Jeffrey Wade
Homeowners insurance is a type of property insurance that covers losses and damages to your home in the event of a disaster, such as fire, weather damage, or theft. It also provides liability coverage in case someone is injured on your property. When filing a claim, it is important to know your rights and responsibilities, including understanding your policy's coverage, providing the necessary information, and selecting a contractor for repairs. To ensure adequate coverage, homeowners can consider add-on policies and obtain appraisals for high-value items. Additionally, maintaining a home inventory and taking preventive measures to secure their property can facilitate the claims process and protect their investment.
| Characteristics | Values |
|---|---|
| What is covered | Damage or destruction by fire, weather, theft, or another covered disaster |
| Rebuilding costs, cost to replace personal belongings, liability lawsuits | |
| Temporary living expenses if you are unable to stay in your home after a covered loss | |
| Water damage, but not flood damage (this can be purchased separately) | |
| Mold damage caused by a covered peril | |
| What to do when filing a claim | Find out what your deductible is |
| Get an appraisal for high-value items such as jewelry, antiques, electronics, collectibles, and guns | |
| Collect 24-hour contact information for your insurance agent and insurer | |
| Make a list of policy numbers, insurer and insurance agent's phone numbers, website addresses, and mailing addresses | |
| Check if the company has an emergency information hotline | |
| Know how to work with contractors | |
| Make temporary repairs to prevent further damage | |
| Save receipts for temporary repairs and living arrangements | |
| Provide contact information, police report (if the loss is due to a crime), receipts, photos, etc. to prove your loss | |
| Keep copies of everything | |
| Get the OK to reenter your home if there is extensive damage | |
| Provide name, contact info, policy info, type and date of loss, and a description of the loss and any injuries |
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What You'll Learn
Receipts, photos, and other proof of loss
When filing a homeowner's insurance claim, it is important to provide as much information as possible about your loss. This includes receipts, photos, and other proof of loss or damage. Here are some detailed instructions on what to submit:
Receipts
Keep all your receipts, especially for any temporary repairs or purchases made to protect your property from further damage. For instance, if you cover damage to your roof, walls, doors, or windows with plastic sheeting or plywood, save the receipts for reimbursement. Also, keep receipts for any additional living expenses, such as food, housing, telephone, utility installation, relocation, storage, and furniture rental costs incurred due to temporary living arrangements. These may be covered under the "loss-of-use" portion of your policy.
Photos
Take photographs of all the damage to your property. Document each room and include close-ups of specific items that have been damaged or lost. If possible, include brand names and model numbers of appliances and electronic equipment in the photos. These visual records will provide clear evidence of the extent of the damage and support your claim.
Other Proof of Loss
In addition to receipts and photos, there are other types of documentation that can serve as proof of loss. Make detailed lists of all damaged or lost items, including their brand names, model numbers, purchase dates, and estimated values. If the loss is due to a crime such as burglary, notify the police and obtain a copy of the police report. Keep a record of all communications with your insurance company, including emails, letters, and notes from phone conversations. Additionally, consider obtaining an independent appraisal for high-value items, such as jewelry, antiques, electronics, collectibles, and guns, to ensure they are properly covered under your policy.
Submitting the Information
Once you have gathered all the necessary documentation, submit it to your insurance company promptly. They may send you a "proof of loss" form to complete, which is a formal statement of your claim. Provide as much information as possible and be ready to supply additional documentation if needed. Remember to keep copies of everything for your own records. By submitting comprehensive proof of loss, you can help expedite the claims process and ensure a fair settlement for your homeowner's insurance claim.
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Inventory of items and their value
Creating a home inventory is an important step in ensuring you have the right homeowners insurance coverage. It can be a simple process, involving taking photos or videos of your belongings, or using an app. A home inventory can also be a written list, but it's generally simpler to create a digital inventory, as it's easier to store, update, keep safe, and send to your insurance company.
When creating your inventory, it's a good idea to start with your most expensive property, such as furniture and electronics, and work your way down. You can also go room by room, ensuring you capture everything. While recording, describe each item in detail, including the manufacturer, model, when you bought it, and the price you paid for it. You don't need to list every single item, especially for things like clothing or dishware; instead, you can group them into general categories and count the number of items in each. However, be sure to call out any valuable items within these categories, such as an expensive suit or dress.
For high-value items like jewellery, antiques, electronics, collectibles, and guns, consider getting appraisals and scheduling them under your policy. Most homeowner's policies have fixed limits and fixed causes of loss for these items, and the limits may not match the value of your possessions. By specifically scheduling these items on your policy and backing them up with a current and valid appraisal, you can ensure they are properly covered.
It's also important to keep your home inventory up to date. You can do this annually when you review your homeowners insurance coverage, once a month, or whenever you make a major purchase. Creating a thorough home inventory takes some effort, but it will be worth it if you ever need to make a major home insurance claim.
There are several tools and apps available to help you create your home inventory, such as Nest Egg for iOS or HouseBook for Android. Myval is another useful app that uses AI to document and price any item you take a photo of. Additionally, Uphelp.org, a non-profit organisation that assists with insurance companies, offers spreadsheet templates you can download.
