Advocate for a more balanced approach
that values both structure and contents
By Steve Gibson
In recent months, several significant natural disasters, notably hurricanes and wildfires, have impacted various regions of the United States. For instance, Hurricane Helene, a Category 4 storm, consecutively with Milton, a Category 5, made landfall in Florida in September, causing extensive damage. High winds, flooding, and storm surge affected communities in Florida, Georgia, Tennessee, North Carolina, and South Carolina. Additionally, numerous wildfires have occurred across states like California and Oregon, fueled by dry conditions and strong winds.
In the aftermath of disasters like these, homeowners who manage to protect their lives often find themselves grappling not only with property damage, but also with the emotional weight of losing treasured personal belongings. While insurance companies usually focus on structural repairs, which are essential, it is equally important to recognize the value of a home’s contents—those items that hold sentimental significance and play a vital role in restoring a sense of normalcy.
As professionals in the insurance restoration process, it is important to recognize this gap and advocate for a more balanced approach that values both structure and contents.
Rethinking the restoration process in insurance
Traditionally, when homeowners experience a loss—whether from water damage, mold, or another disaster—the insurance industry follows a standard protocol called the First Notice of Loss (FNOL). This process begins when the homeowner reports the damage, prompting insurance companies to call in mitigation services to address the issue as quickly as possible.
These mitigation companies, whether major industry players or local providers, are dispatched to stabilize the situation and prevent further damage. Their focus is on protecting the structure of the home, drying out affected areas, and ensuring that the property can be salvaged.
This approach can overlook a critical element of the restoration process: the homeowner’s personal belongings.
While mitigation companies work to protect the house itself—the most valuable insured asset—items such as family heirlooms, photo albums, and other sentimental objects may be inadvertently neglected. This can lead to significant emotional distress for homeowners, as the loss of these personal items often outweighs any excitement over structural repairs like new flooring or cabinets. The sense of losing irreplaceable memories can often overshadow the tangible benefits of home restoration, leaving homeowners feeling disappointed, even after the physical structure of their home is restored.
The key to improving the overall experience for homeowners lies in rethinking how personal items are handled during the restoration process. In recent years, advances in technology have opened new possibilities for a more thorough and thoughtful approach to restoration.
My firm, for example, uses sophisticated scanning tools to document a homeowner’s belongings and the layout of affected areas before any work begins. This technology allows for a more precise understanding of the damage and enables both mitigation and insurance teams to take a more targeted approach to protect and restore not only the structure but also the personal belongings inside.
By scanning a room with tools that capture detailed measurements and data, experts can generate a digital replica of the affected area. This technology provides a comprehensive overview, helping mitigation and insurance teams know exactly what needs to be repaired or discarded and, more important, what items need to be safeguarded.
When personal belongings are flagged for protection early in the process, there is a better chance of preserving them, mitigating the emotional impact on homeowners. Timeliness is key and by the time a contents company is called in, it may be too late.
The sense of losing irreplaceable memories
can often overshadow the tangible benefits of home restoration,
leaving homeowners feeling disappointed, even after the physical
structure of their home is restored.
Collaboration and the agent’s vital role
The shift toward prioritizing personal items alongside structural concerns requires more collaboration between mitigation professionals, insurance carriers, and homeowners. Instead of focusing solely on the home’s structure, a more holistic approach can be taken—one that addresses both the financial and emotional aspects of the loss. Personal belongings often carry more meaning for homeowners than structural repairs, making the restoration process more compassionate and effective.
Insurance agents play a crucial role in advocating for a more comprehensive approach to restoration. By advocating for the early involvement of content restoration professionals, adjusters can ensure that personal items are carefully documented, assessed, and prioritized alongside structural repairs. This type of proactive approach ensures that essentials—such as clothing for work, school, or sports—are quickly returned to homeowners, helping them maintain a sense of normalcy even during a disruption.
Not only will that refocus improve the customer experience by addressing homeowners’ emotional needs but can also reduce overall claim costs for insurance companies. Salvaging personal items earlier in the process can minimize high-severity replacement claims, benefiting both the homeowner and the insurer.
Timely intervention equals savings
Timely intervention in recovering personal items can result in significant savings. Acting quickly prevents possessions from becoming unsalvageable and avoids costly replacements.
Restoration efforts usually cost a fraction of what replacing items would. For example, if a homeowner’s set of china is valued at $1,000, an insurance carrier might only offer $500 due to depreciation. This gap can lead to dissatisfaction when expectations differ from actual payouts. Early salvage efforts help avoid these kinds of frustrations, can preserve what matters most, and ensure a smoother claims process.
Quick response is also crucial. In the restoration industry, being on-site within 24 hours is standard, with many aiming for an even faster response—ideally within an hour of receiving the assignment. Depending on carrier expectations, teams often arrive on-site within four to eight hours and begin scoping the situation. Mitigation actions, like water extraction or content removal, typically begin within 24 hours. While the process may seem disruptive, early intervention is key to minimizing loss and expediting recovery.
Trust and transparency in the claims process
Trust and transparency are vital when handling a homeowner’s personal belongings. Policyholders should be advised to document losses—taking pictures of affected areas and securing valuables like jewelry and firearms. It’s important for homeowners to manage these high-value items personally to prevent misunderstandings and potential accusations of missing items, which stems from a lack of documentation.
Before the mitigation team arrives, it’s crucial for homeowners to understand their policy limits and the process ahead. Life will be disrupted, and personal belongings will be removed by a trusted vendor, which can create unease. Even if some rooms were unaffected, there may still be items that need to be relocated for storage or cleaning. Insurance carriers may instruct vendors as to what can be taken off-site, so understanding this disruption is essential.
Maintaining open lines of communication with policyholders is key in building trust. Adjusters should clearly explain the documentation process and emphasize the importance of securing valuables. By providing transparency about what to expect and encouraging clients to understand their coverage limits, adjusters can alleviate anxiety and foster trust throughout the process.
In Portland, Oregon, one innovative insurer has established this model of collaboration and prioritizing home contents first, which is paying off in a big way. The approach has fostered a close working relationship between adjusters, mitigation companies, and restoration specialists, resulting in a more positive customer experience and improved outcomes for homeowners.
Transforming the FNOL process to prioritize home contents alongside structural repairs is not just a shift in protocol; it’s a necessary evolution in the insurance industry that helps manage and reduce the severity of the claim, waste in landfills, and the impact of loss on homeowners. By leveraging technology to document and safeguard personal belongings from the outset, insurers can help preserve irreplaceable memories and provide peace of mind during hard times.
The author
Steve Gibson is the president of CRDN (crdn.com), a provider of textile, electronics, and art restoration services for insurance claims. He has over two decades of experience in the restoration industry and is passionate about transforming the claims process to better serve home owners and insurers alike.
