- If you have damage to your home or personal belongings, it's important to file a claim immediately.
- Failure to file a claim in a timely manner can result in denial of coverage.
- Many homeowners insurance companies have digital apps that allow faster claims processing.
Homeowners insurance covers your property and belongings from damage caused by fire, storms, theft, and other specific types of events referred to as insurance perils. If you need to make a claim with your insurer, it's important to file it in a timely manner and document the damage, as failure to timely notify your homeowners insurance could result in a denial of your claim.
Here's everything you need to know about home insurance claims and how to file them.
When Should You File a Homeowners Insurance Claim?
Experiencing damage to your property or personal belongings doesn't automatically necessitate filing a claim with your homeowners insurance, especially since filing a series of claims within a short time frame can lead to higher insurance rates.
In general, you should only file a claim for significant damage or a complete loss and if the cost of your repair far exceeds your deductible.
Types of Damage Covered by Homeowners Insurance
Not all types of damages are covered by homeowners insurance. It’d only make sense to file a claim if the damage to your home was caused by a covered peril, including the following:
- Fire
- Water
- Theft
- Vandalism
- Hail, wind, lightning*
- Damage by a falling tree
Situations Where Filing a Claim May Not Be Worth It
- The loss exceeds your policy deductible. Your insurance will not kick in until your deductible is met, so filing a claim worth less than your deductible may not be worth it since it'll cancel out most of your payout. Plus, your monthly payments may increase after filing a claim.
- The damage is small. Homeowners insurance is designed to cover significant and sometimes catastrophic losses, so if an incident does not cause an expense, filing a claim is unnecessary.
- You’ve filed multiple claims recently. If you filed a claim recently, you may want to think twice before filing another one. This is because multiple claims within a relatively short period could result in higher premiums since insurers may see you as a higher risk.
Understanding Your Policy Limits and Exclusions
You should only file a claim if the damage was caused by a covered peril, such as fire or hurricane wind damage. Check your policy documents to figure out what's covered and what's not. Damages that typically aren’t covered by homeowners insurance include maintenance and repair, floods, and earthquakes.
How to File a Homeowners Insurance Claim
If you experience loss or damage due to an insurance peril, take the following steps to submit an insurance claim:
Step 1: Assess the Damage and Document Everything
Document the damage with photographs and videos. Additionally, note the date, time, and other available information related to the incident, such as the item's model and serial number.
Step 2: Contact Your Insurance Provider
Next, reach out to your insurance company by calling the claims number on your policy or filing a claim online. Many carriers have digital apps to file claims and upload pictures of damage for faster processing.
Step 3: Meet with an Insurance Adjuster
Once you've submitted your claims form, your insurance company will assign an insurance adjuster to interview you and inspect the damage in person. Make sure to have all your documentation ready before the inspection, such as proof of ownership and any personal belongings affected, to prevent delays.
Step 4: Get Repair Estimates and Submit Documentation
After the adjuster's visit, it’s time to gather quotes from licensed contractors for the necessary repairs. Try to get at least two to three estimates to ensure you're getting a good price. Along with the estimates, be sure to submit any additional documentation your insurer requests. This could include receipts, photos of the damage, or a list of affected items.
Step 5: Receive the Claim Payout and Start Repairs
Once your claim is approved and the amount is finalized, you'll receive your payout, which typically comes in the form of a check. You can then use this money to replace your damaged belongings and pay for the cost of repairs.
What to Know About Your Homeowners Insurance Deductible
Filing a home insurance claim will typically only make financial sense if the loss exceeds your policy deductible. A deductible is subtracted or deducted from your claim payout. Your deductible can be a dollar amount or a percentage. The III says the standard homeowners deductible ranges from $500 to $1,000.
How Your Deductible Affects Your Claim Payout
Your deductible applies every time you file a claim and only to property damage (dwelling and personal property coverage), not personal liability coverage. For example, if your deductible is $1,000 and your insurer approves a claim for $5,000 in covered damages, you’d receive a payout of $4,000.
When a High Deductible Can Save You Money
Since the deductible is subtracted from your final payout, choosing a higher deductible can lower your monthly premiums. But it also means you’ll pay more upfront when filing a claim. That said, a high deductible could make financial sense if you rarely file claims, own a new home, or live in a lower-risk area.
Choosing the Right Deductible for Your Needs
The right deductible amount to choose will depend on your financial situation, risk tolerance, and how often you’re likely to file a claim. A lower deductible means you’ll pay less out of pocket after a covered loss, but your insurance premiums will typically be higher. On the other hand, a higher deductible can lower your premium, but you'll need to have enough savings to cover that amount in case of a claim. So if you live in an area prone to severe weather or other risks, you may want to choose a lower deductible just in case.
