If your clients' employees are experiencing problems, be sure to remind them of any voluntary benefits you offer that might help them. (Photo: David Paul Morris/Bloomberg)
In the days and weeks following a disaster like Hurricane Florence, your clients and their employees may encounter legal and financial matters as they begin to recover and rebuild from its aftermath.
Help your clients support their employees and the challenges they're facing by sharing these five tips with them.
|1. Know your rights-–and your responsibilities-–regarding property damage.
After a disaster, you may have issues with your home and property ranging from determining who is responsible for cleaning up to knowing when to keep making rent or mortgage payments. State laws and individual insurance policies vary, so be sure to check with your homeowners or renters insurance company or local authorities to know what applies in your situation.
However, in general, you can assume if you're a homeowner that:
- You're responsible for clean-up and disposal.
- Your insurance company may be obligated to pay for clean-up and removal if fallen limbs or other debris cause damage to your home, fence or driveway.
- If debris came from your neighbor's yard, you're still obligated to pay for clean-up unless you can prove that your neighbor's negligence led to the damage. In general, your neighbor's policy covers his/her house and property, and your policy covers your house and property.
- If you lease and don't own the property, your landlord is most likely responsible for repairs but is not liable for any personal injury or property damage resulting from a natural disaster.
2. Watch for consumer scams.
Many times after a disaster, it's possible that price gouging, refinancing schemes or home repair scams will pop up. To help guard against these incidents, make sure you:
- Never pay any money without reviewing and signing a contract.
- Ask for references, proof of insurance and licensing as required by your city and/or state.
- Resist any pressure to make quick or uninformed financial decisions.
- Don't let anyone convince you to borrow more money than you know you can afford or make false statements on a loan application.
- Research all lenders, contractors, appraisers, etc. with the Attorney General's Office or Better Business Bureau.
3. Protect against identity theft.
If your home was severely damaged, your belongings misplaced or you were required to leave your residence, you may be at risk for identity theft. Consider placing a fraud alert on your credit report so creditors will follow specific procedures before opening new accounts in your name or making changes to existing accounts. To activate a fraud alert, call one of the three main nationwide reporting companies at the numbers listed below or use the link to submit it online.
Equifax: 800-525-6285 Experian: 888-EXPERIAN (397-3742) TransUnion: 800-680-7289
A fraud alert is a federal right for victims of identity theft, and there's no cost to you to activate one. It allows creditors to get your report information as long as they take steps to verify your identity.
To place an initial fraud alert, contact one of three credit bureaus and let them know you believe you're a victim of identity theft. Confirm that the bureau you speak to will share the alert with the other two (it's the law that they do) and know that the initial alert will be active for 90 days.
|4. Avoid a contractor dispute.
If your home or property was damaged, chances are you'll be working with one or several contractors. To help make sure things go smoothly:
- Make sure a contract is in place before work begins — and have it reviewed by an attorney beforehand.
- Ensure the contract itemizes all costs for labor as well as supplies, along with a defined timeline for completion.
- Choose a reputable contractor who can furnish references, licensing and proof of insurance.
Before choosing a contractor, you'll also want to watch for common red flags, including:
- Door-to-door solicitations.
- Estimates that are much lower than competitors.
- Contractors that require immediate decisions.
- Answering service only: no direct contact with contractor.
- Contractor not from your area.
- Entire payment required upfront.
- No insurance or references.
5. Manage insurance disputes smoothly.
You'll probably be working with a combination of insurance companies (home, auto, medical, etc.) to get your life back in order. Filing claims and getting reimbursed for lost or damaged items can be a lengthy and frustrating process. To help you work through it:
- If possible, review your policies so you are familiar with the terms, deductibles and provisions.
- Make sure you track the times and dates of all phone calls, who you talked to and the subject.
- Save all emails and documents you receive.
- Respond quickly to all written and electronic correspondence.
- Do your best to remain patient and informative.
If your clients' employees are experiencing problems, be sure to remind them of any voluntary benefits you offer that might help them, such as legal insurance, which can connect them with attorneys who can provide advice and representation.
Nothing can make the stress of recovering after a hurricane, flooding or natural disaster go away, but these tips will ensure that employees know their rights and don't add to their financial and legal stress.
Ann Cosimano ([email protected]) is ARAG's general counsel and directs the company's legal, regulatory, compliance and attorney relations departments.
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