Common Mistakes Made on Home Insurance Claims

How do home insurance claims work?

How long does it take to get homeowners insurance?

Does homeowner insurance go up after a claim?

Can you keep insurance claim money?

Can you cancel a homeowners insurance claim?

How many claims before home insurance cancels?

How to get the most out of your home insurance claim?

What happens when you withdraw an insurance claim?

How to maximize water damage claim?

What happens after the home insurance adjuster comes out?

How long does it take to get a homeowners insurance claim check?

How to cash insurance check without mortgage company?

How long do you have to file a homeowners insurance claim?

How long do homeowners insurance claims stay on your record?

How do home insurance claims work?

Understanding how home insurance claims work can be quite easy if you understand the different steps in the process of not only filing your claim but also understanding how your claim is then handled by your insurance company in accordance with your home insurance policy. 

1. Filing a claim

The first step in any insurance claim is to have the individual who is the holder of the insurance policy file a claim for the property damage. This is one of the most important steps as it will ensure that your insurance company is aware that there have been damages incurred on your property. 

2. Adjuster is assigned

Once you have submitted your claim, an insurance adjuster will need to come for a home inspection after the insurance claim to look at the property damage. This is the way in which your insurance company can see the exact extent of the damage and they can evaluate what the cost will be for fixing what was destroyed. The adjuster will not only inspect the damage, and assess the extent of the damage on your property, but they will also be the ones to determine what type of coverage you will receive for this damage. Essentially, they will be the ones to determine how much money you will need to fix whatever it was that was damaged on your property. 

3. Claim is resolved

Once the adjuster has determined the cost of your claim, your insurance company will be paying you the funds necessary to fix the damage on your property. These funds can be paid either through Direct deposit, electronic check, or mailed check. The way in which these funds will be sent to you is something that you will need to discuss with your insurance company. 

4. Restorations 

Once you have received the funds from your insurance claim you can use them to refurbish or repair the parts of your property that were damaged. While the insurance company may handle the funds, it will be your job to find the appropriate contractors or workers to complete the refurbishment process or to start replacing the things that were damaged. In the case of replacement items, many insurance companies may require that you replace the items with your own money and then submit your receipts, so it is always best to check your insurance policy to determine how the insurance company will handle the process of providing you with the required funds. [1]

How long does it take to get homeowners insurance?

Getting homeowners insurance is not usually a lengthy process. If you are looking to get new home insurance then you will be happy to know that most insurance companies are able to provide you with a quote for the insurance coverage needs of your home within minutes. Typically, once you have made the decision to proceed with a company and get homeowners insurance with them, you should be able to get your home insurance within one to three days. In some cases, it may only take a few hours until the entire process is finalized, so in general, it is not a lengthy process. [2]

Does homeowner insurance go up after a claim?

Many homeowners may have noticed that their homeowner’s insurance has gone up after a claim has been submitted. The reason for this may be surprising to some, but in fact, it makes sense based on most of the evidence that insurance companies have in their hands. Essentially, people who have filed an insurance claim before are statistically far more likely to make another claim. In order to avoid the habitual usage of the claim system, insurance companies will often put up the home insurance rates, in an effort to deter homeowners from filing repeated homeowners’ insurance claims. [3]

Can you keep insurance claim money?

In most cases the money that you have gotten during an insurance claim is yours. So long as you did not lie or deliberately try to make the insurance company pay more than what was required to fix the damages you should be able to keep any remaining amount. This may be something that is stated in your home insurance policy, so if you are uncertain about keeping the leftover insurance claim funds after you have finished with the restorations of the damages you can always check the insurance policy that you signed to see if there are any speculations regarding this topic. [4]

Can you cancel a homeowners insurance claim?

You can always cancel or withdraw a homeowners insurance claim by calling your representative. There are many reasons why you may wish to cancel an insurance claim, but one of the most common ones is realizing after assessing the damage, that repair costs are not large and as such, you may be able to pay the amount of your own. This may be preferable at times if you do not want your insurance rates to increase. This is because in most cases homeowners’ insurance claims may lead to higher insurance rates.

How many claims before home insurance is canceled?

In most home insurance policies, you will find that there is no set limit for the number of insurance claims that you can file within a given period of time. That being set, if you find more than two claims over the course of five years, it is likely that your home insurance company will choose to introduce an increase in the home insurance rates that you are paying. If you start filing numerous claims during a short period of time, the claims will cause speculations and as such, your home insurance company may choose to cancel your home insurance policy as they find that the number of homeowners insurance claims that you are filing is unreasonable. This is why it is important that whenever you file a claim you take into account the potential repercussions that filing the claim may cause. [5]

How to get the most out of your home insurance claim?

Getting the most out of your home insurance claim may need to require special attention and evidence from your end. Still, especially in cases where the damage was large, you do not want to be in a position of receiving fewer funds than what is required. This is why taking full advantage of your homeowner’s claim is about being prepared. 

• Read your insurance policy

Many people may sign on with a particular insurance policy and never take the time to read what exactly is covered by their insurance policy and of course, the extent to which their insurance policy covers them. If you are looking to maximize what you can get from your homeowner’s insurance claim, you will need to be aware of exactly what it is that is covered under your policy. 