Do Homeowners Insurance Claims Increase Your Premium?
Yes, homeowners insurance claims will keep track of your claims history and factor that into your premiums. Insurers determine premiums by evaluating your risk and the chances that you'll file a claim. This means after you've filed a claim, they’ll view you as much more likely to do so again and adjust your premiums accordingly.
How Claims Impact Your Insurance Rates
"Home insurance premiums are calculated based on the likelihood of a claim taking place," says Ted Olsen, managing director at Goosehead Insurance, an insurance shopping platform.
You can expect a rate increase of 17% to 29% for a single claim, and up to a 60% rate increase for a second claim, according to data from Insurance.com.
The Types of Claims That Raise Premiums the Most
The impact on your premiums will vary based on the type of claim you file. For instance, a single claim for damage from a fire would raise your premiums by 29%, while a single weather-related claim would only increase your premiums by 17%, according to Insurance.com.
And in general, the more severe or costly the claim, the greater the increase in your premiums will be. For instance, a $50,000 theft claim will impact your premium significantly compared to a $1,000 broken window loss, says Olsen.
Typically, fire claims increase your premiums the most, while weather claims increase your premiums the least. Here’s a look at the average increase by type of claim:
| Type of claim | First claim | Second claim |
| Fire | 29% | 60% |
| Theft | 27% | 55% |
| Liability | 25% | 52% |
| Water | 25% | 50% |
| Medical | 18% | 34% |
| Weather | 17% | 29% |
Source: Insurance.com
How Many Claims Are Too Many?
There’s no hard-and-fast rule for how many claims you can file, but filing too often can come back to bite you. Insurance is meant for significant events, not every little repair. If you submit multiple claims within a few years, your insurer might start to see you as a higher risk. That could mean higher premiums or worse, they might not renew your home insurance policy at all.
What to Expect During the Homeowners Insurance Claims Process
Filing a homeowners insurance claim can feel confusing if it’s your first time. Here’s what you can expect after submitting a claim.
How Long Does It Take to Process a Claim?
The time it takes to process home insurance claims depends on the insurer and the complexity of the claim, but it can range from a few days to several weeks.
What Happens If Your Claim Is Denied?
If your home insurance claim is denied, that means your insurer is refusing to pay your claim. What you can do in this case is contact your insurance company to find out why, then consider filing an appeal. If your claim was denied due to insufficient information, ask your insurer about what's missing and what you can do to improve your case.
Tips for Speeding Up the Claims Process
To avoid any delays in the claims process, make sure to report the damage to your insurer as soon as possible and submit a well-documented claim with photos, videos, and receipts. Make sure to also keep a record of all communication with your insurer and follow up regularly to check on the status.
Common Mistakes to Avoid When Filing a Homeowners Insurance Claim
Avoid making these mistakes to make sure your claims process goes smoothly.
Not Documenting the Damage Properly
Skipping documentation or doing it halfway can slow down or hurt your claim. So make sure to be thorough, and take clear photos and videos of all damage. You’ll also want to keep receipts or proof of ownership for damaged items.
Accepting the First Settlement Offer Without Review
It might be tempting to take the first offer and move on, especially when you just want to get repairs started, but don’t rush. Review the settlement to make sure it covers everything you lost. If the payout seems too low, you can negotiate or ask for a second inspection.
Failing to Understand Policy Exclusions
Not everything is covered under your homeowners insurance, and you don’t want to wait until after you file to find that out. Take time to review your policy so you know what’s included and what’s not. For example, damage from flooding, earthquakes, or gradual wear and tear is often excluded.
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FAQs
How do I file a homeowners insurance claim?
To file a homeowners insurance claim, start by documenting the damage. Then, you can contact your insurer, meet with an adjuster, submit repair estimates, and wait for your payout.
Will my homeowners insurance rates go up if I file a claim?
Whether your homeowners insurance rates will go up if you file a claim depends on the claim type and frequency. One small claim may not affect your rate, but multiple claims can lead to higher premiums.
Should I file a homeowners insurance claim/
You should file a homeowners insurance claim if your expected costs of repair are higher than your policy deductible.
How long does a homeowners insurance claim take?
Simple homeowners insurance claims can be processed in days, while complex claims (like total home loss) may take weeks or months.
What if my homeowners insurance claim is denied?
If your homeowners insurance claim is denied, review the denial reasons, gather more evidence, and appeal the decision. You can also seek legal advice if necessary.
