Property insurance comes in various forms. But homeowners’ insurance is arguably the most popular. Its primary purpose is to ensure that you are financially protected if your house suffers specific kinds of damage. It usually covers issues such as fire damage, water damage, theft, and vandalism. However, the insurance claims that arise from property damage require patience and expertise. This is why it is important to understand house insurance claims.
The claims process can seem complex and unending. This blog post will break things down into simpler terms for you. Keep reading to discover everything you need to know about filing and handling house insurance claims.
What is a House Insurance Claim?
A house insurance claim is a formal request to your insurance provider. It is always for financial reimbursement for the repair or replacement of damaged property. Homeowners’ insurance ensures that you do not need to pay out of pocket for unexpected damage. This payment is usually for repairs around your home. In more serious cases, it is for the replacement of your entire home.
Before filing a claim, you should bear the limitations and extent of your policy in mind. Your insurance policy serves as the contract between you and your insurance provider. This means that its terms and conditions govern and determine your relationship. You should always take time to understand your coverage. This helps you avoid filing claims that your insurer will deny.
How to File a House Insurance Claim
Here is what you should do when filing a house insurance claim:
File a Police Report
Note that this does not apply in every case. You usually need a police report when a crime such as theft or vandalism causes damage. The police may not always catch the perpetrator, but the record is still important. You may also need a police report if you have suffered fire damage. It helps your insurance provider rule out the possibility of arson.
Contact Your Insurance Provider
Every insurance company has its specific claims process and what documentation they require. Contacting your insurance provider once you notice the damage will ensure your claims process starts early. It also means that you can get your settlement faster. Contacting your insurer will also give you insight into their claims process.
Document the Damage
You should do this even if your insurer does not outrightly require it. It is best to take pictures and videos of the damage as evidence. You should also curate a list of any damaged or lost personal items. This serves as evidence of the damage and will help strengthen the validity of your claim.
Prevent Further Damage
If your property requires urgent repair, you should see to it immediately. This will prevent any further damage. It also ensures that your home is safe to reenter when contractors or adjusters come to examine it. Preventing further damage can be boarding up parts of your home. You may need to turn off the water source to stop flooding. If a fire caused damage, you should turn off electrical appliances.
Meet with the Insurance Adjuster
The insurance adjuster is a professional that works with the insurance company. They examine the damage and your claim before recommending a sum for settlement. Your discussion with the insurance adjuster can have serious effects on your claim. Thus, you should avoid disposing of things at the site of damage. You should also document the damage before the adjuster comes around. Remember to be honest and truthful during the meeting.
Get Repair Estimates and Negotiate
Insurance companies and adjusters often provide estimates for repairs. However, it is important for you to also have yours. Use these estimates to negotiate the initial settlement offer. Do this until you secure one that comfortably covers the true cost of your home’s repair.
Receive and Evaluate the Settlement Offer
You may need to negotiate with the insurance company multiple times. This will result in several settlement offers. It’s advisable to have a public adjuster handle negotiations for you. This is because of their evaluation skills and general expertise. They can also assist you in achieving a much higher settlement. They have the negotiation skills to effectively deal with the insurance company.
Complete Repairs
The final step in the house insurance claim process is to carry out necessary repairs using the funds from your settlement. You should opt for contractors that your public adjuster recommends. Contractors that insurers or their adjusters recommend often place the insurer’s interests above yours.
Filing a Claim Against Another’s Insurance
Sometimes, someone else’s property causes damage to you. You could suffer an injury such as their floorboards giving way under you or their pet biting you. If they have homeowners’ insurance, you can file a claim against their insurance to get the reparations you deserve. In this scenario, the claims process is similar to your typical home insurance claim.
Discuss With the Policyholder
You should discuss with the homeowner regarding the injury you have suffered. This discussion should also entail how best to move forward. The homeowner may file the injury claim themselves. You can also do so by obtaining their insurance information. This information typically includes their insurance provider’s name and their policy number.
Contact Their Insurance Provider
You need to reach out to the homeowner’s insurance provider. It’s the same way you would contact your insurer when you want to file a claim. They will guide you through their claims process. They should also provide tips to make the process seamless.
Gather Evidence
You should record and document the injury you have suffered, as it may be crucial to the success of your claim. It can also help prove your claim if the homeowner denies the injury ever occurred.
Cooperate With Investigation
The insurance company will need to investigate your claim to determine its merit. It is in your best interest to cooperate with the insurance company. This means meeting with them when they ask and submitting necessary documentation.
