Filing a homeowners insurance claim can be an exhausting and complicated process. But our team of insurance experts at Bankrate has some tips to make the process less cumbersome and help guide you through it more smoothly. Consider your step-by-step guide like Ikea instructions; it should get you to your goal with minimal effort.
1. Check Your Policy
Homeowners insurance provides coverage against major property damage or loss caused by events listed in your policy as “insurance perils.” Reviewing your policy is key in assessing if filing a homeowners claim is financially worthwhile.
Filing a homeowners insurance claim usually makes sense when the estimated loss exceeds your deductible; however, any claims reported to CLUE could increase premiums at renewal time. Keep records of phone calls and meetings during your claims process so you can document its entirety. This can also assist with future litigation proceedings.
2. Report the Incident
Homeowners insurance provides essential protection from various hazards, such as burglary, fire, and storm damage, so when an event occurs that requires coverage, such as burglary, fire, or storm damage, be sure to file a claim right away by calling your agent or insurance company’s claims representative right away; their representatives can help fill out all necessary forms and advise on next steps.
Your insurance broker will also advise when and why it makes sense for you to file a claim and, should the claim be denied, what steps are next. Document all damages with photos or video as evidence and create an inventory list of lost or damaged items. Also keep receipts for expenses like tarps and cleaning supplies when filing.
3. Communicate with Your Insurance Company
As homeowners insurance is designed to cover significant and unexpected damage from hurricane wind loss, fire, or someone being hurt on your property, it can be challenging navigating its process. Before reaching out to your insurer, be sure to carefully examine your policy. By understanding what’s covered and any restrictions, it will enable you to effectively communicate your needs and concerns to their representative.
Be sure to record all communications with your insurance company, from meetings and discussions to documents related to the claim itself, in a notebook or folder for future reference if necessary. Doing this may come in handy should anything change in terms of policy coverage.
4. Make Temporary Repairs
No matter whether you employ a contractor or perform repairs yourself, it is crucial that repairs be documented thoroughly and kept a record. Save receipts for purchases such as materials or even hotel stays to get reimbursed for the full costs associated with repairs.
Documenting any additional damage found after having your home inspected by an adjuster is also advisable. Most homeowner policies cover extra living expenses incurred from having no choice but to leave, such as hotel stays and meals out, but in order to access these benefits quickly, you’ll need proof. Providing documentation can speed the process of reopening your claim.
5. Save Receipts for Expenses
Homeowners insurance was never intended to cover day-to-day maintenance needs, and claims are usually only filed when significant or unexpected losses arise. Filing for minor damage won’t net much once your deductible has been deducted by your insurer, while multiple claims over time could lead to nonrenewal at renewal time.
Experts advise keeping receipts for temporary repairs and any additional expenses incurred while your home is under renovation, including living costs. Furthermore, save receipts for any items damaged during repair work as well as copies of your inventory list (or use our free home inventory app) so as to expedite this process more quickly.
6. Challenge the Insurance Company’s Decision
Sometimes disagreements occur between insurers and policyholders. You might believe the damage is more extensive than what the insurer agrees, or there may be confusion as to whether an item is covered under your policy. In these difficult situations, it’s essential to remain calm and document all events that transpired—dates, conversations held, and what was said between contacts.
Alternative dispute resolution techniques, like mediation, which involves an impartial third party to help both sides find common ground, can also help swiftly settle your disagreement. Your independent insurance agent is your advocate throughout this process and should serve as your advocate.
7. Schedule a Home Inspection
Homeowners’ insurance claims can be complex. From trees falling on your house to broken pipes, it’s essential that any damage be reported quickly, expenses tracked closely, and communication established with your insurer so as to get reimbursed as quickly as possible.
Once your insurance adjuster receives your claim, they’ll likely request to inspect it directly. A qualified home inspector can be invaluable during this process; you could even qualify for tax deductions by keeping accurate records of inspection-related expenses incurred while buying or selling property; landlords and home office operators also benefit from keeping these records.
8. Schedule a Repair Estimate
Doing your homework before beginning may speed up the process; gather documents like photos of damage and estimates for repairs; additionally, save receipts from expenses incurred, such as hotel stays or meals, should evacuation become necessary due to damage.
Be mindful that filing a claim could increase your premiums; consider whether the repair estimate exceeds your policy’s deductible before making your decision. Furthermore, frequent claims could cause your insurer to stop renewing you altogether or consider you a high-risk customer, potentially incurring further expenses in the form of nonrenewals and high-risk customer classification—something that may prove costly over time.
9. Pay Your Deductible
Your deductible choice has an enormous effect on your premium payment. When choosing how high to set it, think carefully about whether this amount can comfortably meet your short- and long-term financial obligations.
Standard deductibles typically start at $1,000; however, you can select lower or higher deductibles to save on premiums. Deductible payments do not directly go to your insurance provider but rather are subtracted from claim payouts as part of any claim settlement agreement. If you are concerned that an approved claim would force you to be unable to cover your deductible amount, speak with your VIU by HUB Advisor about increasing emergency savings.
