Storm damage in Acadiana
The claim came back short. A denial is not the end of it.
A denial is not the end of the claim, and a low settlement is not a final offer. Work the claim first. Selling is what you do if the claim will not get you to a repaired house, not instead of trying.
Work the claim first
Five steps, in this order
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Get everything in writing
The denial letter, the policy language it relies on, and the adjuster's full line-item estimate. A phone call where somebody says no is not a denial you can do anything with.
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Read the deductible and the roof endorsement
Named storm deductibles in Louisiana are usually a percentage of the dwelling coverage rather than a flat figure, so on a larger policy they can be many thousands of dollars. If the roof is on an actual cash value schedule, that is where the missing money went.
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Put a real contractor estimate beside it
Line by line, with scope. Most successful reopenings are not arguments about opinion. They are lists of items the adjuster did not write down.
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Escalate, and use the regulator
Reopen the claim in writing. If it stalls, file a complaint with the Louisiana Department of Insurance, which requires a response. A licensed public adjuster or an attorney is the next step when the numbers justify one.
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Then decide about the house
Only once you know what the claim will actually pay. Deciding to sell before that is deciding without the main number.
What a damaged house does on the market
The problem is financing, not interest
A house with an open roof, water damage, or a tarp on it does not fail to sell because nobody wants it. It fails because most buyers need a loan, and a lender will not fund a house in that condition. The appraisal comes back subject to repairs, the repairs cannot happen before closing because the seller has no money, and the deal dies there.
That collapses your buyer pool to two groups: cash buyers, and buyers using a renovation loan who are patient and rare. It is why the price on a damaged house behaves differently from the price on a tired but sound one.
The insurability problem behind it
There is a second issue underneath the first. In the current Louisiana market, a house with an aged or damaged roof can be difficult to insure at all in the voluntary market. Louisiana Citizens exists as the insurer of last resort, and by statute it is priced above the voluntary market, so it is a backstop rather than a solution. A buyer who cannot get an affordable policy cannot close, however much they like the house.
Fixing the roof solves both problems at once, which is why the roof is almost always the first thing to look at.
This page is general information about how property claims work in Louisiana. It is not legal advice, it is not insurance advice, and Chris is neither an attorney nor a public adjuster. For a specific claim, talk to a Louisiana attorney or a licensed public adjuster.
Where it lands
Three endings, depending on the claim
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It pays in full
Best outcome. The house goes back to insurable and financeable, and you can list it into the full buyer pool or keep it. The servicer draw schedule sets the pace.
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It pays partially
Works when the remaining damage is cosmetic enough to appraise. Price it honestly, disclose the claim history, and expect a buyer who is doing the rest of the work themselves.
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The gap is too large
One closing date, no repairs, no draw schedule, and the claim proceeds handled explicitly in the agreement. A lower number, and a certain one.
Claim questions
What homeowners ask after a denial
The adjuster came in far below my contractor. Is that normal?
It is common enough to have a standard answer. Get the full estimate the adjuster wrote, line by line, in writing, and put your contractor's estimate next to it. Most large gaps come down to three things: scope items the adjuster left out, depreciation withheld on a policy that pays actual cash value, and a named storm deductible that is a percentage of the dwelling coverage rather than a flat amount. Each of those is arguable in a different way.
What is the difference between actual cash value and replacement cost?
Replacement cost pays what it takes to replace the damage today. Actual cash value pays that minus depreciation for the age and wear of what was damaged. Many Louisiana policies now put roofs on an actual cash value schedule once they pass a certain age, which is why an owner with a fifteen-year-old roof and a total loss can receive a fraction of what a new roof costs. Read the roof endorsement, not the summary page.
Can I appeal a denial?
Yes. Ask for the denial in writing with the policy language it relies on, request your complete claim file, and reopen with the documentation that answers the stated reason. If that stalls, the Louisiana Department of Insurance takes consumer complaints and will make the insurer respond. Licensed public adjusters work these files for a percentage, and attorneys take the ones with real money in them.
How long do I have?
Less time than people assume, and the exact deadline depends on your policy and on what kind of event it was. Louisiana law also sets a period in which an insurer must pay once it has satisfactory proof of loss, with penalties when it does not. Do not work this out from a website. A Louisiana attorney or a licensed public adjuster can tell you in one call which clock you are on and how much of it is left.
My mortgage company is holding the claim check. Why?
Because the lender has an interest in the collateral. A servicer typically endorses claim proceeds into an escrow account and releases them in draws as the work is inspected and completed. It is legitimate, it is slow, and it means you generally cannot take a settlement and walk away with it while the mortgage is outstanding. Ask the servicer for their loss draft package early, because it has its own paperwork.
Can I sell a house with an open claim?
Yes, and the claim itself has value that has to be dealt with in the purchase agreement. Either the settlement is assigned to the buyer and the price reflects that, or you keep the proceeds and the price reflects the damage instead. What you cannot do is leave it vague. Write down who gets the claim money before anybody signs.
No obligation
Send the address and where the claim stands
Denied, underpaid, still open, or already settled. Each one leads somewhere different and it is worth ten minutes to find out which.
Take it further
Regulators and standards you can use
Every claim on this page can be checked against a public source. These are the ones it rests on.
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Insurance complaints
Company lookups, the consumer complaint process, and the state programs behind a stronger roof.
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Louisiana Citizens
The state insurer of last resort, priced above the voluntary market by statute, which is why it is a backstop rather than a plan.
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FORTIFIED roofs
The building standard behind Louisiana’s roof grants and insurer premium credits, published by the institute that wrote it.
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FEMA flood maps
The current flood zone for a specific address, from the source. Zones vary lot by lot and the maps are revised.
Related
Where to go next
The pages most people read after this one.
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Roof damage
Five ways to fund a roof, and what a failed one does to your buyer pool.
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Compare your options
Four paths for a house that has to move quickly, and what each costs in money and in weeks.
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Listing versus cash
The full arithmetic on one house, three ways, with the assumptions written down.
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Prep to sell
Which repairs pay for themselves in this market and which never do.