Home Disaster – A Few Pieces of Advice to Plan for the Worst

No one ever wants to imagine losing their home in a disaster, whether it’s a natural event like a tornado or wildfire or an accident such as a home fire. Unfortunately, these events can and do happen as happening currently in California or the Marshall Fire 3 years ago.   Here are a few helpful tips that may assist you in the event your home is ever damaged.

This topic hits close to home for us, as some local past clients of Capital Construction—now dear friends—lost the majority of their home and belongings to a fire this fall.   We are currently in the process of rebuilding their home and hope to have them back in it by late 2025. Over the years, we’ve worked on numerous insurance claims and want to stress the importance of the following tips for every homeowner.    Even though our current clients were quite prepared having been on notice for potential wildfire evacuations, they have stated that it is a full-time job handing all the details in terms of the content loss as well as reconstruction process and could not imagine where there would be without having been as prepared.   The following tips are a combination of from our experiences and well as our clients’ personal perspective.


Insurance Policy

  • Are you insured properly?  Almost all homes impacted by the Marshall Fire in Boulder County three years ago were underinsured, forcing homeowners to pay out of pocket to complete renovations.   When it comes to major damage, your maximum policy value could become important.  Many claims are for smaller amounts for broken pipes, etc. but for fire and tornados it is very important.  
  • Annual Review: Have an annual review of your homeowner’s insurance policy to ensure you are 100% covered in the event of a fire or disaster. Work with a trusted agent who understands your local market and area. Many quick, online insurance companies may not provide the coverage you need. 
  • Understand Your Coverage: Some agents calculate coverage by subtracting the land or lot value from your home’s total value to determine the maximum policy amount for rebuilding.   This method often fails to account for expensive demolition costs, leaving homeowners underinsured.
  • Increased Dwelling Coverage: Consider policies with options for “Increased Dwelling Coverage” to protect against rising construction costs. Discuss this with your agent.
  • Replacement Costs vs. Depreciation: Ensure your policy covers current “replacement costs,” not just the depreciated value of your home and belongings. For instance, if your roof is 15 years old (with a 30-year lifespan), your policy should still provide funds to fully replace it. 
  • Thorough Claim Reviews: Do not accept the first claim form from your insurance company without review. Initial claims often miss critical items, and further evaluation may be required to maximize your payout.  

Pictures and Videos

  • Annual Updates: Take updated photos and videos of your home and contents every year.
    • Capture every wall, surface, floor, closet, etc. in your home.
    • These records are invaluable for insurance claims, rebuild planning, and design reference.
    • If you do not have photos or access to them, as soon as you allowed by fire department, prior to any demolition on home, go in and take as many pictures as possible.
  • Proof of Upgrades: Photos and videos can document upgrades, such as custom shelving or specific flooring types, for your insurance provider.   If you remodel your home, add an addition or finish your basement make sure to update your coverages with your insurance.  
  • Video Walkthroughs: A video walkthrough of your home can be particularly helpful in demonstrating the full scope of your belongings and property condition.

Keep Receipts and Records

  • Save receipts and details for any work done on your home, including appliances, paint colors, or custom features. These records can simplify the insurance and rebuild process. 
  • In the event of a disaster, As you are able, make a list of possessions room by room as you remember them to assist in the claim process.   Keep a notebook handy at all time to keep notes of conversations with insurance company, fire department, contractors, and such.    Get a box and keep all your receipts in one location until you have time to go through and organize.

Secure Important Documents

  • Construction Plans: If you have the original plans for your home, store them in a safe place. If your home was recently built, ask your contractor for copies of the plans and engineering documents. These can save time and money in the reconstruction process.
  • Inventory of Valuables: Create and maintain a detailed inventory of artwork, collectibles, or other high-value items, complete with photos.

Hire Licensed and Insured Contractors

  • Always hire licensed and insured professionals to work on your home. Hiring unlicensed “side workers” on sites like Nextdoor or Facebook may seem cost-effective but can leave you liable for damages or injuries.
    • For example, if an uninsured worker causes damage or is injured on your property, you could be held financially responsible.
  • This principle applies even to seemingly simple tasks, such as hiring movers for furniture.  Avoid “hiring a few strong men” to help move your piano for $25. 

You Have the Right to Choose Your Contractor

  • Emergency Response Teams: After a disaster, emergency response teams dispatched by the fire department or insurance company often handle initial demolition and content removal. These companies may present contracts for reconstruction services.  Ensure you receive copies of all paperwork you sign.
  • You Choose Your Builder: Colorado law allows you to choose your contractor for reconstruction.  Do NOT feel pressured to use the same company that handled the emergency work, no matter what that company may say.  Instead, find a contractor who:
    • Offers quality construction services and open minded to making suggestions on where and how you can save money on the rebuild, if necessary. 
    • Allows you to make changes or upgrades during reconstruction (at your expense usually).
    • Provides peace of mind during this challenging time with open communication, detailed processes and procedures.

Final Thoughts

No one wants to prepare for the worst, but these proactive steps can help protect your home and family. Whether it’s reviewing your insurance policy, documenting your property, or working with licensed professionals, preparation can make all the difference in recovering from a disaster.

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    Northern Colorado contractor specializing in basement finishes, remodels, and additions.
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