As the flood waters begin to gradually recede in Texas andLouisiana, residents are going home to assess the damage and seewhat remains after Hurricane Harvey swept through. Many will beunsure of where to start or how to manage the claims process.

Safety should be the first priority whenreturning to a home or business. Do not enter unstable buildings orstructures that need to be cleared for re-entry by localauthorities. Before entering the structure, walk around theexterior to make sure there are no major holes or other signs ofcollapse, loose pipes or downed wires that could pose a danger.Beware of broken windows and doors, since they may allow snakes,alligators and other wildlife to enter the premises.

Utility dangers

If there are fuel oil or propane tanks, make sure to turn offthe fuel valve on the tank. Natural gas should be turned off at themeter. Only enter buildings during the day, since there will bemany hazards that may not be visible at night. Never use candlesfor temporary lighting because of the fire risks. Use a flashlightor battery-operated lantern.

“Turn off your main water valve, as well as the main electricalbox,” cautions Don Carson, executive vice president and managingdirector for Burns & Wilcox, a large personal insurancewholesale broker and underwriting manager in North America. “It isalso important to be cognizant of any safety issues that may causefurther damage to the home or occupants.”

Do not enter any buildings with sagging ceilings, large cracksin the walls or floors, or areas where the walls are out ofalignment, since the structure could be unstable. Pregnant women,young children, those with compromised immune systems orindividuals with other health issues should avoid being in floodedstructures. Mold can begin to form in 24-48 hours withenough moisture and humidity, and given the trillions of gallons ofwater involved with Hurricane Harvey, it won't take long forinteriors of structures to become compromised. Removing wetmaterials and allowing air to circulate in the structure will helpto mitigate some of the growth.

Safety also applies to what is worn in the building. Heavy workor thick-soled rain boots provide greater protection againstexposed nails, popped boards, mountains of debris and unexpectedencounters with some wildlife. Heavy rubber or leather gloves, longpants and long-sleeved shirts will also provide protection againstsome of these dangers.

Capturing the damage

“Take as many pictures as you can,” adds Carson. “This will aidin the insurance claims process. Photographic evidence of allvisible damage, the height of the flood waters and flood levels inand around your house, and damaged contents is extremely helpful.”Shooting video of the damage inside and out of the structure willalso aid in capturing the extent of the damage.

After everything is photographed, damaged property should be separated from undamagedproperty in order to be reviewed by the carriers. Flood policiesrequire that damaged property be organized and examined by thecarrier, however homeowners policies only require that the damageditems be shown to the carrier.

Take a careful inventory of what was damaged. Insurers will askfor documentation, but will understand that much of thedocumentation may have been lost in the flooding. Proof of lossneeds to be sent within 60 days after a loss, and must be signedand sworn to for claims filed under homeowners or flood policies.The Texas Department of Insurance (TDI) has already asked insurersto waive the time requirement, so homeowners should check theTDI website for updates.

Unplug any electric appliances like televisions, computers,stereos and microwaves, since there could be a power surge when theelectricity comes back on, causing further damage. Some electronicscan actually be cleaned and restored if they are not turned on, sounplugging them could reduce replacement costs as well.

Related: Texas' No. 1 homeowners' insurer responds toHarvey, offers tips

Shawn Hagdorn helps to cover the roof of his father's homethat was damaged in the wake of Hurricane Harvey, Monday, Aug. 28,2017, in Rockport, Texas. (AP Photo/Eric Gay)

Homeowner responsibilities

Damage from flooding is not covered under a traditionalhomeowners policy unless there is damage from wind, falling treesor other covered losses. Any flood damage would fall under a flood policythat was purchased separately from the homeowners policy.

Homeowners may not be aware that most policies have a sectionentitled “duties after a loss” that outlines insureds'responsibilities. First, they should report the claim as soon as possible under theflood or homeowners policy by contacting their agent or the companythat sold them the policy. Carriers are sending large numbers ofadjusters to the area and even if owners don't have a flood policy,they should still report the loss, since the actual cause of thedamage will determine whether or not there is coverage.

Homeowners are also responsible for mitigating any additionaldamage to their property. If a tree fell on the roof, it should beremoved and the roof tarped or repaired to prevent additionaldamage from rain and other elements. Broken windows should berepaired, replaced or boarded up for the same reason. Water shouldbe removed from the floors and wet carpets should be taken from thebuilding to reduce mold growth and enable them to dry more quickly.Any items moved outside to dry that are still salvageable should beput into a secure area to protect them from theft. Keep track ofany expenses incurred to repair or replace property, since thesewill be submitted as part of the insurance claim.

