How Does Filing a Homeowners Insurance Claim Work?

Updated: August 9, 2024

Filing a homeowners insurance claim involves reporting the incident to your insurance provider, documenting the damage and working with an adjuster to assess the costs for repairs or replacements. After submitting the necessary proof and forms, your insurer will review the claim to determine compensation. Understanding how to file a homeowners insurance claim ensures that you receive the appropriate funds to cover losses as specified under your policy, helping to alleviate financial stress in the wake of unexpected events.

Table of Contents

Key Takeaways

Filing a homeowners insurance claim should be done promptly to ensure efficient processing and financial aid.

Evaluate the cost of damages against your deductible; minor incidents might not be worth filing a claim if repairs won't exceed your deductible.

Understand the terms of your insurance payout, whether it's actual cash value or replacement cost, to manage expectations.

How to File a Homeowners Insurance Claim

The insurance claim process starts by notifying your provider and documenting the incident. Once you have evidence in hand, you can file a claim and work with the insurer’s adjuster. Filing an insurance claim should be done as soon as you notice the incident to ensure a smooth and efficient resolution. Here is a detailed step-by-step guide on how to file a homeowners insurance claim:

1
Contact Your Insurance Company

Immediately after the incident, call your insurance provider to report the claim. Provide your policy number and the details of what happened. The quicker you initiate this step, the sooner the resolution process can start.

2
Document the Damage

Take comprehensive photos and videos of all the damage caused by the incident. This visual evidence should be detailed, including different angles and close-ups to accurately display the extent of the damage.

3
Review Your Insurance Policy

Understand what your policy covers and the deductibles you may need to pay. This will prepare you for discussions with your insurance adjuster and help manage your expectations regarding what expenses will be covered.

4
Complete a Claims Form

Fill out the claims form provided by your insurer. Be as detailed as possible, supplying all the necessary information to process your claim efficiently. You can include police reports if available and other important papers to support your claim.

5
Schedule an Adjuster's Visit

Your insurance company will assign an adjuster to come out and assess the damage. This professional will review the damage, estimate repair costs and provide a report to your insurer that influences your claim’s outcome.

6
Submit Quotes for Repairs

Gather quotes from licensed contractors detailing the cost of repairs. These should be submitted to your insurance company to help determine the insurance claim settlement.

7
Keep Records and Receipts

Keep all correspondence with your insurance company and any receipts related to temporary repairs, living expenses and other costs incurred due to the damage. For instance, if you are displaced due to a fire damaging your entire home, keep receipts of your hotel bills, meals and transportation to claim under your loss of use coverage or additional living expenses.

8
Receive Claim Resolution

After reviewing all documentation and the adjuster’s report, your insurance company will offer a settlement. Review this offer carefully and ensure it covers all necessary repairs and replacements as outlined in your policy.

9
Dispute Resolution If Necessary

If the settlement offered by your insurance does not cover your needs or you disagree with the adjuster's report, you can dispute the claim. This might involve additional documentation, hiring a public adjuster or legal consultation to advocate on your behalf.

When to File a Homeowners Insurance Claim

You should file a homeowners insurance claim when the cost of repairs or replacement for your home or belongings exceeds your deductible, and the incident is covered under your policy. This generally includes significant damages or losses due to events like fires, storms, theft or other covered disasters. Filing a claim can help alleviate the financial burden of these large, unexpected expenses.

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MONEYGEEK EXPERT TIP

One key home insurance claim tip is to not file a claim for minor damages that are close to or below the cost of your deductible. Your insurance won’t reimburse you for a claim that’s less than your deductible, so you'll end up paying out of pocket anyway and will potentially pay increased premiums since you’ll have a claim on your record. It's beneficial to assess whether the damage significantly impacts your living situation or financial stability before deciding to file a claim.

How Long Do You Have to File a Homeowners Claim?

The time frame to file a homeowners claim varies by insurer and state regulations, typically ranging from a few months to a year from the date of the incident. Always review your specific policy details, as some companies may require claims to be reported within a shorter window. Promptly reporting a claim can also help ensure a smoother process and quicker resolution. Be sure to contact your insurance agent or company immediately after any loss or damage to confirm deadlines and required documentation.

How Homeowners Insurance Claims Are Disbursed

Homeowners insurance claims are disbursed based on the terms outlined in your policy, either as actual cash value (ACV) or replacement cost value (RCV). The disbursement in home insurance claims process begins once the claim has been approved and the settlement amount has been agreed upon between you and your insurer. Payments may be made in one lump sum or installments, depending on the nature of the claim and the specific recovery needs.

The ACV accounts for depreciation, whereas RCV provides funds to replace your damaged items with new ones, regardless of the new costs. This process ensures you can effectively manage repairs and replacements without undue financial strain.

Pros and Cons of Filing an Insurance Claim

One of the main advantages of filing a homeowners insurance claim is financial assistance to cover large losses, which can be essential in restoring your property and alleviating financial stress. On the other hand, filing frequent claims can sometimes lead to higher insurance premiums and may affect your insurability in the future. Review the pros and cons of filing a home insurance claim below to help you make informed decisions.

Pros
Cons

Financial Recovery: Covers significant losses, reducing out-of-pocket expenses.

Increased Premiums: Can result in higher insurance costs in the future.

Restoration of Property: Helps return your home and belongings to their pre-event state.

Claim Limits: Filing multiple claims can lead to non-renewal of policy.

Professional Support: Access to professional assessment and repair services.

Time-Consuming: The claims process can be lengthy and complex.

FAQ: Homeowners Insurance Claims

The homeowners insurance claims process can often raise questions, especially when determining the best course of action after an incident. To help clarify some confusion, we answered some frequently asked questions on how to file a homeowners insurance claim.

How do you file a homeowners insurance claim?

To file a homeowners insurance claim, start by notifying your insurance provider about the incident as soon as possible. Provide them with your policy number and a detailed account of the damage. You will need to fill out a claims form, submit detailed documentation and photos of the damage, and possibly arrange for an insurance adjuster to assess the situation at your property. By understanding how to file a homeowners insurance claim, your initial documentation and prompt action will ensure a smooth claims process.

Should you file a homeowners insurance claim every time?

It’s not always advisable to file a homeowners insurance claim for every small incident. If the cost of repairs is less than or close to your deductible, it's generally better to pay out of pocket to avoid potential increases in your premiums. Frequent claims can affect your insurance record, possibly making it harder to obtain favorable terms in the future. Consider filing a claim primarily when significant damage occurs that surpasses your deductible and impacts your financial stability or living conditions.

When should you file a homeowners insurance claim?

You should file a homeowners insurance claim when the damage to your home or personal property is significant and covered by your policy, particularly if the repair costs exceed your deductible. Filing a claim is advisable when facing large, unexpected expenses that could financially strain you without insurance support. Additionally, if the incident poses safety issues or significantly impairs your living situation, such as structural damage from a storm or fire, initiating a claim promptly is crucial.

About Mark Fitzpatrick

Mark Fitzpatrick headshot

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.

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