granted, some of the personal belongings could never be replaced, but all the essentials would be taken care.
The agent was also able to immediately get money in their hands so they could buy clothes, food and secure a place to temporarily live.
Even though this was a huge disruption in their lives, the prompt attention by the agent and his ability to channel all the resources for them kept the discomfort to a minimum.
During this process, the agent even provided the names of several organizations designed to help fire victims put their lives back together, including the support group where she met Samantha and learned not all insurance policies are created equal.
SAMANTHA
Samantha and Samuel, known to their friends as the Sams, had lived in their home for just five years when disaster struck.
It was a small home in a quiet neighborhood where the children could play outside without worry.
The couple worked hard and lived in a cramped apartment for eight long years before saving up enough to make a down payment with the clout to bring their monthly mortgage payment into a range they could afford, and still get what they wanted.
When it came time to sign the deal with the bank, not much thought or time was given to the purchase of a homeowners policy. A few suggestions were offered to them, but they opted to use the Internet to collect quotes, and ultimately opted to go with the lowest price assuming it’s just insurance, right?
They never again gave the homeowners policy much thought after that; it seemed to satisfy the bank so they assumed everything was ok.
They were set, life was good. That is, until one night in late December.
The couple was jarred awake by a downstairs smoke alarm around 2 a.m.
Samuel got out of bed to investigate the alarm, but he didn’t have to go far. He smelled smoke as soon as he opened the bedroom door and immediately went cold with fear.
From the top of the stairs he could finally see what his nose and smoke alarm had already sensed. The living room, on the lower level, was filled with a thick smoke that ominously glowed from the flames that were ravaging the home.
The family narrowly escaped in their pajamas and called for emergency services from the front yard. They never felt the 20-degree air that whipped around their skimpy clothing as they watched their home burn.
They were in shock.
This was only the beginning of the nightmare for the Sams and their children.
The ‘cheap’ insurance company was slow to respond to the emergency; in fact after dealing through the maze of automated responses, they were totally frustrated and still not knowing where to turn.
When Samantha finally spoke with a representative on the phone, she was told her policy would cover the damage to the house. Unfortunately, the cost to build houses in their area had risen and the policy limits had never been adjusted. To make matters worse, when advised of their personal belongings policy limit, they realized they were woefully underinsured.
This policy also covered the costs of a place to stay, food and other expenses, for up to a month after the fire. However, due to inefficiencies and lack of personal advice, the Sams’ rebuilding process took more than a month to even start. On top of this, they had to rely on friends and their church to provide for the clothes on their backs.
Valuable time slipped by as they waited for action.
The family found itself forced to divide and move into the homes of relatives while the situation was resolved.
The slow-to-come reimbursements sent the family’s finances into a downward spiral.
Then things got even worse.
Their coverage didn’t provide enough to cover the costs of rebuilding a home equal to the one they lost. The minimal limit on their belongings wouldn’t even refurnish a living room equal to the one that burned.
In just five years, inflation and rising construction costs had rendered their coverage inadequate.
A second loan was required to cover the additional expenses of rebuilding a comparable home, and fill it with appliances, furniture, computers and other essentials. The family’s budget was not only blown, it was now tighter than ever with the new payments.
THE AFTERMATH
Within a few months, Tisha’s house was rebuilt and the family was settling in to their new lives. The past was behind them. They had climbed out of the rubble and were on their way toward a comfortable life once again.
While Tisha’s family was putting their new home in order, Samantha and her family were still trying to find affordable contractors to start work on their house. The ‘cheap’ insurance 1-800 number was providing little assistance when they needed it most. The horror just dragged on for the Sams.
Ultimately, the Sams spent more than anticipated on the rebuild and didn’t have enough money to properly furnish the home. For months after moving into the new house, nearly every room lacked at least one major item. Specifically, the kids room lacked bed frames, the living room lacked seating, and there was still no kitchen table.
Tisha and her family felt mostly re-established within a year of beginning their rebuilding journey.
At the end of that first year, the Sams were struggling to pay the bills with the additional loan payments pushing the boundaries of the family budget. Samuel picked up a second job and was rarely home to see his wife and children. Child care costs were also eating the family’s budget away as Samantha also had to increase her work efforts to help make ends meet.
Financial strain, exhaustion, and the stress of recovering from a house fire, can do more than just destroy the framework of a house, it can destroy a home as well.
Within two years of the fire, the tensions became too much for the young couple and led to divorce.
The Sams’ American dream was shattered that night in December and became a nightmare that haunted the couple for nearly a decade after they split.
BE PREPARED
The hands that helped Tisha and her family through the ordeal, were the hands of an attentive insurance agent, who knew their needs and was working within the guidelines of a quality homeowners policy.
If the policy is inadequate before the fire happens, there is little that can be done, even by the nicest of agents. Your home is your biggest personal asset; why would you want to protect it with discount coverages?
House fires are responsible for inflicting $7 billion in damages to homes in the United States annually. That number climbs every year as the cost of materials and labor to rebuild a home continue to skyrocket.
Having a homeowners policy that doesn’t cover more than the value of the home when the policy was created is flirting with financial disaster.
When it comes to insurance, cheaper isn’t always better. What matters are the details contained in each individual policy. Also make sure your agent knows your needs and a level of expectations are established with both parties.
Signing your homeowners policy contract is definitely one time where it pays to read, and understand, the fine print. A professional agent can guide you through this process.