Residents should also keep receipts for additional expenses suchas hotel rooms, meals, replacement clothing, and the like. Althoughthere is no reimbursement for additional living expenses under aflood policy, there may be under a homeowners policy if there is acovered loss.

Clean-up basics

Wet contents such as books, clothing, furniture and other itemsshould be removed from drawers, cabinets and shelves and laid outto dry if possible, since some can be cleaned and restored. Opendresser and cabinet drawers to allow air to circulate inside and tokeep the drawers from sticking together.

Hard surfaces can be rinsed with clear water and then cleanedwith standard cleaning products and disinfectants. Many peoplemistakenly believe that everything should be cleaned with bleach,which is corrosive and can cause even more damage.

Some homeowners will hire restoration or other contractors toassist with the cleanup. Insurers may recommend companies, but thehomeowner makes the final decision as to who is hired. Make sure tocheck references before hiring any contractors. For thosehomeowners attempting to handle their own cleanup or volunteeringto help others, the Restoration Industry Association offers someguidelines.

Severalhundred thousand vehicles were damaged by Hurricane Harvey.Flood-damaged cars will be a risk for mold, electrical issues andother problems. (Photo: Interstate Restoration)

Filing a claim

“Based on our initial observations, claims may fall under eithernamed windstorm or flood coverages, or possibly both,” explainedGary Marchitello, head of property broking for Willis TowersWatson. “That determination, however will be based specifically onthe facts related to each insured and the specific policy wordinggoverning those facts.”

Property claims will not be the only types of claims that arisefrom Hurricane Harvey. Business interruption claims are also likely tobe filed and could take some time to calculate. “After assessingthe damage, one of the first things a business owner will want todo is to retrieve his or her business personal property list,” saysStacy Mazur, CEO of Ft. Worth-based Interstate Restoration.“Hopefully that list is complete and up to date, along with photosof the property.”

“Even if a specific property is not damaged, an insured'sproperty may face other obstacles to its operations. For example,it could be impaired by civil authority, or it may not have themeans of ingress/egress due to nearby road closures,” addedMarchitello.

Damaged autos will be covered under the owner'sauto policy, although residents should be cautious when purchasinga used vehicle because scammers may try to sell flood-damaged cars in the coming weeks andmonths.

The Texas Legislature enacted HB 1774 to reduce the numberof frivalous lawsuits and to ensure that insurance companies werenotified when policyholders were unhappy with how their claims werehandled before a suit was filed. (Photo: Shutterstock)

Lawsuit reform efforts won't affectclaims

There has been a fair amount of discussion and misinformation onsocial media concerning a new law that takes effect in Texas onSept. 1, 2017. The primary purpose of the new statute (HB 1774) is to require writtennotice of a dispute before a lawsuit is filed by a homeowneragainst an insurance company. According to a statement from theTexans for Lawsuit Reform (TLR), “The requirement for a writtenpre-lawsuit notice (not a pre-claim notice) to the insurancecompany ensures the company is aware of its policyholder'scomplaint and has had an opportunity to adequately address thatcomplaint before being sued.”

“Policyholders do not lose any protections with these changesthat go into effect on September 1,” explained Joe Woods, vicepresident, state governmental relations for the Property CasualtyInsurers Association of America (PCI) in a press release. “The newlaw does not bar access to the courts, nor does it preventconsumers from retaining legal counsel. Consumers still have alllegal remedies available under the consumer protection laws in theevent an insurer engages in bad faith conduct. The Texas Departmentof Insurance is available to handle any complaints about insurers.The new law does not take away any right to sue and does notdiminish any cause of action that a person has against an insurancecompany.”

The process for filing a claim is exactly the same as it wasbefore the statute was enacted. Many insurers are already in Texasand are prepared to bring in additional resources as needed toservice their policyholders.

TLR President Dick Trabulsi said, “The Texans affected by thishistoric disaster deserve our full support as they begin to pick upthe pieces.” He also warned homeowners to “beware of anyone –lawyer, adjuster, contractor or anyone else – claiming to help youget more money from your insurance company.”

The new law was designed to encourage out-of-state adjusters to come work in Texasfollowing a major disaster like Harvey because the extent of thedamage will require their assistance in order to evaluate andaddress all of the claims in a timely manner, explained Trabulsi.“It will also prevent unscrupulous individuals from takingadvantage of thousands of hard-working Texans,” he added.

Related: Top lawmakers call on Congress to pass hurricanerelief bill