Taking photos or videotape of your home when you move in can help when filing claims.
Most people purchase homeowner insurance with the idea --- and hope --- that they'll never need to use it. Insurance often is purchased as a mortgage requirement, and the policy is filed away and forgotten. If you suffer damage, theft or injuries, you need to find your policy and get to work. Knowing your coverage and deductible details, determining your losses and promptly contacting the appropriate people can move your claim along with minimal delays.
Review Your Policy
Figure out if the damage and/or theft that's occurred is covered. Estimate your losses and compare the figure to your deductible. You may not want to file a claim if the loss doesn't exceed your deductible by a substantial amount, especially if you've made recent claims. J.D. Howard of the Insurance Consumer Advocate Network goes so far as to suggest the following: "To avoid unnecessary rate increases, it typically makes sense to pay home repair bills out of your own pocket if the cost is less than three times the size of the insurance policy's deductible." The lower your deductible, the more this approach makes sense.
Make Temporary Repairs
Immediately take care of necessary repairs to make your home livable or to avoid further damage. Covering your roof with tarp or boarding up windows are examples of immediate repairs, and the cost of materials should be reimbursable. Damage caused by not taking action may not be covered. Don't dispose of damaged goods. The insurance company's adjuster will want to inspect damage.
Itemize Damage or Losses
If you're fortunate, you have photographic or videotaped proof of any items that were stolen. Take photos or videotape of any damage to your home. Receipts of missing items also will help. If you take steps to document your home and possessions when you move in, your claims process will be much smoother. Make estimates of losses. Contact contractors to provide home-damage estimates. These estimates should be covered in your policy. Include medical records, bills and related prescription costs, which also should be covered by the liability portion of your policy. If a natural disaster caused damage, contact your agent and local government officials. Even if damage is due to non-covered causes, such as a flood, you may be able to file a claim for lodging while your home is being repaired.
File Police Report
If there is even a suspicion of theft or vandalism, call the police and file a report. Get a copy of the report. Remember that damaged or stolen household items are usually covered even if the loss occurred away from your property. Personal injuries, such as falls or dog bites, should be reported and probably will be covered by your policy, but your insurance company may not renew you, especially if your property was poorly maintained or if you lied about having a pet when purchasing your policy.
Contact Insurance Agent
Most policies impose time limits for filing, so contact your agent as quickly as possible. Don't call your agent simply to inquire about the possibility of filing a claim. All such contacts trigger a claims process by the company, and may negatively impact your rates or renewal status down the road. Know your policy terms before calling your agent. Ask pointed questions about coverage and timelines. Request that claims forms be sent to you.
Hiring an Adjuster
Your insurance company may send an adjuster to investigate a large claim, or may just advise you to submit a bill for repairs on a small claim (for instance, if your mailbox was vandalized). You may want to hire your own adjuster to look after your interests if damage is considerable. Be wary about signing any settlement papers on the spot if the adjuster offers to do so. Make sure that you're getting the claim amount to which you feel entitled and that there isn't pressure to sign a "final" settlement agreement. File your claims paperwork with the insurance company when you're satisfied with all inspections and repair estimates. You can appeal any denials.
Tags: your policy, your home, insurance company, your agent, your deductible, claims process
