Homeowner’s Insurance Claims 101: Everything You Need to Know

The insurance world can be perplexing, especially knowing how and when to file a homeowner’s insurance claim. It’s important to have homeowner’s insurance in case of property damage, stolen belongings, or an unexpected disaster. Just because something happens, it doesn’t mean you should file a claim; it all depends on the severity of the situation. Your premium might go up when you file a claim, especially if you have multiple claims. This guide will discuss the ins and outs of when and how to file a claim, so you are ready and prepared.

How to File a Claim:

When a disaster occurs, like theft, flooding, or a fire, there are several steps to ensure your claim is filed correctly and all your bases are covered. The following steps are:

  1. If someone broke into your home and stole valuable items, the first thing to do is file a police report. Take note of the person you spoke with for use while filing your claim. 
  2. The next is to call your insurance company. If you are going to file a claim, then it’s .best to take care of it as soon as you can. Remember that some homeowners’ policies require you to call by a specific time after the incident. Reaching out to your insurance company sooner than later is best to fix the damage.
  3. Make necessary repairs right away to avoid further damage. Make sure to take before pictures, document all repairs, and keep your receipts for reimbursements. In addition, it’s good to get estimates first before making the repairs to ensure there are enough funds to cover the repairs. This may prevent you from having to pay out of pocket. Pay attention to your policy and the amount that is covered.
  4. Make a list of damaged property. The best way to do this is to write everything down and take pictures and videos of all the damage or document missing items. Be sure to have receipts of all valuables and other belongings to show proof that you had those items in your home.

 To File a Claim or Not to File a Claim?

To File a claim or not to file a claim? Well, it all depends on the situation. It might be best to handle minor circumstances on your own. When you file an insurance claim, it can affect your premium. Just because you have homeowner’s insurance doesn’t mean you should file a claim every time there’s damage to your home. You want to decipher what’s important and what’s not. Standard homeowner’s insurance doesn’t cover everything. You’ll need a separate policy for things such as earthquakes or flooding. Knowing when to file a claim will save you money in the long run from the insurance rate increase. Think before you claim.

When You Should and Should Not File a Claim

Before you file a claim, it’s best to take a moment to decide if it’s the right choice to avoid a premium increase. There are different factors to consider first. Suppose the repairs to your home or replacement costs are close to your deductible or less. It might be wise to pay out of pocket for the repairs without filing a claim. When you file a claim, your claim is reported to the Comprehensive Loss Underwriting Exchange (CLUE). All carriers review this database, which means a possible rate increase or policy cancellation can occur. For minor repairs like a cracked door or one broken window might not be worth filing a claim. You want to file a claim for more significant damages.

When to File a Claim

If it’s your first time filing a claim and depending on the situation, it might be the right decision to file a homeowner’s insurance claim. Remember that just because you file a claim doesn’t mean you’ll have an instant rate increase or other issues with your policy. There are a lot of factors that are considered before this happens. Before filing a claim, make sure you understand your homeowner’s insurance policy.

 Here are some reasons to file a claim:

  1. File a claim if the cost of the damages or repairs is more than you can handle.
  2. File a claim if you don’t have any recent homeowner’s insurance claims.

What is the Home Insurance Claim Time Limit?

Insurance companies set a time limit to file a claim from 30 days to a year, depending on the insurance company. If you file a homeowner’s insurance claim, it’s best to do it within that time limit. Talk with your broker, or read your policy, so you don’t miss the date. Every insurance company is different and has different due dates.

The Rue Crew Claim Process

Filing an insurance claim is never fun, so we make it as simple as possible. All you have to do is complete our online form and provide the required information. If you have questions or concerns, you can give us a call. We are here to help you move forward and give you the guidance you need during your claim process. You are not alone! We are here to take some of the stress away.

Alex Rue