How to File a Homeowners Insurance Claim
Key Facts
- Claims may fall under three categories, including dwelling, personal, and liability coverage.
- If you’re unsure which type of claim to file, your insurance agent can help you decide which is most appropriate.
- Understand your policy and coverage. With a solid knowledge base, you’ll know what to ask for and what to expect from your insurance company.
- File your homeowners claim promptly for a quick response and a faster payout. If you feel you’re not getting a timely response, follow up.
Filing a homeowners insurance claim is a required action to receive financial assistance when your home or belongings are damaged or lost due to covered events. The process is relatively simple, and you should take action quickly after damage to your home or property occurs.
Start by contacting your insurance company, documenting the damage, and working with the adjuster to assess and process your claim.
How Do I File a Homeowners Insurance Claim?
Homeowners insurance policies provide financial protection for the cost of damage to your home and personal belongings due to covered events, such as certain natural disasters, theft, or accidents.
Some financial experts recommend that you file a homeowners insurance claim when damage occurs to your home or property and the cost of necessary repairs or replacements comes to more than at least twice the amount of your deductible.
| Steps to File a Homeowners Insurance Claim | |
| 1. Assess the Damage and File a Police Report | Evaluate the extent of the damage to your property and, if applicable, file a police report for incidents such as theft or vandalism. |
| 2. Notify Your Insurance Company | Inform your insurance provider promptly about the damage or loss, and provide basic documentation detailing the incident and the extent of damage. If you purchased your insurance through an agent or broker, you may have to go through them at this stage. |
| 3. Complete Claim Forms | Fill out the necessary claim forms provided by your insurer to officially initiate the claims process. |
| 4. Document the Claim | Gather evidence, such as photos, videos, and itemized lists of damaged or stolen items, to support your claim. |
| 5. Mitigate Further Damage | Take immediate steps to prevent further damage, such as covering leaks or securing damaged areas, when it’s safe to do so. |
| 6. Relocate or Get Help With Living Expenses | If your home becomes uninhabitable, make arrangements for temporary housing or contact your insurance provider for assistance with living expenses. |
| 7. Work With the Insurance Adjuster | Cooperate with the insurance adjuster assigned to your claim while they assess damage and determine coverage. |
| 8. Get Independent Repair Estimates | Seek repair estimates from qualified professionals to ensure you have accurate assessments of any required repairs. |
| 9. Review Settlement Offer | Review the settlement offer provided by your insurer and discuss any concerns or discrepancies. If the insurer offers less than the independent estimate for repair plus the deductible, submit your independent estimates. |
| 10. Complete Repairs | If you agree to the settlement, proceed with the repairs or replacements, keeping records of all expenses and work performed. |
Follow these 10 simple steps to ensure the homeowners insurance claim process goes as smoothly as possible:
1. Assess the Damage and File a Police Report
In the event of a natural disaster, fire, or other life-threatening situation, your first priority should be getting somewhere safe. Once you can safely do so, visually assess the extent of the damage to your property.
If a crime, such as theft or vandalism, was involved, file a police report. Your insurance company will likely require this report for the claims process. Lisa Koosis, a former claims specialist, says, “When evaluating the damage to your home, always prioritize safety. If the area in question is inaccessible or unsafe, call in a professional.”
2. Notify Your Insurance Company
Contact your insurance company promptly to initiate the claims process. Some companies offer the convenience of online filing, mobile apps, or assistance with an agent over the phone.
Timeliness is critical. Avoid procrastination to prevent missing deadlines, especially in the case of natural disasters where delays can be costly. In some cases, missing a filing deadline will result in your claim being denied.
3. Complete Claim Forms
The insurance company will send you the necessary claim forms. State laws usually dictate the time frame within which they must provide these forms. If they drag their feet and ultimately deny the claim because you missed the deadline, this can be an important part of your dispute.
Promptly fill out these forms as soon as you receive them, and ensure you return them to the insurer within the specified time frame.
4. Document the Claim
Thoroughly document the damage by taking clear photos and videos from multiple angles. The more detailed the documentation, the better.
Maintaining a home inventory list of your belongings can be valuable. Keep receipts for damaged items to ensure you’re reimbursed appropriately. Lisa Koosis, a former claims specialist, suggests, “If you don’t want to save receipts, photograph them on your cell phone. You’ll have easy access to the information if you have to file a claim.”
5. Mitigate Further Damage
Take immediate steps, within the bounds of safety, to prevent additional damage to your property. Examples include covering a broken window to prevent rain from getting inside or cleaning up water from a burst pipe.
