If you’re dealing with a fire loss, here are five common mistakes policyholders make — and how to avoid them.
Mistakes Policyholders Make
1. Jumping Into Cleanup Too Soon (Mitigation ≠ Reconstruction)
One of the first duties of any policyholder after a fire is to mitigate further damage. But mitigation doesn’t mean tearing things down, hauling debris, or hiring contractors immediately.
Too often, we see well-meaning property owners begin demolition, throw away damaged belongings, or sign with restoration vendors before the insurance company has agreed to the scope of the loss. That can be a costly mistake.
Pro Tip
Do not discard personal property items until they have been thoroughly documented. Your right to be compensated for these items depends on proving they existed, were damaged by the loss and the replacement value.
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2. Failing to Document — or Rushing the Process
We understand the urge to get things moving quickly. But when it comes to a fire claim, slow is smooth, and smooth is fast.
At this stage, the only things you should be doing are:
- Reporting the loss to your insurance company
- Mitigating further damage (e.g., covering the roof, boarding up windows, etc.)
- Securing temporary housing that fits your family’s needs
Take time to understand your policy and your situation before rushing into repairs. And make sure all communication with the insurance company is documented in writing — every email, every text, every decision. It may save you later.
3. Not Knowing Who Works for Whom
This one is big: The adjuster sent by your insurance company represents the insurance company. Not you.
Many policyholders assume the carrier’s adjuster is a neutral party. They’re not. Their job is to assess the loss through the lens of the policy and the insurer’s financial interest or liability. This is one of the key mistakes policyholders make.
Similarly, contractors cannot legally negotiate your insurance claim for you — nor should they. Contractors are great at building and fixing things, but they are not claims experts. We often see policyholders hire contractors before they’ve even gotten a full damage evaluation. That can lead to scope issues, funding gaps, and disagreements later.
Pro Tip
Only hire contractors for emergency mitigation services until your claim is properly documented and evaluated.
4. Not Understanding the Policy
Your insurance policy is a contract. It’s often many pages long and filled with technical terms, exclusions, and conditions. That’s by design.
To advocate for yourself, you need to understand what coverages you have, what the policy requires of you, and what deadlines you need to meet. You don’t need to be an expert — but you do need to know enough to ask the right questions.
If you’re not sure what your policy says, now is the time to get clarity — before problems arise.
Pro Tip
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5. Trying to Do It Alone
Let’s face it — this is likely your largest financial investment, and it may also be the most emotionally draining process in your life. Trying to manage the details while keeping your family or business afloat is a huge burden.
A qualified public adjuster works for you, not the insurance company. Our job is to help you:
- Understand your policy
- Document your damages properly
- Communicate with the insurance company
- Negotiate a fair settlement
You don’t have to go it alone — and frankly, you shouldn’t. The stakes are too high.
Final Thought:
If you’ve just experienced a fire loss, I hope this helps you avoid some of the common pitfalls of the types of mistakes policyholders make that we see every day. And if you ever feel like you need help, we’re here to be your advocate in the process.
– Justin Skipton
Public Adjuster | Vice President, NAPIA
Skipton & Associates
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