Do One Thing: File a Home Insurance Claim (time: under 30 min.)
Whether it’s a leak in the basement, a tree that fell on your garage, or a tornado that leveled your living room, the process for filing a home insurance claim is pretty much the same. Here’s hoping you never have to do this—but if you do, here’s how it’s done.
This is for you: If there’s been a theft or damage to your home, or an injury to someone on your property, and you plan to file an insurance claim to cover your costs.
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Hands-on time: Less than half an hour for the actual claims-filing process. The hands-on time for gathering evidence and documentation and completing necessary repairs on your home will vary depending on the circumstances.
Total time: Depends on the incident and your insurance company. Insurance companies usually turn claims around within a week, with a check arriving within another week to a month. Repairs will depend on the extent of the damage.
Cost: There is no charge to file a home insurance claim. However, you’ll be responsible for your policy deductible (typically $500 to $1,000), and your insurance rates may go up in the future.
NOTE: If the amount of the claim is less than three times your deductible, experts generally recommend paying the costs out of pocket to prevent having to pay more for insurance in the future (or, if you file too many claims, to prevent the company from suspending your coverage). So if your deductible is $500 and repair costs will be about $1,000, you may want to just pay it yourself.
What you’ll need:
- A claims contact number for your home insurer
- A home inventory (if you have one) detailing all of your valuable possessions—you may need to provide proof of what you owned and how much it was worth.
Under all circumstances:
1. Keep a log of the insurance people you speak to—dates, times, names—and what they tell you.
2. If you have to send physical documents to your insurer, do it via certified mail. That way you’ll have proof that it was delivered.
3. No news isn’t necessarily good news. If you haven’t heard from your insurer in a while, follow up to make sure things are still proceeding.
What to do in case of theft:
1. Inform the police. Make a list of the stolen items and the damaged portion of the property and file a police complaint.
2. Take video or photographs of any damage.
3. Contact your insurance company and provide copies of the complaint and the list of what was taken.
4. The insurance representative should be able to guide you through the claims process. If the damage or loss is significant, they’ll send an adjustor to inspect things.
5. If you need to make temporary or immediate repairs (if the locks are broken on your door, for instance), ask your insurer for a list of companies approved to do the work. They may be able to bill your insurer directly. If not, keep all receipts for reimbursement.
What to do in case of damage to your property:
1. Seek medical attention for yourself, if necessary.
2. Contact your insurance company. The representative should be able to lead you through the process of making a claim.
3. If applicable, gather statements from witnesses, the police department or the fire department as evidence.
4. If the damage is extensive, you may want to consider hiring an independent public claims adjuster. That’s a person who will investigate your losses and negotiate with the insurance company on your behalf. You’ll pay a percentage or a fee for the service, but it may be worth it if you’re looking at a big bill. (And some insurance policies will cover that fee—read your policy or ask your insurer about it.) Ask your insurance agent, your acquaintances, or a lawyer if they can recommend someone.
5. If the damage is significant, the insurance company may send a claims adjuster to evaluate your claim.
6. If you need to make temporary or immediate repairs, ask your insurer for a list of companies approved to do the work. They may be able to bill your insurer directly. If not, keep all receipts for reimbursement.
7. If you need to stay elsewhere until repairs are made, your policy may cover some of your living expenses. (It’s called—aptly—Additional Living Expenses coverage.) Keep copies of hotel bills, temporary rentals, restaurant bills and other living expenses incurred while your home is being repaired or rebuilt.
8. You don’t have to agree to your insurer’s settlement offer if you feel it’s too low. Get an opinion from a local contractor, if you’re unsure.
What to do in case of injury:
1. Seek medical attention if necessary.
2. Keep hospital and other medical receipts so your insurance company can reimburse you appropriately.
3. If you’re being sued by someone else for an injury that happened on your property, contact your insurer immediately. If you wait too long, you run the risk of the company not covering your costs.
To learn more:
How to file an insurance claim—and win (MSN Money)
When NOT to File a Claim (MSN Money)
Did you do it? Tell us what worked or share other tips in the comments below.
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