• Documentation

One of the best ways of ensuring that you will receive the funds needed from your insurance policy is ensuring that you have properly documented the full extent of the damage. This could include photos and video, as well as potentially hiring a private adjuster to receive an assessment of what the cost of covering the damage will be. All of these can help you better negotiate your position and the reasons why you filed the homeowner’s insurance claim. 

• Make any pressing repairs

If you have repairs that need to be completed in a timely manner, then you should go ahead and proceed with the completion of those repairs. In most cases, your insurance company will be able to reimburse you for those so long as you have kept the receipts. Making the repairs ahead of time will also indicate that the restoration work needed was a pressing matter and not something that you could wait on the insurance company for. 

• Prepare for a fight

Sometimes, you may be called to fight a bit of a battle to receive the insurance amount that you are rightfully entitled to. This is because to an extent, insurance companies are trying to save money, but that should not stop you from fighting for your insurance claim. In many cases, showing determination and fighting for what you need may result in you receiving the claim amount that you requested. [6]

What happens when you withdraw an insurance claim?

Withdrawing or canceling a claim can be a great way of ensuring that you are not filing too many claims at once. Still, it is important to note that even canceled claims will remain a part of your claim’s history. Most home insurance companies will realize that the payout for your claim was 0 and as such that the claim was canceled and will normally not choose to increase the homeowner’s rates, but that is simply common practice. In reality, home insurance companies, may look at your claim filing history and choose to increase your home insurance rates. [7]

How to maximize water damage claims?

Maximizing a water damage claim can take a number of different things, this is why when you are filing your claim it is important to remember the following tips. 

1. Speed is your friend, file the claim as quickly as possible

2. Document all damage and the extent of the damage

3. Remove possessions from the damaged areas

4. Use a public adjuster to get an assessment of the cost of the damage

5. If the problems caused by the damage are not imminent, don’t start making restorations until your claim has been accepted. [8]

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What happens after the home insurance adjuster comes out?

After the home insurance adjuster has inspected the damage, they will file a report to the insurance company. Once the insurance company has received the report, they will be able to issue you a settlement for the homeowner’s insurance claim that you filed. [9]

How long does it take to get a homeowners insurance claim check?

The time that it will take to receive the insurance claim check will depend on the state that you are in. Usually, the process takes between 10 and 30 days, but every state has different laws regarding the timeframe for acknowledging that you have received the check and the timeframe in which you can accept it. [10]

How to cash insurance checks without a mortgage company?

If you have a mortgage on the property in question, you might find that the check is not made to you. If that is the case you will need to directly contact your back so as to get information on the way in which you can get the check endorsed and cashed out. Depending on your mortgage company that process may be different. [11]

How long do you have to file a homeowners insurance claim?

The time that you have to file a homeowners insurance claim may vary depending on the state that you are in. In most states, the homeowner has one year to file a claim, while in other states you may find that you have less or more time. If you are looking to file a claim it is always best to check the laws for filing claims in your state as well as your insurance policy to ensure that you are filing everything on time. [12]

How long do homeowners insurance claims stay on your record?

Typically, homeowners insurance claims will stay on your record for 5 to 7 years. Having filed many insurance claims during that timeframe may result in you having a harder time finding an insurance company that is willing to take you on. It could also lead to higher insurance rate payments. [13]

Conclusion

Filing a homeowners insurance claim can oftentimes be a necessity if the damage is big. But, in cases where the damage to the house is manageable, you may be able to withdraw or cancel your claims. In any case, filing a claim will remain on your record for a few years and could affect you if you tried to get a new lower-rate insurance policy.

  [1] https://www.kin.com/faq/how-are-home-insurance-claims-paid and https://www.iii.org/article/understanding-the-insurance-claims-payment-process 

[2] https://www.travelers.com/resources/home/insuring/do-i-need-homeowners-insurance-and-when-should-i-buy-it 

[3] https://www.bankrate.com/insurance/homeowners-insurance/does-homeowners-insurance-go-up-after-a-claim/ 

[4] https://www.coverage.com/insurance/home/home-insurance-claims/ 

[5] https://www.fallsinsurance.com/blog/how-many-home-insurance-claims-is-too-many.aspx 

[6] https://www.lanierlawfirm.com/law-firm-news/home-insurance-claims.htm 

[7] https://insurify.com/blog/home-insurance/cancel-a-home-insurance-claim/

[8] https://www.insuranceclaimlawyerblog.com/how-to-maximize-recovery-on-your-water-damage-claim/ and https://clovered.com/water-damage-insurance-claim-tips/ 

[9] https://www.consumerfinance.gov/ask-cfpb/what-should-i-consider-when-dealing-with-an-insurance-adjuster-en-1523/ 

[10] https://www.insurance.com/home-and-renters-insurance/coverage/how-long-does-an-insurer-have-to-pay-my-claim.aspx and https://www.iii.org/article/understanding-the-insurance-claims-payment-process 

[11] https://www.dicklawfirm.com/Blog/2021/September/How-to-cash-insurance-check-without-mortgage-com.aspx 

[12] https://www.vosslawfirm.com/library/time-limits-for-filing-a-property-damage-claim.cfm 

[13] https://www.kin.com/faq/insurance-claims-history