Updated: November 1, 2024
Advertising & Editorial Disclosure
Navigating the homeowners insurance claims process involves documenting damage, reviewing policy specifics, submitting claims and managing repairs. Understanding how a home insurance claim works, from initial damage assessment to potential dispute resolution, ensures you’ll be well-equipped to handle claims efficiently and effectively.
Thorough documentation of property damage through photos and videos is essential for accurately filing insurance claims and supporting cases in disputes.
Before initiating a claim, make sure you understand the specifics of your insurance policy, including what damages are covered and any exclusions.
Accurately detailing the incident on the claim form, including the date, type of damage and estimated losses, helps streamline the claim processing.
Thoroughly assessing and documenting the damage to your property helps in filing a comprehensive home insurance claim and provides a baseline for any disputes that may arise later with the insurance company. Be systematic and detailed in this documentation to ensure all damages are accounted for.
Here are some specific types of photos, videos and documents you should focus on capturing:
Photographs and Videos of the Entire Area
Take wide-angle photos to capture the overall context of the damage, as well as close-up shots to detail specific damages. A video walkthrough can also help give adjusters a better understanding of the damage flow and spatial arrangement, which is sometimes lost in photos.
Before and After Shots
If available, include pictures of the property before the damage to highlight the extent of the damage.
Structural Damage
Focus on structural elements like walls, roofs, and foundations. Note any visible signs of stress or failure.
Content Damage
Include photos of damaged personal property, such as furniture, electronics and personal items.
Receipts and Documentation of Property
Gather receipts, warranty documents and any other paperwork that proves ownership and value of the damaged items.
Repair and Maintenance Records
If recent repairs were done, include documentation and receipts to show the condition before the event. This might affect your home insurance claim’s assessment regarding what damages were directly caused by the incident versus pre-existing issues.
Before initiating a claim with your insurance company, reviewing your homeowners insurance policy is a good idea to help clarify the scope of your coverage, the procedures you must follow and your financial responsibilities, such as deductibles and coverage limits. Understanding these details upfront can significantly influence how you report the damage and interact with the adjuster, and it can also help set realistic expectations for what compensation might be available to you.
Here are key elements to focus on when reviewing your insurance policy:
Coverage Types
Identify what types of damage or loss are covered under your policy. Common coverage areas include structural damage, personal property and liability protection.
Exclusions
Pay special attention to what is not covered. Policies typically exclude certain types of damage, such as from earthquakes or floods, unless specific additional coverage is purchased.
Deductibles
Know the amount you need to pay out-of-pocket before your insurance kicks in. This can vary by type of damage or claim.
Coverage Limits
Understand the maximum amount your insurer will pay for different types of claims. This might be split into overall property damage, personal items and additional living expenses if you must live elsewhere during repairs.
Replacement Cost vs. Actual Cash Value
Determine if your policy reimburses the replacement cost (buying a new item to replace the lost one) or the actual cash value (what the item is currently worth, taking depreciation into account).
Claim Procedures
Look at the steps required by your policy for filing a claim, including timelines for reporting damage and documentation requirements.
Discounts and Increases
Understand any conditions that might affect your premiums, such as discounts for security systems or penalties for multiple claims.
Filing a homeowners insurance claim involves submitting detailed information about the incident and the resulting damage to ensure the smooth processing of your claim. When you fill out a claim form, the more precise and thorough you are with your information, the more efficiently your insurer can evaluate and respond to your claim. Most companies offer multiple ways to file claims, such as by phone, online or mobile app.
Here are the key details you’ll typically need to provide:
After you file your claim, an insurance adjuster will be assigned to your case. The adjuster will thoroughly review all the damage, your coverage details and the supporting documentation you provided. This review often includes a visit to your home, where the adjuster can inspect the damage firsthand.
The adjuster's main task is to determine the extent of the insurance company's liability by assessing the scope of the damage. They will measure this against what your policy covers to come up with an estimate for repairs or replacement. The adjuster will also check for any discrepancies between your report and the actual situation, verify the cause of the damage to ensure it aligns with a covered event and review any receipts or documentation for possessions and repairs.
One of the key tips when filing a home insurance claim is to maintain open lines of communication with your adjuster. Be present during their inspection if possible, as this gives you the opportunity to point out all damage areas and discuss your concerns directly. Ensuring that the adjuster has all the necessary information can help streamline your claim, making the process more efficient and potentially faster.
The adjuster will provide an estimate of the repair costs based on their assessment of the damage and the terms of your insurance policy.
Once you have this estimate, you can proceed with the repairs. Depending on your insurance policy, there may be specific guidelines on how to proceed. Some policies require you to use contractors from a pre-approved list provided by the insurance company. These contractors are often vetted for quality and reliability, which can provide some assurance of good workmanship.
However, if your policy allows, you may also choose your own contractors. This can give you more control over the selection process and potentially lead to better satisfaction with the repairs, assuming you choose skilled and reputable professionals.
If your homeowners insurance company is stalling, document every interaction, including dates, names, and details of conversations. Regularly follow up to keep pressure on the company, as consistent communication can often speed up the process. If the delays persist, file a formal complaint with your state's insurance department or consider seeking legal advice.
Once the insurance adjuster has assessed the damage and provided an estimate, the next step is to hire contractors to complete the repairs on your home. Choose contractors who are not only reputable but also ideally experienced with insurance repair work, as they will be familiar with the requirements and processes involved. As the repairs proceed, maintaining detailed records is crucial.
Key points to consider during this phase include:
Ensure they are licensed, insured and have good reviews or recommendations.
Compare costs and scope of work from several contractors to make an informed decision.
This should outline the scope of work, timelines, costs and payment terms.
Stay involved in the process to ensure work is completed to a high standard.
Save all receipts, contracts and correspondence related to the repairs for future reference.
Consider having the work inspected by a third-party to ensure it meets building standards and your expectations before making final payments.
Once all repairs are completed and the associated costs are submitted, your insurance company will review the final documents and issue a payment. How home insurance is paid can vary based on the insurer's policies and the specific arrangements you have made.
Some insurers might pay the contractors directly, particularly if they were part of a pre-approved network, ensuring that work is compensated according to the agreement. Alternatively, the payment might be made to the homeowner, allowing you to manage the distribution of funds to the contractors. Sometimes, payments are divided between the contractor and the homeowner through a home insurance claim check, especially if you have incurred out-of-pocket expenses or have managed part of the repair process independently.
Taxes are normally not due on homeowners insurance reimbursements. Instead of being considered taxable income, these payouts are viewed as reparations for losses or damages.
If you disagree with the insurance adjuster's findings or the settlement offered, you can dispute the claim. This might involve submitting additional documentation, hiring a public adjuster for a second opinion or entering into mediation or arbitration.
About Mark Fitzpatrick
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.
