Your home is often exposed to fire, storm, termites, and flood damage. The aftermath of damage can be devastating to your home and finances. Typically, it is a traumatic experience to determine the right path after major damage. You may opt for financial recovery, but it might also be confusing!
Luckily, you will discover how to financially recover after your home has been damaged by reading this post. Let’s dive in!
Making Insurance Claims
If your insured home damage is by a storm, fire, or other natural disasters, it’s time to make an insurance claim. This can be a stressful process because the strength of your claim will determine your compensation from the insurer.
First, take a photograph of the damaged part before making any repairs or replacements. Remember that insurance companies are in the business of collecting premiums and not paying claims; they’ll pay as little as possible. Thus, consider taking many pictures from different angles before any action. If you don’t have photographic evidence for something, for example, smoke damage on the ceilings is hard to photograph; ensure you note it when talking to your insurance adjuster.
Call your insurer immediately after documenting the damage and finding out what information they need from you. They’ll probably send someone out to inspect the property and give you a written estimate for repairs or replacement costs, but it’s always best to take your pictures and keep detailed records if something goes wrong with their estimate.
Consider Your Emergency Funds
One of the first things you’ll have to consider is your emergency fund and decide whether you should use it. If you don’t have an emergency fund and have no other way of paying for repairs, you might have no choice but to pay out-of-pocket. But if you do have an emergency fund and can afford the extra expense, then it might be a good idea to use a portion of that money for home repairs.
However, you may not have an emergency fund and an insurance package after major damage such as a fire; selling a house after a fire will always be the easiest solution to moving on. You will easily sell your house at a considerable price that will cater to relocation expenses and allow you to get a new house.
Secure A Personal Loan
A personal loan can be a convenient option after major damage. It is a considerably affordable option since personal loans are offered at lower interest rates. Typically, it is available to income earners with a good credit score and who can pay on time.
Lending companies also offer affordable interest rates and flexible payment options, making it easier for borrowers to pay back the loan without accumulating too much debt. All you need is an active bank account and proof of income to qualify for this type of loan. You should be able to get enough money within 24 hours if you’re approved and complete the process quickly.
Determine Financial Aid Options
Suppose you live in a federally declared disaster area. The Federal Emergency Management Agency may be able to help with emergency shelter and repairs or replacements of essential items such as clothing or appliances. FEMA does not pay for repairs to structures.
Also, you can apply for a Small Business Administration Disaster Loan for home and personal property losses not fully covered by insurance. This can include structural damage and contents such as furniture, appliances, electronics, and clothing.
Sell And Leaseback Your Damaged House
It is a common solution for people who suffer from damage to their homes. Basically, you sell your damaged home at a discounted price and then lease it back from the buyer at the market value rate until the repairs are complete. The buyer will be responsible for any costs associated with fixing up the house while you pay rent during that period so that it doesn’t cause too much disruption in your life.
This option is ideal if you don’t have an insurance plan, an emergency fund, or savings and are unwilling to dip into debts.
Search For Well-Wishers
After a disaster, you may be overwhelmed by the kindness of strangers. Some people have developed a career to help others during such strange situations. However, others exist to take advantage of people’s misfortunes for profit.
Regardless of your situation, though, you’re going to need help. This can come from a variety of places:
- Your family and friends – are an obvious source of support; these people know you best and want to see you succeed. But it’s up to you how much you lean on them — remember that they’re going through the same trauma as you are; they may be able to offer personal or financial support.
- Your community – Seek your immediate social circle community for help. If there were a disaster in your neighborhood, many other people would be in the same situation as you. You can start by looking online at sites like Facebook Groups or Meetup for local groups that offer help and guidance for people in your situation.
- Nonprofit organizations – There are countless nonprofit organizations dedicated to helping people after disasters, including the Red Cross, Salvation Army, and Habitat For Humanity.
Financially Recover After Your Home Damage Now!
A financial recovery shouldn’t stress you after your home damage; claim your insurance plan, consider emergency funds, search for well-wishers, and determine financial aid options. These are some available options that will offer you a substantial financial recovery. Now, recover financially after your home damage!