Home or car damaged in Arizona storms? What to know before seeking a payout

For Arizona residents whose homes and cars were damaged by hail, high winds and tornadoes, the storms may be over, but another challenge is just beginning: navigating insurance claims.

Knowing what your policy covers, documenting the damage and understanding what to expect from your insurer can help, according to Maria Ailor, assistant director of the consumer division at the Arizona Department of Insurance and Financial Institutions.

Ailor told KTAR News 92.3 FM’s Arizona’s Morning News on Monday that severe hail damage can leave vehicles totaled, raising questions about how much policyholders will receive.

“There’s different ways that insurance companies can calculate the actual cash value of that vehicle,” Ailor said.

How long does an insurer have to respond to a claim?

While insurance payouts can take time, insurers must acknowledge a claim within 10 days, Ailor said.

“They have 10 days to acknowledge the receipt of the claim and provide the necessary forms and documentation necessary to gather the information,” she said.

That deadline applies to acknowledging the claim and providing paperwork — not issuing a payout. Insurers should also provide updates as they investigate the damage and work toward a decision.

The time needed to process a claim can depend on the type and severity of the damage, along with the policyholder’s cooperation. Residents should also review their coverage and policy limitations so they understand what may be covered.

Arizona law requires insurers to conduct a reasonable investigation using all available information, Ailor said. But the meaning of “reasonable” leaves room for interpretation.

“Reasonable is not defined in our laws,” Ailor explained. “It’s important for consumers to know that [insurers] cannot take long periods of time — shouldn’t be taking long periods of time — but they do need to gather the evidence necessary.”

Document storm damage before speaking with an adjuster

Keeping a record of the damage can help residents prepare for a conversation with their insurance adjuster, Ailor said, adding that insurers must investigate the claim.

This can involve sending an adjuster to inspect the damage or asking you to take your vehicle to a preferred repair shop or one of your choosing.

“It’s also important to document the damage by taking photographs,” Ailor said.

Keep those photos and a record of the storm damage ready to share with the adjuster assigned to your claim.

Powerful storms leave damage across Arizona

The need for insurance claims follows a series of powerful storms that swept through Arizona last week. A supercell thunderstorm brought strong winds, hail and rain to metro Phoenix on Tuesday and Wednesday.

Two confirmed tornadoes added to the destruction Wednesday, including one that tore through Heber-Overgaard, damaging buildings, destroying RVs and leaving a man homeless. One person suffered a non-life-threatening injury.

Winds reached 105 mph, snapping and uprooting ponderosa pine trees. Both tornadoes were rated EF1, toward the lower end of the EF0-to-EF5 scale used to classify tornado intensity.

Between Wednesday morning and Thursday night, National Weather Service offices in Flagstaff and Tucson issued a total of 16 tornado warnings.

Related

Katie Hobbs faces pushback after not declaring state of emergency for Heber-Overgaard tornadoNWS confirms multiple tornadoes touched down in northern Arizona, including 1 near PrescottLight rain pops up in portions of the Valley as temperatures begin to drop4 people rescued from top of car after getting caught in flood in Yavapai County‘Amen,’ then a roar: Arizona church takes shelter amid tornado warningFamilies rescued from flooded Navajo Nation homes as Phoenix sees light rain