Claim Insight: What if I found more damage after repairs started?

You’ve filed an insurance claim, and the repairs on your home are finally underway. Things are looking up, until the contractor uncovers additional damage that wasn’t caught during the initial inspection. It’s a scenario that can send any homeowner’s stress levels skyrocketing.

Don’t worry; while finding more damage after repairs have begun can be a headache, there are steps you can take to address the issue smoothly and ensure you’re properly covered. 

Here’s what to do if you find yourself in this situation.

1. Stop Work and Assess the New Damage

The first thing to do when more damage is discovered is to halt the ongoing repairs. While it might be tempting to push forward and get the job done, stopping work is crucial to prevent further complications. Continuing with the repairs without addressing the new damage could lead to additional costs or even invalidate parts of your insurance claim.

Have the contractor provide a detailed assessment of the new damage. This should include:

• A description of the damage: What exactly was found?
• Photos or videos: Visual evidence will be vital when communicating with your insurance company.
• A revised estimate: How much will it cost to repair this newly discovered damage?

2. Review Your Insurance Policy

Before contacting your insurance company, take a moment to review your policy. Understanding the coverage limits, exclusions, and terms can give you a clearer picture of what to expect and how to present your case. Specifically, check for:

• Coverage for additional damages: Some policies include provisions for "hidden damages" or damages discovered during repairs. Understanding these terms can help you determine if the new damage is covered.
• Deductible requirements: Be aware of any additional deductibles that might apply if you file for the newly discovered damage.
• Claim deadlines: There might be specific time limits for reporting additional damages, so knowing these deadlines is crucial.

3. Contact Your Insurance Adjuster

Once you’ve assessed the damage and reviewed your policy, reach out to your insurance adjuster immediately. Provide them with the contractor’s new findings, including the description, visual evidence, and the revised repair estimate. Be clear that this damage was uncovered after the initial claim was filed and during the repair process.

Here’s what you should discuss with your adjuster:

• Additional claim or supplement: Ask if you need to file a new claim for the additional damage or if it can be added as a supplement to your existing claim.
• Inspection: The adjuster may want to inspect the new damage before authorizing additional funds. Be prepared to schedule a follow-up inspection.
• Coverage confirmation: Confirm with the adjuster that the new damage is covered under your policy, and clarify any potential out-of-pocket costs you might incur.

4. Document Everything

Documentation is key when dealing with insurance claims, especially when new damage is discovered mid-repair. Keep a detailed record of all communications with your insurance company, including emails, phone calls, and any letters. Make sure your contractor also keeps detailed records of the additional damage, the repair process, and any changes to the original repair plan.

You should document:

• Dates and times: Record when the damage was discovered, when you reported it, and when any inspections or approvals took place.
• Conversations: Note what was discussed during phone calls or meetings with your adjuster and contractor.
• Costs: Track any additional costs incurred due to the new damage, including revised estimates and invoices.

This documentation will be invaluable if there are any disputes or if you need to reference these details later on.

5. Get Written Approvals Before Resuming Work

Once your insurance adjuster has inspected the additional damage and confirmed coverage, make sure you get written approval before resuming repairs. This might be an updated claim approval or a supplemental payment agreement from your insurer. Having everything in writing ensures that there are no misunderstandings and that you won’t be left with unexpected expenses.

• Revised repair plan: Confirm that your contractor has an updated plan that accounts for the new damage and the adjuster’s input.
• Payment agreement: Ensure that your insurance company has approved the additional costs and that you understand how and when those costs will be covered.
• Written authorization: Secure a written go-ahead from your insurer to proceed with the repairs, including the additional work.

6. Understand the Impact on Your Claim

It’s important to know how discovering additional damage might affect your insurance claim. Depending on your policy and the extent of the new damage, this could result in a higher payout, a new deductible, or changes to your claim’s timeline. Discuss with your adjuster how these new developments will impact your overall claim, including any possible delays in the repair process.

Key points to discuss:

• Timeline changes: Ask how the discovery of new damage might affect the timeline for claim processing and repairs.
• Impact on coverage limits: Ensure that the additional damage doesn’t push your claim over the policy’s coverage limits.
• Possible out-of-pocket expenses: Clarify any additional costs you might need to cover yourself.

7. Consider Working with Tugboat or Hiring a Public Adjuster if Needed

If you’re struggling to get the new damage covered, or if you feel that your insurance company is not handling your claim fairly, consider getting working with us here at Tugboat. We can help you advocate for yourself effectively when communicating and negotiating with the insurance company.

If the damage is denied and the claim gains complexity past what you’re comfortable advocating for, we would suggest and could connect you to a trusted public adjuster to hire. Public adjusters work on your behalf to directly communicate and negotiate with the insurance carrier.

8. Prepare for Possible Out-of-Pocket Costs

While your insurance should cover the additional damage if it’s within your policy’s terms, there’s always a chance that you might face out-of-pocket costs. This could happen if the new damage isn’t covered, if it exceeds your policy limits, or if a new deductible applies. Be prepared for these potential costs by discussing them with your contractor and adjuster, and budgeting accordingly.

9. Keep the Lines of Communication Open

Throughout this process, maintaining clear and consistent communication with your insurance company, contractor, and any other parties involved is crucial. Make sure everyone is on the same page regarding the scope of the repairs, the costs, and the timeline. Regular updates can help prevent misunderstandings and ensure that the repairs stay on track.

10. Stay Informed and Proactive

Finally, the key to managing additional damage discovered during repairs is staying informed and proactive. By understanding your insurance policy, communicating effectively, and documenting everything, you can navigate this unexpected challenge with confidence and get your home back in shape as quickly and efficiently as possible.

Conclusion: Handling the Unexpected with Confidence

Discovering more damage after repairs have started can be a stressful experience, but by following these steps, you can minimize disruption and ensure that your insurance claim is handled properly. 

Remember, the key is to stop work immediately, communicate with your insurer, and document everything carefully. With the right approach, you can tackle these surprises head-on and ensure your home is fully restored without unnecessary delays or expenses.

If you have any questions or have trouble getting additional damage covered within your claim, feel free to create an account on Tugboat's platform. We’re here to help you every step of the way!