Prioritize safety and avoid taking unnecessary risks. Always retain receipts for expenses incurred while mitigating further damage, as these can be included in your claim for reimbursement.
6. Relocate or Get Help With Living Expenses
If your home has sustained severe damage and isn’t safe for occupancy, consider relocating temporarily. Keep all receipts for expenses related to your relocation.
Discuss your policy limits with your insurance company to understand the coverage available for living expenses during this period. Ensure you choose a rental within those coverage limits.
Some insurers will reimburse family members if you stay with them. Check with your insurer to see if they provide this coverage.
7. Work With the Insurance Adjuster
When the insurance company sends an adjuster to evaluate the damage and determine your settlement, be prepared to meet with them. Show them your receipts, damaged items, and any records from your home inventory.
After the adjuster’s visit, stay in touch with your insurance company. Politely but firmly inquire about the progress of your claim to keep things moving smoothly.
8. Get Independent Repair Estimates
Contact your preferred contractors or specialists to obtain cost estimates for necessary repairs. These estimates will give you an accurate idea of the repair costs, but remember that pricing can be affected by availability.
Many experienced contractors are skilled at working with insurance companies, so weigh their input. Make sure to choose qualified professionals with good reviews.
9. Review Settlement Offer
Carefully consider the offer from your insurance provider. Keep in mind that this may not be your final figure, and you’re welcome to negotiate before accepting an offer. Your contractors and specialists may also assist with this negotiation by providing more information and cost estimates at your request.
In most cases, the initial settlement offer will be low. A little negotiation can result in a higher number in most cases.
10. Complete Repairs
Money from an insurance claim can help you hire a contractor and complete repairs as required. Most insurers provide an initial payment followed by additional funds as work progresses. If your claim involves multiple payments, make sure you understand the purpose of each one and any conditions for receiving them.
How Long Do Homeowners Insurance Claims Take to Settle?
The time frame for settling a homeowner’s insurance claim varies widely and has no set duration. It could range anywhere from a few weeks to several months, depending on your provider, the nature of the damage, and the amount needed to make full repairs.
You can help speed things along by maintaining good communication with your insurance provider, filling out forms promptly, and regularly checking in on the progress of your claim. Don’t be afraid to reach out and ask questions. Both sides want an efficient resolution, and if someone is dropping the ball in their office, they’ll want to know so they can address it.
Will My Homeowners Insurance Payment Increase if I File a Claim?
Yes, filing a homeowners insurance claim will likely increase your premium costs.
If you’ve had multiple claims within a short period of time, your premium increase will be more substantial. Your insurance company may consider nonrenewal or dropping your coverage if you file repeated claims.
Certain types of claims are more likely to result in premium hikes. For example, claims related to dog bites or theft are more likely to result in higher premiums because these events are viewed as more likely to occur again in the future. However, a natural disaster, such as a tornado, is generally not viewed the same way.
While it’s wise to be cautious about filing small or unnecessary claims, you shouldn’t hesitate to file when substantial repairs or replacements are needed to protect your property. This is why you have a policy in the first place.
Frequently Asked Questions About Filing a Homeowners Insurance Claim
We’ve compiled some of the most frequently asked questions about homeowners insurance, so you have the answers you need to make informed decisions throughout the process.
Yes, you can typically cancel a homeowners insurance claim. Contact your insurer and inform them of your decision to stop the pursuit of the claim.
An insurance claim payment usually goes directly to the policyholder unless special arrangements have been made with either lien holders, such as mortgage companies or other companies that work with the insurance company, or contractors for repair work via an Assignment of Benefits.
The time frame for filing a homeowners insurance claim can vary depending on your policy and insurer, the nature of your claim, and the cause of the damage. In some cases, the deadline for filing will be based on the date the damage occurred, such as the date of the theft or natural disaster, or it may be based on the date when you discovered the damage.
However, in all cases, it’s advisable to file as soon as you discover damage or loss. Check with your insurance company and/or review your policy to understand the exact timelines so you can avoid being denied coverage based on this issue alone.
If your homeowner insurance claim has been denied and you believe you have grounds for a dispute, you can take the following steps:
1. Review your denial letter carefully to understand why your claim was denied.
2. Reach out to your insurance provider to discuss the issues and gain clarity regarding their denial.
3. Provide any supporting documents or evidence you have that may refute their denial.
4. File an appeal with your insurance company directly. Insurers typically have a formal appeals process for denied claims.
5. If necessary, take steps to appeal the denial by contacting the state insurance board, a mediator, or an insurance lawyer.