Insurance coverage in disaster zone - asheville/swannanoa/black mountain

[Pranav Parikh]

Hi everyone, I have a property in Swannanoa that was affected by the hurricane. I have Proper insurance, tailored to short term rentals. As many STRs in the area, I have been dealing with cancellations and loss of revenue and will likely to do so for the forceable future. The damage to the property can be handled over the next several weeks (large tree on roof, landscaping destroyed), though it is unclear when we will regain power and water (potentially weeks beyond repair?). I also don't know if there is damage to the roof until I clear away the massive tree. I was told by my insurance agent that a % of loss of revenue can only be covered by insurance until the property damage is fixed, which could pre-date the return of essential utilities. I still cannot rent this property without essentials like water/power despite the repairs.  Has anyone dealt with this with their insurance company? Does anyone know of stipulations that relate to natural disasters? I realize that this is likely specific to Proper insurance as most insurance plans don't even offer commercial coverage. 

My thoughts and prayers to all those affected. I sure am glad to see the communities come together to help each other. 

[John Underwood]

I never thought about this one.

From the insurance point of view they can only cover the house and it's repairs. They can't control the utility company repairs, so this makes since.

Hopefully they will get all these online quickly too.

[Paul Cox]

Reposting from one of our FB forums:

Homeowners who need to file insurance claims - read on. (If you can not access your home at this point to assess, assume you'll be filing an insurance claim and keep reading.)

In 2018 I had to file 3 Flood claims and 3 Wind claims on 3 different oceanfronts on Topsail Island during Hurricane Florence. I, unfortunately, have alot of experience in catastrophic losses and large scale insurance claims.

This is my attempt to give back to this community and provide some of my hard earned wisdom in the hopes that it helps you navigate this horrific situation.

1. Get a support network now. I promise, the only people that will truly understand what you are going through are the people going through it with you right now, or the people who have been through something similar.
   
   Your friends won't understand, your family won't understand - they can sympathize - but they can only empathize so much. Be mentally and emotionally prepared for the attitude - well, if you can afford a second (or third or fourth home) then you can afford all of this. Be also mentally and emotionally prepared for the folks that think just because this is not your primary home, it's somehow less of a catastrophic event for you because others did lose their primary homes.
   
   That's why it's vital for you to form support networks with people who are in your same boat - ideally in the same community.
2. This truly pains me to share - but most of the disasters I'm seeing across Western NC are going to be considered flood events and if you do not have a separate flood policy you will likely get no coverage. That's what happened to many of the towns in 2018 - entire towns under water - but no one had flood insurance. I know there will be SOME disaster relief - but... Best to call your insurance agent now.
3. File a claim NOW - get in line for adjusting. You can not make repairs until your adjuster from the insurance company comes out to assess your damage and there will be a back log months long. Put your name in the queue NOW. The absolutely best case scenario is a week from now you finally see your home and miraculously have no damage and you call off the adjuster. During Florence we couldn't physically get on the island until a full week later. Most waited to call their insurance companies until then. I called the next morning after the storm hit. I literally had my insurance companies adjuster be one of the very first ones on the island and that made ALL the difference. In this case, speed is your friend.
4. If you can, pay for repairs out of pocket (or on a credit card or with a loan) do so and then submit the actual bills to the insurance. (only after the initial adjuster has been there) After comparing notes with dozens and dozens of owners during Florence I was one of the few that got insurance coverage for the actual repair costs and was "almost" solvent. Most others who got their checks first and then went to get repairs done found that their checks did not even remotely cover their necessary repairs.
5. The longer you wait to make repairs, the worse the damage gets - wet things in hot humid weather grow mold FAST.
6. To hire a public adjustor or not - most will say yes - I say, depends on the person. I personally fired my public adjustor - it's a long story - but I was capable and better able to advocate for myself better than a public adjustor could. But I know I'm in the minority. Understand you're in for a long awful emotional, physical, financial and mental journey. It's not for the faint of heart. I think I have an above average amount of grit and resilience from past adverse events and Florence and the aftermath near broke me. Be prepared.
7. Even if your personal home is only mildly impacted, but your community who relies on tourism has a BIG impact, understand that this will take months or years to recover from and some communities will not recover. If your home is an investment property that you rely on guest stays to pay your mortgage and insurance and other expenses - be prepared for the community impact to you as well.
8. Many mortgage companies will offer mortgage DEFFERALS during this time - it's a great way to manage short term cash flow - however, please keep in mind - this is NOT mortgage forgiveness. If you have a $5k mortgage and you get a 6 month deferral, you will owe the full $30k in 6 months. It doesn't just skip 6 payments and tack it on at the end.
9. When asking questions - ensure you're asking them of people who are knowledgeable in what you are asking. The internet is both a beautiful and a terrible thing. Do not rely on crowdsourcing when the impacts are this big. Pay for professional advice and advocacy when needed.
10. Support each other - you WILL get through this. Likely battle scared and forever changed - but you WILL get through it. Love, peace and prayers to every single person impacted.

[Collin Hays]

We still have 10 properties without water.  But this isn't an issue that an insurer covers - they do not indemnify a homeowner for some other entity's issue.  

[Michael Baum]

Hey @Pranav Parikh, I would get on the horn with Proper and ask.

Essentially the property is unrentable while there is no power or water.

[Sarah Kensinger]

I have no idea either! But be very thankful you at least have the loss of income until the property is fixed. So many hosts in the area do not, and just lost all their income for the season! For a couple hosts/owners it's a major revenue loss!

[JD Martin]

Quote from @Pranav Parikh:

Hi everyone, I have a property in Swannanoa that was affected by the hurricane. I have Proper insurance, tailored to short term rentals. As many STRs in the area, I have been dealing with cancellations and loss of revenue and will likely to do so for the forceable future. The damage to the property can be handled over the next several weeks (large tree on roof, landscaping destroyed), though it is unclear when we will regain power and water (potentially weeks beyond repair?). I also don't know if there is damage to the roof until I clear away the massive tree. I was told by my insurance agent that a % of loss of revenue can only be covered by insurance until the property damage is fixed, which could pre-date the return of essential utilities. I still cannot rent this property without essentials like water/power despite the repairs.  Has anyone dealt with this with their insurance company? Does anyone know of stipulations that relate to natural disasters? I realize that this is likely specific to Proper insurance as most insurance plans don't even offer commercial coverage. 

My thoughts and prayers to all those affected. I sure am glad to see the communities come together to help each other. 

 You're not likely to have to worry about it, because there's so much damage everywhere here that unless you have an inside scoop to a contractor you're going to be part of a very long list of people getting repairs done. 

I have inside knowledge of utilities here (I worked here in this industry for over 20 years) and you're going to have water and power back shortly if you're in Swannanoa. Virtually guaranteed it's before your house is back to pre-destruction condition.