What Is the Process of a Homeowner’s Claim?

Homeowner’s insurance covers your home and belongings in the event of theft or property damage. If property is stolen from your car or home, a homeowner’s insurance claim is what you’ll need to file. But, how does that work?

To begin: You’ll want to have as many details about what caused your “loss” as possible. The more detailed your description of the event is up-front, the fewer questions you’ll have to answer later, and the faster your claim should be processed. This will also depend on the insurer and the type of claim being filed. The steps go as follows:

1. File a police report.
   1. If your home was vandalized or burglarized, you’ll want to begin the process with filing a police report. The best rule of thumb is to provide your insurer with a copy of the police report. This verifies the details of the crime or incident.
   1. If your claim is being filed as a natural disaster you will need to survey the damage before contacting your insurance company. Keep ruined or damaged items to document the loss when the insurance adjuster come by to assess the damages.
2. Get in touch with your insurance company.
   1. You should inform them of the incident, your insurer will be able to inform you of the coverage of the loss. They’ll also tell you how long you have to file the claim. Your insurance company can also give you a ballpark figure of the loss amount and if it exceeds your deductible. They could also tell you how long the process could take, as well as if you need to get a repair estimate on your own.
3. Filling out the forms.
   1. After those two steps, you’ll need to put your pen to paper, or fingers to the keyboard, to fill out all pertinent paperwork. A proof of loss form will likely be required. That form is where you give your personal information, the cause of loss, the area in your home where you’re claiming the loss happened, and the estimated loss amount. It would be smart to attach video or photos of the damage.
   1. Legally these claim forms must be submitted to you within a certain timeframe, after your initial contact about the loss with your insurer. Sending the filled paperwork back quickly could help you avoid delays.
4. Provide ALL of the documentation.
   1.  In a personal property loss case, you’re going to need to show proof of the loss prior to receiving a reimbursement offer. Furnishing the insurer with a receipt, home inventory, or other way of confirming the value and description of the damaged, or stolen pieces of property could improve your ability to get fully reimbursed for your loss.
5. Repairs of the small sort.
   1. Making a temporary repair is totally allowed, and often applauded by insurance companies so that there is no further damage to your property or the structure of your home.  
   1. You should keep all receipts and invoices that you are given as part of this repair so that you can be reimbursed by your insurance company when they pay for the claim repairs.
6. Get ready for the insurance adjuster.
   1. There will likely be an insurance adjuster sent to survey the damage to your property. The role of the adjuster is to assess the totality of the damages and confirm the details of the claim prior to reimbursement. The survey would include an evaluation of the cause of the loss being covered by your policy, a detailed observation of your home’s structure, provision to the adjuster of the documentation, photos, a home inventory, and receipts that relate to the claim.
   1. If you have a liability claim, the adjuster will ask for contact information for medical professionals, legal experts, and anyone who is familiar with the case.
   1. You will also be subject to an in-depth interview.
7. Gain estimates from contractors in the area.
   1. Getting estimates from contractors in your area is a great idea, as well as appraisers, depending on the extent of the damage. Having estimates could help you have more leverage in the event that your insurance company gives you a settlement offer that is too low.
8. Begin the repairs with your settlement money.
   1. If you come to an agreement with your insurance company you will receive the payout that is due to you. You may get two checks if you have a mortgage on the property, one for you and one for your lender. If the damage extends to the home’s structure the lender receives money to ensure that all necessary repairs take place. The lender usually places this money in an escrow account, releasing funds to pay as the work is completed.

There is no hard rule on when the insurance claim is paid out. There are, however, certain timeframes that have to be stuck to, depending on the state you live in and the insurance company. Some insurers are required to pay out claims within 30-to-90 days of giving the claim approval. There are variables to this process, and they affect how quickly you will receive a resolution to your claim. These are: How quickly your insurance company is contacted and fills out the claim forms, whether the claim is accepted or denied, and the type and size of your claim. If your claim is denied, you can consult with legal counsel if you’re unsure of what to do next. Lawyers can help you appeal your denial, but that could be an expensive route to take. It’s possible for you to appeal the denial on your own, but that will likely take a lot of work and learning the legalities in the realm of home insurance on your own. If you file a claim you need to be cognizant of the fact that your rates might be impacted, and that is entirely dependent on the type of claim you file, not necessarily the dollar amount of the settlement.  As far as seeing a rise in your premium, you will likely feel an 8-or-so% raise on a first claim. Your insurer is likely to cancel, hike rates, or non-renew and cancel policies after a non-weather-related claim. A personal liability claim is a major red flag for insurers. With one on your record getting coverage with a standard insurance company can be more difficult. Claims stay on your record between five-to-seven years, some companies vary in the timeframe. If you need a public adjuster to review your claim, because you’re unsure of the settlement being offered to you, our team at Gables Insurance Recovery is happy to help you better navigate your claim by presenting objective findings and negotiating your settlement.