8 Things to Know When Filing a Homeowner’s Insurance Claim
A homeowners insurance policy is a financial protection plan that individuals must consider investing in. It provides crucial protection for property against theft, natural disasters, and other unfavorable circumstances. That said, before signing up for one, individuals must read the fine print, as the insurance only covers certain damages. Additionally, after investing in one, learning how and when to file a claim is crucial for getting the full benefits of that policy.
1. Know when to file a claim
While it is recommended to file a claim immediately, homeowners need to be careful about what they file claims for. Experts advise filing a claim only when specific criteria are met.
- Estimate is more than the deductible
If the damage is minor or just a little over the deductible, it is better to cover the repair costs out of pocket. This is because every claim is reported to the Comprehensive Loss Underwriting Exchange (CLUE), a national database that tracks claim activity. Too many or repetitive claims, even those with a low insurance payout, can result in a higher premium at the time of policy renewal. - Damage is covered and extensive
This insurance plan is not meant to cover daily appliance breakdowns or other smaller repairs. Rather, its purpose is to provide protection against significant or catastrophic events like fires and hurricanes.
In any case, homeowners must be well aware of the deductible limit and damage coverage offered by the policy. It is important to note that these differ from company to company and are subject to change at any point in time, so it may be worthwhile to sit down with the agent or a lawyer to understand the nitty-gritty.
2. Check the policy’s time limit
Time limits for filing insurance claims vary by company and policy, just like coverage. That said, most policies require homeowners to file a claim as promptly as possible.
3. Document the damage
One thing every homeowner should do is take inventory. This should be done when applying for the policy or before disaster strikes. Homeowners should go through everything in their homes and take photos and videos of it all, including antiques, electronics, jewelry, collectibles, and furniture. This inventory can be maintained on an app such as the National Association of Insurance Commission’s free Home Inventory app or safely stored in a secure location, like a safe deposit box, a loved one’s home, or an office. It is also good practice to update this inventory regularly and keep receipts as evidence for filing a claim.
If the damage has already occurred without proper inventory management, take clear photos and videos of it. Thoroughly document the damage to maintain a comprehensive record of all necessary repairs, replacements, and fixes. Homeowners can create an inventory from memory or rely on older photos and videos taken by loved ones to make a list. Online sellers can provide the estimated cost for each item.
4. Make temporary repairs
Living in a home with a broken roof or shattered windows can result in more damage. Take small steps to make temporary repairs until the adjuster arrives. This includes securing the property with doorways and windows and buying tarps to cover any holes. These stopgap repairs can help prevent any further issues, thus helping save time and money. Save the receipts for all the expenditures here, as they could be reimbursed by the company. Additionally, avoid throwing away the broken or damaged items until the adjuster has visited the home.
5. Ask questions
Individuals should voice any concerns and ask questions to better understand the situation over the course of the claims process. This will help homeowners prepare for the next steps as well. If the house is uninhabitable and results in relocation, they should communicate this to the insurer.
6. Keep contact information handy
Individuals should keep track of the people they meet and talk to during the claims process. This includes insurance agents, government officials, FEMA representatives, and law enforcement authorities. They should also maintain detailed records containing specifics such as their name, titles, contact information, and a summary of the conversations, along with the date and time of each interaction.
7. Document all expenses
Homeowners must maintain a clear record of all the expenses incurred. This includes the cost of repairs and even hotels and meals in case of evacuations. This can be helpful if the policy covers additional living expenses.
Residents should note that disaster recovery can take time, but having the documents ready can help. So, keeping as much information on record as possible can help.
8. Communicate with an adjuster
In most cases, the insurance company will appoint an adjuster to the case, who will be the primary point of contact throughout. Be sure to give them clear details of the damage, answer their questions, and offer documentation as evidence of loss. Keep them informed about any commissioned repairs. That said, it is important to note that the adjuster will represent the company’s interest, not the homeowners.
For a more neutral perspective, individuals can consider hiring a public insurance adjuster to manage their claims and communicate with the company on their behalf.
