Guide to filing homeowners insurance claims

Filing a homeowners insurance claim is what you have an insurance policy for, and as a homeowner you have rights when filing a claim. These rights include access to both your insurance claims report, and your insurance policy if it becomes lost. Insured homeowners also have a right to have their claims addressed, and a right to dispute a claim if it is denied. There are also several considerations and responsibilities an insured homeowner should keep in mind to benefit from, and properly file a homeowners insurance claim.

• Burden of proof and documentation

Documentation is essential when filing a homeowners insurance claim and demonstrating evidence of a claim’s accuracy. This includes asset inventories, police report, medical records, repair receipts, testimonials and insurance journal entries. Not all these may be required depending on the insurance claim, however they can help with expediting or processing the claim effectively.

• Insurance claim forms

Homeowners insurance claim forms are provided by your insurance company or agent. Filling out these forms correctly, clearly and truthfully is necessary. If you have questions call the insurance company and speak with an insurance claims representative. After the forms are submitted an insurance adjustor may investigate the damage or loss in person in order to assess evidence. Following this either the claim is approved with a proposed settlement amount or denied.

• Claims disputes

To dispute an insurance claim first ask for the denial or disputed compensation on paper so you can more appropriately address the denial in your dispute. Create a clear and logical reason or set of reasons why your claim should be approved. Your policy coverage, changes to state laws, inaccurate assessment, or misinterpreted circumstances are examples of such reasons. If your homeowners insurance policy allows arbitration you may not have to use the services of a lawyer if the claim is denied after your first dispute. In other cases, the assistance of licensed appraisers, state consumer affairs representatives or private adjustors or attorneys may be utilized.

• Payment, replacement and repair

If the insurance claim is approved, a payment will be sent to you and in some cases to your mortgage escrow account manager. Payment amount will depend on your coverage percentage allowance and terms, in addition to assessed cost and type of damage i.e. structural damage, property loss or bodily injury. For example, if coverage allows only 80% of Actual Cash Value (ACV), the full replacement or reimbursement amount won’t be paid. In the case of structural damage, payment is sent either soon after the approval and/or, afterward, but not necessarily before damages to a home are repaired.

• Multiple claims and claim type

Too many minor homeowners insurance claims can increase an insured homeowner’s risk profile. Also,  there’s a good chance it will appear on your insurance ‘credit report’. A widely used claims database used by home insurers is called the Comprehensive Loss Underwriting Exchange (CLUE). To make sure a claim has been filed correctly, a CLUE report can be obtained under the Fair and Accurate Credit Transaction Act of 2003.

A.W. Berry -HomeownersInsurance.org Expert A.W. Berry is a published personal finance writer with an interest in all kinds of money matters. His professional background in finance, marketing and sales directs his reporting to pertinent local issues.