How to prove what was done to your house after a fire or flood
After a fire, flood or storm, people will ask about the house as it was. Your insurer wants to know what it had. If you claim a loss on your taxes, the IRS wants to know what you paid for it and what you added. If the papers burned with the house, you can still rebuild most of that history.
This page covers what you need to show, where to find it again, and how to keep it safe next time.
Why the house's history matters
Two numbers come up after a disaster. Both depend on the history of the house, not just its address.
- What the house had. A new roof, a finished basement, an upgraded electrical panel or a remodeled kitchen are part of the house. If your insurer doesn't know about them, they can't count them. Ask your insurer or agent what they need for your policy.
- What you put into it. The IRS calls this your basis: generally what you paid for the home, plus the cost of improvements. The IRS says to "add the cost of additions and improvements to the basis of your property" (IRS Publication 523). Basis also matters when you sell.
A casualty loss on your taxes is generally figured from your adjusted basis or the drop in the home's value, whichever is smaller, minus any insurance payment (IRS Publication 547). The rules on who can deduct a loss are narrow and they change. Ask a tax professional before you count on one.
What to gather
Start with the work that cost the most. Those jobs change the numbers the most.
| What happened | What proves it |
|---|---|
| You bought the house | The closing statement, deed and purchase contract |
| A roof, siding or windows were replaced | The contractor's invoice, the warranty, a permit |
| A room was added or finished | Permits, plans, the contractor's invoice, loan papers |
| Heating, cooling or the water heater was replaced | The invoice, the model and serial number, the warranty |
| Electrical or plumbing was upgraded | The electrician's or plumber's invoice, a permit |
| The kitchen or a bath was remodeled | Invoices, card statements, before and after photos |
For each job, try to show three things: what was done, when, and what it cost. A name of who did the work makes the rest easier to confirm.
Where to find records you've lost
The IRS has a page on this: Reconstructing records after a natural disaster or casualty loss. These are the places it and other sources point to:
- The title company, escrow company or your bank. They can send copies of your purchase papers.
- Your mortgage company. Ask for the appraisal from when you bought or refinanced.
- Your insurance policy. It usually lists a value for the building. Your agent can send a copy.
- The contractors. Most keep job records for years and will resend an invoice or write a statement of the work and its cost.
- The building or permit office. Permits show what was done and when.
- The county assessor. Your property tax statement and older records about the house.
- Your email and bank statements. Search for the names of trades and stores. Card statements give you a date and an amount, even when the receipt is gone.
- Photos. Phone photos from holidays and parties often show a room before the damage. Your phone or cloud account may have them even if the phone is gone.
- People who knew the house. The IRS page mentions written statements from people who saw the home before and after.
- Home improvement loan papers, if you borrowed for the work.
Keep it safe next time
The records that help most are the ones written down as the work happens, and kept somewhere other than the house. A folder in a drawer burns with the drawer. A copy online, or with a relative, doesn't. See how to keep your home's records safe from a fire or flood.