Filing a home insurance claim can feel daunting, especially if you’re already dealing with damage to your home or belongings. But knowing how and when to file a claim can help you get back on your feet faster and minimize stress.
Whether you’re facing a burst pipe, a kitchen fire, or natural disaster damage, this guide will help you determine when to file a claim, key steps to take, and tips to make the process go smoothly.
When to file a home insurance claim
Home insurance provides financial protection after a sudden or unexpected event, but not every instance is covered, and in some cases, it may not be worth it to file a claim. Understanding your coverage details and how deductibles factor in can help you determine when it makes sense to file a claim.
Types of damage commonly covered
A standard homeowners insurance policy generally covers losses caused by the following:
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Fire and smoke
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Storms, including wind and hail
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Water damage from burst pipes or overflowing appliances
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Theft or vandalism
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Falling objects
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Weight of snow and ice
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Damage from an aircraft or vehicle
Note: Home insurance generally does not cover damage caused by flooding or storm surges, water backups from the sewer or a failed sump pump, earthquakes, sinkholes, or intentional acts.
Some insurers may exclude other events or perils from coverage as well, so it’s essential to understand your policy or discuss exclusions with your insurer thoroughly.
Deductibles and home insurance claims
When an insurer issues a claim check for a dwelling, personal property, or other structures claim, it will subtract a home insurance deductible from the payment. As such, the deductible represents your minimum out-of-pocket costs after a claim.
Deductible options vary by insurer but often range from $500 to $10,000, though they may be represented as a percentage, such as 2% of your dwelling coverage.
Tip: Higher deductibles mean you’ll pay less for coverage but more after a claim, while lower ones reduce your out-of-pocket expenses but lead to higher premiums.
When it makes sense to file vs. pay out of pocket
Before you file a claim for a covered incident, it’s wise to consider the cost of repairs as they relate to your deductible. For instance, if you have a $1,000 deductible and repairs cost $900, you won’t receive a claim payout since your deductible exceeds the cost of repairs.
Similarly, if repairs cost $700 and you have a $500 deductible, it may not be worth filing a claim if you can afford to pay out of pocket, as your insurer would only issue a payment for $200.
Once a claim is filed, it remains on your claims history for several years and may lead to increased premiums down the road. If you have several claims over a relatively short period, you may even find it hard to find coverage.
Conversely, filing a claim may make sense if repair, replacement, or rebuilding costs exceed your deductible and you can’t or don’t want to pay out of pocket.
How to file a claim
Follow the steps below to successfully file a home insurance claim:
Step 1: Document the Damage
When possible, take photos and/or video (from multiple angles) of all affected areas and items. You should also collect detailed information, including the date, time, and circumstances that led to the damage or loss.
Step 2: Contact your insurer
Reach out to your insurance provider or agent to report the claim. Many insurers now offer online portals or mobile apps to help policyholders start claims quickly. However, if you have immediate questions about a claim or would prefer to speak to an agent or claims specialist, consider contacting your insurer by phone.
Step 3: Prevent further damage
If it’s safe to do so, take reasonable steps to prevent additional damage while you wait to speak or meet with a claims specialist or adjustor. For instance, you may want to cover a broken window due to a storm or shut off the water after a broken pipe.
Always save your receipt so you can provide it to your insurer during the claims process.
Step 4: Meet with the insurance adjuster or claims specialist
Depending on your insurer and type of claim, your provider may send out an adjuster or claims specialist to evaluate the damage and file a claims report. In other cases, they may speak with you by phone. Ensure you can meet or speak with the specialist and provide any related documentation.
Your adjuster or claims specialist can also answer any questions you may have and serve as a point of contact while your claim is being processed.
Step 5: Receive your insurance settlement offer
Once the claims report is filed, your insurer will issue a settlement offer. This amount is based on the cost of repairs or replacements minus your deductible. Review it carefully and ask your insurer any questions you may have regarding the specified amount.
Note: Depending on the nature of the damage, your policy, and your insurer, your claim payout may be divided into multiple payments. This is common with replacement cost coverage, as your insurer may initially issue a payment for the actual cash value (e.g., depreciated value) of the damaged property, following up with an additional payment for the full claim value once the repair or replacement is complete.
Step 6: Complete repairs or replacements
Use your settlement funds to make required repairs or replace damaged or stolen belongings.
If you need to make repairs or rebuild a portion or all of your property, working with licensed and insured professionals who have experience completing the required work is crucial. Sometimes, an insurer may provide a list of preferred partners, though you typically reserve the right to choose your own professionals.
Tips to make the claims process go smoothly
Claims are often filed during a period of increased stress and anxiety, but there are several things you can do to make the process go as smoothly as possible.
File promptly
The faster you file a claim, the quicker you can begin making repairs, rebuilding, or replacing damaged items. Once you file your claim, you can start getting back on your feet and reduce the risk of any additional damage. Filing promptly can also facilitate a more accurate damage analysis and ensure you meet insurer deadlines.
Keep a home inventory
Creating a home inventory, including photos, receipts, and serial numbers when available, can expedite the claims process and ensure you are adequately reimbursed for your belongings. Photos and video are an easy and effective way to complete a home inventory, but you can create one with a pen and paper.
Read your policy in advance
Understanding your policy coverage before you need it can help you respond quickly in the event of an incident. Pay close attention to policy exclusions, limits, and deductibles to ensure you know what to expect.
Stay organized and keep all claim documentation
Keeping track of all pertinent information and documentation, such as the events that led to the claim, photos or videos of damage, conversations with your claims specialist, and repair or rebuilding quotes, will make the process easier. You can create a specific file or folder on your computer or maintain a hard copy of relevant information in a central location.