Having a mortgage usually means you also have homeowners insurance, as most lenders require it to protect their investment (and yours!). While you might not give your policy much thought, especially if you’ve never had to file a claim, it’s good to know it’s there in case of a disaster. But remember, insurance companies don’t just hand out money when things go wrong. It’s crucial to understand what to expect when it’s time to file a claim.
Homeowners insurance claims can be filed for various reasons, including physical damage from storms or fires, losses from theft or burglary, or injuries that occur on your property. The specifics of the claims process depend on the nature of the incident and the policies of your insurance company. Here’s a step-by-step guide to help you navigate the process:
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File a Police Report (if applicable): If you’re a victim of a crime like vandalism, arson, burglary, or theft, file a police report as soon as you become aware of it. You can do this by calling your local police department’s nonemergency number or reporting it online. Only call 911 if the crime is still happening or if there’s an immediate threat to your safety. You’ll need to provide official identification and might have to visit the police station in person. A police officer or detective will likely need to document the damage at your home, so make sure to get their name and badge number for future reference. Don’t clean up until they say it’s okay, and be patient if it takes a few days for them to get to you. If your home was damaged in a natural disaster, you don’t need to file a police report.
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Contact the Insurance Company: Reach out to your insurance company or agent to start the claims process. Many companies allow you to file simple claims online, but for more complex or high-value claims, you’ll likely work with a claims representative or your agent. During your initial conversation, ask about the likelihood of your claim being covered, get a rough estimate of the claim value, find out the deadline for filing the claim, and ask what they need from you to process the claim.
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Document the Damage: If you filed a police report, see if you can use the photos and notes taken by the police. If not, take as many photos as possible of the damage, make a detailed inventory of damaged or missing items, and write a summary of what happened. Don’t clean up or make any repairs until an insurance company representative has seen the damage, or they might underestimate your payout.
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Make Temporary Repairs Only if Absolutely Necessary: If your property is unsafe due to structural damage or if not repairing the damage would make it worse, make temporary repairs after documenting the damage. Keep all invoices and receipts associated with these repairs, as you may be able to include them in your claim.
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Submit the Claim: Fill out a proof-of-loss form and provide details about what caused the loss, the parts of your home that were damaged, an inventory of damaged or stolen personal property, the estimated value of the loss or damage, any police reports, photos or videos of the damage, and receipts for costs incurred before the company approved your claim.
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Prepare for the Insurance Adjuster Visit: Most claims require a site visit by an insurance adjuster, who will confirm the damage, determine its extent, estimate its value, and confirm it’s covered by your policy. Before the adjuster arrives, write down your account of what happened, organize your photos and videos of the damage, make notes of specific damaged items or parts of the home you want the adjuster to see, and write down any questions you have about the process.
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Get Repair Estimates: Once the adjuster confirms the damage is covered and gives you an estimate of its value, get repair estimates from local contractors. Get at least three quotes for each repair job and make sure the total value of all repair estimates is below the estimated settlement amount your adjuster gave you.
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Track the Claim & Follow Up: Use your insurance company’s online claim tracking tool to monitor the progress of your claim. Follow up with the claims department if you don’t see any progress on your claim for several weeks. Respond promptly if the insurance company contacts you for more information.
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Review the Settlement Offer: If your claim is approved, your insurance company will present you with a settlement offer. If you think the offer is fair, accept it. If not, you can contest it. If the insurer continues to lowball your settlement offer, you can hire a public adjuster to negotiate on your behalf.
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Receive the Payout & Make Repairs: Once you’ve accepted the settlement offer, find out how the insurance company plans to pay it. For simple claims, they’ll likely send you a check or execute an electronic transfer for the full balance of the payout. For larger or more complicated claims, you won’t receive a lump sum for the full payout.
If your claim is denied, review your claim and insurance policy to see if you missed an exclusion that rules out the type of claim you made. If your policy covers the issue that prompted the claim, the insurer might have denied it because you didn’t provide clear evidence of damage or loss.
The time it takes to process a home insurance claim depends on the complexity of the claim. Many states require home insurance companies to approve or deny claims within a certain period, often 30 to 60 days. Simple claims can take just a few days to approve.
Filing a home insurance claim can raise your premiums, and depending on the type of claim, your insurer might even choose not to renew coverage. However, filing a claim is often the best way to reduce the financial burden of damage or losses.