When to File a House Insurance Claim
Before filing a house insurance claim, several factors merit consideration. As a general rule of thumb, you should only consider filing a claim when two requirements are met. One is when the damage is extensive or severe. This can be when the damage threatens the structural integrity of your home. Going through the claims process is worth it in this scenario. You may even hire a public adjuster to make things easier for you.
The second requirement is when your policy covers the damage. As a policyholder, you should read and understand your policy. This will prevent you from filing claims that will end up denied. You will also avoid unknowingly committing insurance fraud.
It is best to avoid filing a claim where the repair cost is lower than your deductible. Your deductible is the amount you need to pay before the insurance company covers the remaining expenses associated with your claim.
Lastly, you should always refrain from filing claims you know are not covered by your policy. For example, you should not file a home insurance claim when wear and tear caused the damage.
What is the Impact of Filing a Claim?
Many homeowners are unaware of this, but frequently filing claims impacts your record as a policyholder. This is because once you file a claim, the insurance company sees you as more likely to file another. This is especially true when you file multiple claims within a short period.
Your premium rate will likely increase in this scenario. That is the insurance company’s way of shielding themselves against the risk you pose. The type of claim you make could also affect your premium rate. Claims with heavy settlements, such as fire damage, will attract higher premiums.
In extreme cases, your insurer might prevent you from renewing your policy. This could happen if you file claims too often. Other insurance companies also consider your claims record before agreeing to insure your property.
How Long Do House Insurance Claims Take?
One cannot provide a standard timeline for the processing of house insurance claims. Some claims are resolved in a few weeks, while others stretch on for months.
The duration of your claim is often determined by how quickly you file the claim. The type and complexity of the claim also influence the duration. Smaller claims usually have a shorter resolution timeline. However, extensive damage requires extensive investigation and evidence. For example, fire damage. Your claims process may take months in this scenario.
Furthermore, the insurance adjuster’s findings may impact your claim timeline. This is because the insurance adjuster may cause the company to dispute your claim.
You can expedite this process by contacting your insurance provider promptly. You should also present your evidence and documentation on time. Make sure you only file claims covered by your insurance policy. You can further reduce delays by cooperating with the insurance adjuster regarding investigations. Hiring a public adjuster also helps to hasten the process. This is due to their experience dealing with insurance claims.
You can check out your state’s regulation on insurance claims for some reassurance. You can also discuss your concerns with your insurance provider.
How to Handle Claim Money
The entire point of the money from your claim settlement is to repair the damage to your house. In cases where your home is unsalvageable, the money is to replace your home. The payment may be in a lump sum or a series of checks.
Do not assume that the money will be automatically paid directly to you. Some insurance companies prefer to pay the contractors handling the repairs instead. This means the money may not go through you.
Sometimes, you may keep the money. For example, if the money is for payments you have made out of pocket. The same goes for any money left over after the contractors have completed repairs. However, this is subject to your policy and any other agreements you have with your insurance provider.
How Long Do Claims Stay on Record?
You should know that every claim you file stays on your record for an average of three to five years. You may have to pay higher premiums to keep your policy active during this time. Your claim record is a history or background of all the claims you have filed. It usually includes the cause of the claim and the settlement amount. Insurance providers often examine your claim records to determine your premium costs. Your record also influences their decision to insure you. A claim record full of complex and expensive claims means more risk for the insurer.
How to Cancel a House Insurance Claim
Ordinarily, canceling your claim begins with contacting your insurer. It works the same way as filing a claim. Inform the representative that you wish to cancel your claim. They may ask you to write a letter. Know that every insurance company’s process is different.
You can cancel your claim if your deductible is higher than the estimated repair cost. It is advisable to cancel the claim if your policy does not cover the cause of the damage. It is also best to cancel a claim if your policy does not cover the type of damage. For example, your policy may cover damage to structure but not damage to other structures such as your shed.
Conclusion
Filing a home insurance claim doesn’t need to be complicated. You simply need to understand the claims process. Know when to file your claim, and learn how to handle the settlement money once it comes through. Make sure to contact your insurance provider upon discovering the damage. Also, consider the impact filing a claim may have on your record before filling out the claim form. Lastly, be proactive and take charge of your claim. This will help avoid problems with your insurer or their adjuster.
Has your property recently suffered major damage? Leave the stress of filing claims to us. At On-Site Adjusting, we have a team of professionals who will secure an equitable settlement for you in record time. We also offer a free consultation for first-timers. Contact us today to get started.
