You wake up in the night or come home from work to find a water heater busted and your home is soaked. This is definitely the time to file a claim. Filing a homeowners insurance claim is fairly straightforward once you know what to expect.
Time to file a claim
Most policies cover your home against damage from fire, smoke, wind, hail, lightning and certain types of water damage. More than likely floods and earthquakes aren’t covered by standard policies; you need a separate policy for each. Your policy may also have limits for the personal property it covers such as electronics, jewelry and furs, unless you purchased additional coverage.
Be sure to review your policy and know the type of coverage you have.
If the loss is covered, weigh your deductible against the cost of the loss. For example, if roof repairs will cost $1,500 and your deductible is $1,000, it may not be worth filing a claim. Also consider claims you have filed in the recent past. Homeowners insurance is intended to cover major loss, not relatively minor repairs. You do need to be wise when choosing to file a claim. Filing multiple claims within a few years may cause insurers to raise your rates.
Steps for Filing a Homeowners Insurance Claim
Filing a homeowners insurance claim typically involves submitting claim forms, providing documentation and working with the insurance company to arrive at a settlement.
Document the damage. Take photos and videos of any damage. Do not discard damaged items until the claims adjuster approves.
Make essential repairs. You can take reasonable steps to prevent further damage to your home, such as making emergency repairs to keep out weather, prevent further damage and intruders. Photograph damage before fixing it and keep receipts documenting the cost of repairs.
Contact an insured contractor to help you document the damage, take measurements and/or note any special findings. Reliable contractors are able to submit information for an Xactimate Report to help provide the cost of repairs and materials. It is a false accusation that you need multiple quotes. Insurance claims are not a bidding war. The cost of materials is the cost. Labor is labor. Xactimate calculates what is standard pricing. At times you have to adjust the pricing for skilled labor and premium products. Insurance companies are familiar with Xactimate and this should suffice for a job cost. You as the insured customer have the right to pick your own contractor and say no to “multiple bids”.
Keep all records. Keep copies of documents you submit to the insurer. Note the name of the insurance representative you spoke with, what they said and what other information you may need later on. Give written permission for your contractor to discuss your claim with your insurance company. You hired them to handle all the ends and outs of the claim. Your contractor knows how to speak the same language as your insurance company and can help fight for the most coverage.
What Happens After You Submit a Homeowners Insurance Claim?
After you file a homeowners insurance claim, a claims adjuster will visit to inspect the damage. They may ask for documentation, such as photos, videos or home inventory lists, to support your claim.
If your home is mortgaged, the check may be either made out to you and your lender or go straight to your lender. If your lender is the one who receives the check, contact them to see how payment for repairs will be handled. Lenders may want to approve contractors, deposit the settlement in an escrow account used to pay for repairs, or inspect repairs before issuing a payment. Depending on the size of the claim the check may be made out directly to you.
If a claim for personal property is approved, you’ll receive a check for the current cash value of the items even if the policy covers actual replacement value (the cost of buying new items). When this happens, you’ll typically get reimbursed for the difference in cost after you buy new items and submit your receipts to your insurer. Be sure to check your policy and ask your insurance company if you are on a deadline as to when you have to make those purchases and when you need to have receipts submitted.
I hope this has been helpful. In the event that you need to file an insurance claim, give me a call. I will walk you through every step of the way.
Kelsey Julian 214-908-3655
