8 Tips for Filing a Homeowners Insurance Claim
Updated: July 26, 2024
Advertising & Editorial Disclosure
When filing a home insurance claim, having the right tips, like reviewing your policy and thoroughly documenting damages, can make all the difference. These strategies can help streamline the process and ensure you receive fair compensation from your insurer.
Before filing a homeowners insurance claim, it's wise to be well-prepared with a few key tips. These strategies can help streamline the process and ensure you get the most out of your policy.
Here are some tips to consider before filing a home insurance claim:
One of the tips for filing a homeowners insurance claim involves reviewing your policy to understand what is covered and what isn't. This knowledge can prevent unpleasant surprises when you file a claim. Here are some home insurance coverages to keep an eye on:
Dwelling Coverage
Review the limits on dwelling coverage to ensure your home is insured for its full replacement cost, which helps avoid out-of-pocket expenses if rebuilding is necessary.
Personal Property Coverage
Understand the limits and exclusions on personal property coverage, as this will determine how much reimbursement you'll receive for damaged or stolen items.
Liability Protection
Check the extent of your personal liability coverage to see how much coverage you have if someone gets injured on your property, which can safeguard you from significant legal expenses.
Additional Living Expenses (ALE)
Examine your ALE or loss of use coverage to determine how much support you'll get if you need to live elsewhere temporarily while your home is undergoing repairs. This will ensure you can maintain your standard of living.
Exclusions
Pay close attention to the exclusions section to identify any specific events or items that aren't covered by your policy. This will allow you to plan for additional protection if needed.
To document damages effectively, take clear and detailed photos and videos of all affected areas. This visual evidence will support your claim and ensure you receive the appropriate compensation. Here are some documentation ideas to ensure proper documentation:
Be thorough in capturing every angle and aspect of the damage to provide a comprehensive overview for your insurer.
Keeping receipts and records of valuable items will help substantiate your insurance claims. These documents provide proof of ownership and value, which can significantly expedite the claims process. Ensure you store these records in a safe place, such as a digital cloud service, where they can be easily accessed when necessary. A well-documented inventory can make a big difference in your final reimbursement.
Here’s a step-by-step guide on how to gather receipts and records as you go:
Start by creating a comprehensive list of all valuable items in your home, including electronics, jewelry, appliances and furniture. Use a spreadsheet or a home inventory app to organize this information.
For each item, note down the purchase date, price and place of purchase. This information will help establish the value of the items.
Document each item with photos and videos, capturing serial numbers and other identifying details. This visual evidence supports your written records.
Keep digital copies of all receipts and appraisals, ideally in a cloud-based storage system. This ensures that your records are safe from physical damage and accessible from anywhere.
Periodically update your inventory to include new purchases and remove items you no longer have. This keeps your records accurate and up-to-date.
Creating and maintaining a home inventory is best done as you live in your home rather than waiting until after a claim. This ongoing process ensures proper documentation of new items and that your inventory remains current. By consistently updating your records, you can avoid the stress and potential oversights that can occur when trying to recall and document everything after a loss.
After discovering damage to your home, it's a good idea to take immediate steps to mitigate further harm through temporary repairs. Actions such as covering broken windows, tarping a damaged roof or shutting off water to a burst pipe can prevent additional destruction. While these repairs are not a permanent solution, they help protect your property and support your insurance claim by demonstrating that you took responsible measures to minimize loss.
Knowing what to do after filing a homeowners insurance claim can make the process smoother and more successful. For instance, regularly following up on the status of your claim and getting repair estimates from licensed contractors can ensure you receive fair compensation.
Maintaining a detailed record of all communications with your insurer is a key tip for filing a homeowners insurance claim. Documenting every phone call, email and letter ensures you have an accurate account of what was discussed and agreed upon. Some ways to keep things clear include:
This meticulous approach helps prevent discrepancies and provides a solid foundation if any disputes arise during the claims process.
Staying proactive by checking in with your insurer shows you are engaged and serious about resolving the claim quickly. Frequent follow-ups can help identify any missing information or documents needed to move the process forward. This persistence can ultimately lead to a faster resolution and ensures that your claim receives the attention it deserves.
Obtaining repair estimates from licensed contractors is vital for filing a homeowners insurance claim. These estimates provide a clear picture of the repair costs and help support your claim with accurate financial data.
Working with licensed contractors ensures that the repairs are assessed by qualified professionals who can offer reliable quotes. This information can also be used to negotiate a fair settlement with your insurer.
Look for licensed contractors in your area by checking online reviews, requesting recommendations and verifying credentials with local licensing boards. Ensuring they are reputable and qualified is essential for getting accurate and reliable estimates.
Contact at least three contractors to provide written estimates for the required repairs. This will give you a range of options and help you compare costs and services.
Arrange for the contractors to visit your property and assess the damage in person. A thorough inspection allows for a more precise estimate.
Ensure each estimate includes a detailed breakdown of labor, materials and additional costs. This transparency helps you understand what you are paying for and supports your negotiations with the insurer.
Choose the estimate that offers the best balance of cost, quality and reliability. Share this information with your insurance adjuster to support your claim and move forward with repairs.
When you receive a settlement offer from your homeowners insurance company, remember that you are not obligated to accept it right away. Thoroughly review the offer to ensure it adequately covers the cost of repairs and losses. If the initial offer seems insufficient, you can negotiate for a fairer amount. Evaluating and possibly contesting the first offer can result in a better settlement that fully addresses your needs.
Here are some situations where it’s likely best to start negotiating:
Offer Doesn't Cover Repair Costs
If the proposed settlement is significantly lower than the repair estimates provided by licensed contractors, consider negotiating for a higher amount.
Insufficient Coverage for Personal Property
If the offer doesn’t fully reimburse the value of your damaged or lost personal items, it's worth seeking a better settlement.
Discrepancies in Damage Assessment
If you believe the insurance adjuster underestimated the extent of the damage, provide additional evidence and request a reassessment.
Lack of Coverage for Additional Living Expenses
If the offer doesn’t adequately cover living expenses while your home is undergoing repairs, you should consider negotiating for more.
Unexpected Exclusions or Deductions
If the settlement includes unexpected exclusions or deductions you believe are unwarranted, address these concerns with your insurer to seek a fair resolution.
Filing a homeowners insurance claim can be complex and often stressful. To help you navigate it effectively, we've compiled a list of frequently asked questions that cover essential strategies.
Reviewing your policy helps you understand what is covered and excluded, preventing surprises during the claim process. This knowledge ensures you are aware of your rights and the extent of your coverage.
Maintaining detailed records ensures you have an accurate account of all interactions, which can help resolve disputes and keep your claim on track. Clarify information and request written confirmations to avoid misunderstandings.
If the offer doesn’t adequately cover repair costs, personal property losses or additional living expenses, you can negotiate for a better settlement. Also, if there are discrepancies in damage assessment or unexpected exclusions, contesting the offer is likely worth it.
To support your case, provide additional evidence, such as photos, videos and repair estimates from licensed contractors. Request a reassessment and negotiate with your insurer to reach a fair settlement.
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.
