What You Need To Know About Home Insurance Claims

Weather damage, accidents, thefts, and property damage happen. Knowing how and when to file is crucial information to understand. Here’s what the process looks like :

• History : Submitting one will go on your claims history.
• Deductible : You will have to pay your deductible.
• Paperwork : You will need to compile an inventory of damaged/missing items, provide proof such as receipts, and images.
• Increased costs : You could see an increase upon renewal.
• Claim status : There is a chance it could get denied. Make sure you’re covered before filing.

Whether or not you should file depends on many factors, including :

• The cost
• Your deductible amount
• Your claims history
• Your ability to pay for repairs out of pocket
• Loss of your claims free discount

The cost you pay is pooled and used by insurers to payout. When you begin the process, money is taken from the pooled money to cover your payout. You are responsible for paying the deductible amount, and your insurer will pay the remainder of the costs for included perils.

It also provides you with protection for loss and damage to personal property or contents, including personal belongings such as clothing, furniture, electronics, and other common items.

It will help with the cost to replace these items, subject to your limits (home replacement cost vs actual cash value).

After damage or loss due to home theft, fire, water damage, or weather events, owners will file to recover the personal property, which is separate from structural damage.

Personal items such as jewelry, art, and collectibles may not be included and you may need an insurance rider to cover them.

There are certain situations that are often worth submitting for, as long as the costs are not too close to your deductible :

• Theft : Any personal belongings related to theft.
• Property damage and vandalism : Substantial damage to the external parts of your building or theft.
• Water and flood : Burst pipes, severe weather.
• House fire or lightning, smoke : Often these types of damage can impact in structure of your building.
• Severe weather damage : Flooding or fallen trees.
• Liability : Injuries on your premises related to legal fees.

Filing is a fairly standard process. Most companies follow very similar steps as outlined here :

• Assess the situation : Take a deep breath and assess the situation. Do a quick overview of the damage. Take steps to prevent further damage (shut off the power) and protect your family. If it is not safe, go outside. If a burglary took place, call the police to file a police report.
• Contact your insurer : Notify your insurer as soon as possible. They will assist you with starting the process and assigning an adjuster. Your insurer can help you find local contractors to help you secure your property.
• Document the damage : Take pictures and video of all damage. Record everything in a home inventory document. Do not throw away anything until it’s been approved by your adjuster.
• Clean up : Hire a restoration company to help you clean up your property. This will be paid for by your insurer.
• Determine repair costs : The adjuster will visit the building and assess damage. Based on the initial assessment of damage, loss and repairs, you’ll get an estimate. This number will change as you finalize the process.
• Assess contents loss : Based on your inventory, your adjuster will assess and calculate a settlement value to replace your damaged contents.
• Repair damage : You can hire a contractor, or your insurer can suggest a company for repairs.
• Finalize the process : Once the restoration work is complete and you’ve been compensated for your contents, you will sign forms to complete the process.

Filing a claim does not automatically mean it will be accepted. There are many reasons a it can be denied, including :

• Lack of coverage : You may not have it for a specific type of claim that you are submitting for.
• Lack of proof : You need to show you possessed items and damage was caused. If you can’t, some or your entire claim could be denied.
• Uninsured peril : There are certain perils that are not included such as flooding, earthquakes and other severe weather events. These can be added separately.
• Poor maintenance : If damage is a result of neglected maintenance, it can be denied. For example, if you have roofing issues and don’t get them repaired and your roof collapses, you may be on the hook for the repairs.
• Intentional damage : Any intentional damage caused by the owner will result in a denial.

Other reasons it could be denied is if you lie to your insurer on your application or you are late on payments.