Home Insurance Claims Explained, And Ways These Claims Can Affect Your Home Insurance Costs

Almost every home owner has some type of home insurance, even if it is a minimal coverage amount. If you have a mortgage loan outstanding for the home, the mortgage lender usually requires this insurance coverage, and even home owners who do not owe a mortgage still should have this vital coverage. Home insurance gives you financial protection in the event that a covered claim arises. Most people never have to file a claim with their home insurance company, but unfortunately it does occur. The claims process can be very confusing, and there are some simple steps you can take to make the process easier and help you resolve your claim quickly. The first step is to always notify your home insurance carrier as soon as possible if a possible claim happens. If there is damage to your home, possessions are stolen, or someone is injured at your house the company needs to know immediately to start the claims process.

If you need emergency repairs because your house can not be inhabited until repairs are made, contact your home insurance provider to get a list of authorized companies to do these repairs. It may be possible at times to even have the repair business bill the home insurance company directly. Make sure you document every aspect of the damage. Take pictures or video of the damaged areas. Write down exactly what happened. Try to find receipts for any damaged or missing items to show their worth. Get copies of all reports, from witnesses, police, firefighters, and others. All of this documentation should be made available to the adjuster from your home insurance company to help speed up the claims process and get a fair settlement.

Make sure to document all contact that you have with your home insurance company regarding a claim. Make sure you write down the names and titles, as well as contact information, for every single person who you discuss your claim with. This will protect you in case there is a dispute or problem in the future. Make sure you are there when the home insurance adjuster comes to inspect and assess the damage. Point out any damage or claim issues that the adjuster has not noticed or commented on. Take notes about any comments, actions, or responses the adjuster gives. Make sure that you agree with the home insurance company about the fair amount of the settlement before you accept it. If you disagree with the settlement amount, it may be a good idea to have two or three independent contractors give you a detailed estimate. This step can help if you have to take your claim to court.

Every time you file a claim, you take a big risk of having your home insurance rates increasing, sometimes dramatically. You can save on this insurance if you do not file claims unless absolutely necessary. If the amount to repair the damage or replace possessions is less than or equal to your deductible, the home insurance company will not pay until you reach your deductible limit. This means a claim should not even be filed. Pay for the items and repairs out of pocket, and you will save a bundle on your home insurance policy.