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Contact details for your insurer and agent
Firstly, collect the 24-hour contact information for both your insurance agent and insurer. This includes phone numbers, website addresses, and mailing addresses. Having this information readily available, such as saved in your smartphone contacts or written down in a safe place, will help expedite the claims process.
Secondly, be aware of any emergency hotlines or after-hours contact options that your insurance company may provide. Some companies offer dedicated hotlines for urgent matters or after-hours support, which can be crucial in the event of a sudden or unexpected incident.
Additionally, consider creating a comprehensive list of relevant contacts. This list should include not only your insurer and agent's details but also your policy numbers, claim numbers, and any other pertinent information. Keeping this list up to date and easily accessible will benefit you when you need to file a claim or require assistance.
It is also beneficial to understand the roles and responsibilities of your insurance agent and insurer. While your insurance agent may be your primary point of contact for policy purchases and renewals, as well as general inquiries, your insurer is the entity that underwrites and administers your policy. Knowing whom to contact for different situations can streamline your interactions and ensure you receive timely and appropriate assistance.
Finally, it is worth noting that you have the option to hire a public adjuster, who is a licensed professional working on your behalf to appraise and negotiate your property insurance claim. While this may incur additional costs, it can be advantageous if you feel you need more dedicated support throughout the claims process.
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Details of any temporary repairs or living arrangements
When filing a claim with your homeowners insurance, it is important to understand what your policy covers and what it does not. This will help you determine what details of temporary repairs or living arrangements you can submit for reimbursement.
Temporary Repairs
Homeowners insurance policies may not cover ensuing damage to your property if you have not taken reasonable steps to secure the property from subsequent damage. Therefore, it is important to make temporary repairs to prevent further damage. This could include covering damage to the roof, walls, doors, and windows with plastic sheeting or plywood. Your insurance company will reimburse you for all reasonable costs to protect your property, so be sure to save your receipts for any materials you purchase.
Temporary Living Arrangements
If your home is damaged and you need to make temporary living arrangements, your homeowners insurance may reimburse you for additional living expenses, such as hotels, car rentals, and other day-to-day expenses caused by having to temporarily relocate. This is known as Alternative Living Expense (ALE) coverage or "loss of use" coverage. It is typically included in a standard homeowners insurance policy.
To receive reimbursement for your temporary living expenses, be sure to keep detailed records and receipts. You will generally need to submit receipts and get reimbursed, rather than receiving ALE payments upfront. Keep in mind that ALE does not cover all costs of living elsewhere, only those costs above your normal expenses. For example, if you typically spend $600 on groceries per month but spend $1,300 on eating out while temporarily living in a hotel, ALE will cover the difference of $700, not the full $1,300. Additionally, ALE will not cover living expenses that your insurer considers excessive compared to your previous standard of living.
It is also important to note that homeowners insurance policies usually set limits on the time frame or dollar amount of ALE coverage. Therefore, it is crucial to understand the specifics of your policy and what is covered before submitting any claims for temporary living arrangements.
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Contractor suggestions and compliance
When it comes to contractor suggestions and compliance, there are several things to keep in mind as a homeowner. Firstly, it's important to understand that homeowners insurance policies do not operate within networks, and it is your right to choose the contractor who will carry out repairs or renovations on your property. Your insurance company may recommend a preferred contractor or provide you with a list of suggested contractors, but you are not obligated to select from their network.
However, if you decide to choose your own contractor, it is crucial to communicate this decision to your insurance company as early as possible. They may require approval of your chosen contractor before work can begin, and they may request documentation of the contractor's qualifications and experience, as well as insurance information. Reputable contractors should be licensed and insured, and they may also have a construction bond, which provides financial protection for homeowners if something is damaged or if the contractor does not meet the contract terms.
To avoid potential payment issues, it is recommended to establish a repair payment schedule with your contractor. This helps ensure transparency and allows you to look out for any red flags, such as a contractor requesting a large down payment. Typically, insurance companies will send payments directly to the contractor, which requires your authorization, or they may issue checks made out to both you and the contractor for joint sign-off.
Keep in mind that you can also engage a public adjuster, who is an insurance professional working exclusively for policyholders. Public adjusters can assist in evaluating property damage, preparing and negotiating insurance claims, and ensuring you receive the maximum payout your policy promises. They can also help you understand the scope of repairs and potential costs, especially if you're working with your own contractor.
Additionally, when filing a claim, be prepared to provide a list of lost or damaged items, as well as proof of ownership. Receipts or bills for high-value items can speed up the claim process and provide sufficient "proof of loss." Without this proof, your claim may be denied, depending on your insurance company and policy.
Finally, be cautious of contractors providing estimates for repairs. Insurance companies may try to low-ball their estimates, and contractors might inflate their quotes because it is an insurance claim. Understand your coverage and push for everything within that coverage to be replaced in your claim.
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Frequently asked questions
Before filing a claim, find out what your deductible is. If the damage is minor, you might decide to pay for the repairs yourself. If you believe the damage will cost more than your deductible to repair, or there is extensive damage, you may want to file a claim.
You will typically be asked to provide your name, contact information, policy number, type and date of loss, and a description of the loss and any injuries. If you have a home inventory, it may be useful to have this to hand.
If the work goes beyond restoring your property to its previous condition, you may have to pay the difference. If your house needs upgrades to meet current building codes, check your policy or with your agent to see if you have law and ordinance coverage.
