Consider the value of a claim
Insurance companies generally consider your claims history when deciding to continue covering you or adjusting your premiums.
Before you file a claim, make sure the claim is worthwhile. For example, if the repairs cost only slightly more than your deductible, you may want to consider not turning in a claim and just pay for the repair yourself.
How to file a claim
Follow these tips when you file a claim to ensure a smooth, timely process:
- Contact your agent or company. Review your policy with them and ask what's covered.
- You can tell the insurance representative you do not want to file a claim and just want to know if a potential loss is covered by your policy. If the loss is not covered, you do not want a filed claim on your record.
- Ask what information they need to process your claim. Provide that information promptly, including contact information, if you cannot live in the home.
- If the loss is due to a crime, such as a burglary, notify the police.
- Be ready to provide receipts, photos, etc. to prove your loss.
- Keep copies of everything.
Your rights when you file a claim
As a policyholder, you're entitled to:
- A clear explanation of what's covered.
- An itemized statement outlining how the company will pay your claim.
- A prompt response from the insurance company.
- Timely payments and a claim decision.
- An appraisal if you disagree with the amount of your loss.
- You can work with the adjuster your insurance company sends or you can hire a public adjuster (a licensed person who works on your behalf to appraise and negotiate your property insurance claim).
What to expect from your insurer after you file a claim
Your insurance company is not required to send an adjuster to inspect your home. The company may send out an adjuster, contractor or other professional to inspect the damage to your home. Your insurer has 30 days from the date you filed the claim to inspect the damage to your home.
After the company determines the damage is covered by your policy, the discussion on who you'd like to do the work starts. You do have the right to select your own contractor to complete the work on your home. Your insurance company may recommend contractors who can complete the repairs for the estimate. However, the company is not required to provide you with a list of contractors.
Your insurance company is responsible for issuing payment for the repairs to your home that are covered by the insurance policy. It’s not responsible for the availability of contractors, delays in repairs by contractors or the availability of parts and materials needed to make repairs.
Hiring a general contractor for your claim
Once you file a homeowner claim, it's important you get a contractor who meets your standards and the requirements of your insurance company. Your company may suggest a list of contractors or "preferred providers" it's worked with before. However, you have the right to select your contractor. Don't get stuck paying additional costs.
Ask about a guarantee
Typically, contractors guarantee their work for a certain period of time, and if needed, will come back and make repairs at no additional charge. If you use a contractor the insurance company chooses, then your insurer should guarantee their work.
No matter who you choose, get all guarantees in writing.
Be aware of assignment of benefit requests
If your contractor asks you to sign an “assignment of benefit” be aware this could effect your rights. This form could allow the contractor to negotiate, make decisions and settle the claim directly with the insurance company - without your approval. To understand your rights, talk to your agent or company before you sign this form.
Upgrading your home
During the repair work, if your contractor suggests an upgrade, make sure you understand your insurance coverage before you OK the work.
If the work goes beyond restoring the 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. It provides you with financial protection against higher repair and replacement costs due to updated building codes.