As a homeowner, you can’t plan when you’ll need to file an insurance claim. But with 1 in 20 insured homeowners filing claims each year, there’s always a chance you’ll need to do so.1
Whether it’s water damage from a leak or broken windows from a natural disaster, home insurance claims are often urgent, and knowing how to start the process is essential. Here’s a step-by-step guide for how to file a homeowners insurance claim and receive funds as quickly as possible.
The exact claims process can vary from one insurer to the next, and it’s critical to understand the details of your homeowners insurance policy. But the claims process typically involves the following steps:
Before you clean up or contact your insurance agent, document the damages with a camera or phone. Your insurance company will ask for pictures. Images can help speed up the process and ensure an accurate claim payout.2
File a police report if the damage is due to theft or vandalism — it can help with the legal process, and your insurance company might require it. Finally, if you have any receipts showing the prices of damaged items, gather those as well.
After you document the damage, make temporary repairs. It’s essential to prevent further damage and ensure your house is as safe as possible. If you spend money on emergency repairs, save the receipts to get reimbursed later in the claims process.
For example, suppose a pipe causes a flood on your ground floor. You might use the main valve to temporarily turn off the water for the entire house or contact a plumber for a quick fix if you can’t do it yourself.
When your home is safe, contact your insurance company to file a claim. Most insurers offer multiple ways to file a claim, including over the phone, through the company app, or online. If you don’t know which method is best, check the company’s website and review the section for claims. Most insurers have claims representatives available 24 hours a day.
Complete the forms from your insurer, including pictures of the damage, proof of loss forms, and receipts for damaged or missing personal property. If you made any temporary repairs that cost money, you can submit receipts for that as well. Return the forms as soon as possible to ensure that the process continues to move forward.
Depending on your insurer, the claims adjuster may come before or after you submit forms. Insurance adjusters assess damage and determine potential costs for necessary repairs. The purpose of the visit is to determine the extent of liability for the insurance company. Work with your insurance adjuster to schedule a time. Prepare for the visit with a list of damages and be ready to show the adjuster each one.3
After the adjuster completes the appraisal, your insurance company estimates the cost of repairs to determine how much to pay. Your insurer provides the funds to complete repairs, and you decide which contractor to hire. It’s usually a good idea to compare estimates from multiple contractors to find the best deal.
The settlement offer is usually the final step in the claims process. Your insurance agent provides a settlement, the amount the company agrees to pay for repairs. The money usually arrives in two checks — the first check is usually an advance so you can start repairs as soon as possible.
Make sure to understand the total settlement amount and what it covers. You’ll also receive multiple checks depending on the type of damage. For example, you can usually expect separate checks for structural damage, replacement of personal belongings, and additional living expenses. If you agree with the offer, accept it and begin repairs. If you disagree, talk with the claims manager. You can also consult an attorney or contact your state’s insurance department.
Homeowners regularly deal with home repairs; not every repair qualifies as an insurance claim. But even if it does, it might not make financial sense to file one. Here’s how to determine the difference.
Filing a home insurance claim often makes sense in the following situations:
The damage is due to a covered event.
The amount of damage and cost to repair likely exceeds your deductible.
You couldn’t pay to repair or replace damaged property alone.
But it might not make sense to file a home insurance claim if the following applies:
The damage is from an event your insurance doesn’t cover.
The cost to repair or replace is less than your deductible.
The damages or costs are minor, and you want to avoid a possible rate increase due to a claim.
It’s always a good idea to have home insurance, and your mortgage lender likely requires it. But filing an insurance claim has advantages and disadvantages. Here’s what to consider as you decide whether to file.
The timeline for payment depends on different factors, including the appraisal, the type of damage, and how quickly you schedule repairs. You can begin to receive funds within a few days, or it might take multiple months.5
There’s a chance that the claims adjuster will offer you an on-the-spot settlement during the appraisal. If that occurs, you’ll receive funds right away. For personal belongings, you often need to replace the items and submit receipts to obtain the total amount.
Typically, the first check is an advance and only covers a portion of the total settlement. If you have a mortgage, your lender might also control your payment, which can dictate how and when you receive funds.
You can typically keep any leftover money from a home insurance claim, but it depends on the details of your policy and your state laws. If your insurance company pays a claim settlement to you directly and you’re able to find cheaper contractors or replacement materials, you could wind up with money left over.
As long as your insurance policy doesn’t stipulate that you return leftover settlement money, you should be able to keep it. But if your insurer pays your mortgage lender directly, you likely wouldn’t have access to the funds or receive any excess settlement money.
Insurance claims can affect your home insurance premiums and cause your rates to increase. When you file a claim, it appears on your loss history report, which records your insurance losses.
Insurers review your claims history when determining rates. Insurers charge more for coverage if you have a history of filing claims because they see you as likely to file more claims in the future. That doesn’t mean you shouldn’t file claims, but it’s essential to understand that it could affect your insurance costs.
Your home insurance company could deny a claim for several reasons, including insufficient documentation or missing the claim-filing deadline. If your insurer denies your claim, here’s what you can do to dispute it:
Find out why your insurer denied the claim. Contact your insurer and ask them to explain the reason for the claim denial.
Gather documentation and file an appeal. Gather any documentation you have related to the claim, such as phone calls, emails, and letters. Your insurance agent can walk you through the process of filing a formal appeal.
Consider working with a public adjuster. Public insurance adjusters can help you with the claims-appeal process and make sure your insurance company is treating you fairly.
Contact your state insurance department. If you believe your insurer unfairly denied your claim, you can contact your state’s insurance department to learn more about your rights and file a formal complaint.
Hire an attorney. You may want to consider consulting an attorney for legal advice about your claim. But this option should be a last resort, as it can be time-consuming and expensive.
It’s important to understand when it makes sense to file an insurance claim and how to do so. Here are answers to common questions about the process.
You can file an insurance claim for any damage or loss your homeowners policy covers. But it doesn’t always make financial sense. If the out-of-pocket repair or replacement cost is cheaper than your deductible, you can save money by not filing a claim.
Taking pictures and documenting the damage are the best ways to maximize your insurance claim. Images allow insurers to understand the damage better and create an accurate settlement offer. Ideally, create a home inventory to catalog the cost of personal belongings before you need to file a claim.
It’s possible. When you file a claim, your insurance company views you as an increased risk, and it can raise your premiums when your policy renews to offset that risk. How much your insurance goes up will depend on many factors, including where you live and which insurance company you have a policy with.
Whether a home insurance claim makes sense for you depends on the extent of the damage, the cost of repairs, and the amount of your deductible. For example, suppose the cost of repairs is $500 and your insurance deductible is $2,500. It’s probably not worth filing a claim in this case because your insurer won’t send you any money to help with the repair.
No. You can’t file two claims for the same loss. But you can reopen a claim if the adjuster offers you an on-the-spot settlement during the appraisal and you find additional damage later.
Most insurance companies require homeowners to file claims within one year from the date of damage. You may not receive any money for repairs if you miss the deadline. Because of that, it’s essential to file a claim as soon as possible.
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