How Do You File a Storm Damage Insurance Claim in New Jersey, and Do You Need a Public Adjuster?

Report the damage to your insurance company as soon as you can, photograph everything before you throw anything out, make temporary repairs to stop more damage, and work with the adjuster your insurer assigns. In New Jersey, a public adjuster is optional: you don't need one to file or settle a claim. Keep every receipt and write down every conversation.

I'm Dennis Mark Interdonato with The Dennis Mark Group. Before real estate, I was a New Jersey home builder and residential remodeler, and I helped homeowners rebuild after Superstorm Sandy. Here's the claim process the way New Jersey's Department of Banking and Insurance (DOBI) lays it out, plus what I tell homeowners in Monmouth and Ocean County who are wondering whether to rebuild or sell.

What are the steps in a storm damage claim?

1. Report the loss. Call your agent or insurer as soon as possible, have your policy number ready, and write down the claim number and your claim representative's contact information (NJ DOBI). DOBI notes most insurance companies have a time requirement for filing, so don't wait (NJ DOBI).
2. Document the damage. Take pictures of all damaged property before you dispose of it, and keep the damaged items until the insurer inspects them or tells you they can go. You'll be asked to list everything destroyed, damaged or missing. If you don't have a home inventory, DOBI suggests building one room by room from memory, with where and when you bought each item, the cost, brand and model.
3. Prevent more damage. Make the temporary repairs needed to protect the house, like boarding up broken windows, and save every receipt for your claim.
4. Meet the adjuster. Your insurer assigns an adjuster to inspect the damage and determine coverage. Try to be there, and consider having a contractor present or reviewing the adjuster's report before you settle. Ask for a copy of the damage estimate. You're not required to use the contractor the company recommends.
5. Don't rush the settlement. DOBI says not to feel rushed or pushed to agree. If the company denies part of the loss, it has to explain how coverage is excluded under your policy.
6. Watch how the money is paid. A claim can come in several payments, starting with an emergency advance. Payments for the structure may be made out to you and your mortgage lender, and lenders may hold that money in escrow and release it as the work is completed.
7. Report hidden damage. If your contractor opens a wall and finds damage the adjuster didn't, contact your insurer to resolve the difference.

What does homeowners insurance cover after a storm?

DOBI says most standard homeowners policies cover losses from fire and lightning, smoke, windstorms and hail, but some include a separate wind or hail deductible, or a hurricane deductible. Flood is different: homeowners policies exclude water damage caused by flooding, and only a separate flood insurance policy, from the National Flood Insurance Program or a private insurer, covers it. A new flood policy normally has a 30-day waiting period before it takes effect (NJ DOBI). Read your declarations page now, before you need it.

Do you need a public adjuster in New Jersey?

No, but you can hire one. Public adjusters are licensed by DOBI and work for the policyholder to appraise damage and negotiate the claim. They're paid from the settlement, typically a percentage of what you receive. State regulation requires their contracts to list the services and the maximum fee, which has to be "reasonably related to services rendered" (NJ DOBI).

The insurer's adjuster comes at no cost to you. If you're thinking about a public adjuster, check that they're licensed with DOBI, ask for references, read the fee in the contract, and weigh it against how complicated your claim is.

How do you hire a contractor after a storm?

DOBI warns that fraudsters take advantage of the chaos after a disaster. Its advice: check licensing and references, get a written estimate before work begins, don't sign a contract before the adjuster has examined the damage, don't pay the full amount up front, and never sign over your insurance settlement. A contractor should expect a percentage at signing and the rest when the work is done. Most structural repairs also need a permit from your town's construction office (N.J.A.C. 5:23-2.14).

This is where a builder's background helps. I'll read the adjuster's estimate and a contractor's bid with you and tell you what looks right, what's missing, and what it should cost. I got a guy for everything, if you need one.

Where do you live while the house is being repaired?

DOBI says many policies provide additional living expense coverage when you have to leave your home because of a covered loss. If the loss isn't covered, you won't be reimbursed. Either way, keep records and receipts for any lodging and related costs (NJ DOBI).

What if you'd rather sell than rebuild?

That's a real option, and it deserves real numbers. I'll show you what the home should bring repaired and as-is, side by side with what the claim will pay. Before you list, ask your insurer and your mortgage lender how a sale affects money they're holding for repairs. I walk through those choices in repair it or sell as-is.

Who do you call if you and the insurer disagree?

Try to resolve it with the company first; sometimes it helps to have your contractor talk directly with the adjuster. If that doesn't work, DOBI's Consumer Hotline is 1-800-446-7467, 8:30 a.m. to 5 p.m. Monday to Friday, and you can file an inquiry or complaint on DOBI's website. DOBI can also help you decide whether arbitration or mediation is an option.

Frequently Asked Questions

How long do I have to file a storm damage claim?

It depends on your policy. DOBI notes that most insurance companies have a time requirement for filing, so report the loss as soon as you can and check your policy for the deadline.

Can I choose my own contractor?

Yes. DOBI says you're not required to use the contractor your insurance company recommends.

Why is my mortgage company on the insurance check?

DOBI explains that payments for the structure may be made out to you and your lender when there's a mortgage, and the lender may release the money as repairs are completed. Ask your lender how its process works.

Does homeowners insurance cover flood damage from a storm?

No. DOBI says homeowners policies exclude flood damage; only a separate flood insurance policy covers it.

This is general information, not legal, tax or lending advice. Your insurance policy, your insurer and DOBI are the authorities on your claim.

About the author

Dennis Mark Interdonato is a REALTOR® and Master CDRE® who leads The Dennis Mark Group at Keller Williams Realty Ocean Living in Point Pleasant, NJ, helping buyers and sellers throughout New Jersey make their next move, with Monmouth and Ocean County as home base. Read more about Dennis Mark.

Keep reading

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• Plan it step by step with the free Life Events Guide.
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• Weighing repair against an as-is sale? Read repair it or sell as-is.
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• Have a question this didn't answer? Send it to Dennis Mark and it may become the next article.