How to File an Insurance Claim

You hope it will never happen, but when it does, it pays to be ready. Say that tree falls on your house, or the neighbor kid is playing with matches a little close to your garage; whatever the disaster, large or small, there are things you need to do quickly to minimize the damage. After taking whatever steps you can to prevent further damage to your house (e.g., covering the hole in the roof with tarps, putting that fire out!), you will need to file a claim.

A claim is a notification of damage by the insured to the insurance company for the purpose of being reimbursed. The company will in turn review the claim and then, if it’s approved, pay out money for repairs or replacement, according to the terms of the policy.

The Process of Filing Your Claim

First, call your insurance agent. Make sure you have your premium number close at hand because that will be the agent’s first question to you.

Inspect the damage. Chances are you will see the direct damage immediately, but there might be hidden damages too. For example, if a tree fell on your roof, check to see if it damaged any personal property such as cars, garden furniture, etc. Walk through the house to assess each room, and also walk around the exterior to see what damage may have been done to the outside walls. Make a list of all the damage you find, and include details such as type of siding or roofing.

Take pictures of the damage. You will need to give a detailed description to your agent, but it’s a good idea to have some pictures as well. They really do take the place of a thousand words!

Determine livability. Your agent will immediately ask you if you can continue to live in the house. If not, depending on your policy, you could be eligible for a living allowance until the damage is repaired. Save any living expense receipts.

Talk to your claim representative. At some point after you report the damage, you will be assigned a claim rep. He or she will give you a claim number that you will refer to in any future communication. If the damage is severe, the claim representative will send an adjuster to see it firsthand. The adjuster will determine repair or replacement costs.

Find a contractor. You can get your own contractor to give you an estimate of damages too; if the damage is minimal, the claim rep may just agree with the estimate and process your claim without an inspection. But do not go ahead and have the work done until your claim rep gives you the okay.

Keep all receipts. When you have repair work done, be sure to keep the receipts. The way insurance companies reimburse you depends on the company and the amount of damage. Either the adjuster will reimburse you for approved bills from your contractors directly, or he may set up an account from which they pay the contractors themselves.

If you disagree with your adjuster’s estimate of the repair costs, you can hire your own insurance appraiser or insurance attorney to represent you.

Liability Claims

For liability coverage, you should make a claim to your insurance company as soon as a third party asserts that you are at fault for something subject to your coverage. Your policy will typically state a required method and time frame for reporting covered liability claims. Your insurance company needs to know about these claims as soon as possible, so you (and it) do not lose out on any defenses against the claim. If you intend to turn the claim over to you insurer, you should be sure not to admit any responsibility on your own. 

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