Steps to take before and after a loss or damage to your home and belongings.
Homeowners insurance is designed to mitigate the financial hit when there’s theft or damage to you your home or belongings. In the midst of loss, though, it can be difficult to determine what to do next. Be prepared ahead of time with these tips on making a claim.
BEFORE A LOSS
Understand your policy
Take time now to review your homeowners insurance policy to make sure you understand the details. Specifically, pay attention to:
- Coverage limits
- Exclusions
- Conditions
Insurance policies are lengthy documents that can be difficult to comprehend if you’re not familiar with the language they use. If after reviewing your policy you have questions, reach out to your insurance agent. Ask them to explain the policy details.
After reviewing your policy, you may find gaps between what you thought was covered and what is actually covered. Work with your agent to adjust the policy. For example, you might want to add a rider for high-value jewelry or water back-up coverage if you have a sump pump. Another thing you might need to consider is flood coverage.
Inventory your belongings now
A valuable thing to have when making a homeowners insurance claim is an inventory of your home and belongings. Pictures and receipts provide solid documentation.
Digital copies of receipts and photos kept in cloud storage will be accessible even if hard copies get destroyed.
Take photos of your home’s interior and exterior as well as your belongings. Get pictures from multiple angles. Zoom in on model and serial numbers. As you purchase items, update the inventory.
Alternatively, you can create a video and narrate details about specific items. For example, as you record your home office you might call out assets like, “MacBook Pro, 16-inch screen purchased in 2021.” You can break up the task by videoing one room at a time.
At the very least, update your inventory annually. Record significant purchases and keep copies of receipts for major purchases.
Keep insurer contact info handy
Another helpful thing to do before you have a claim is to make sure your insurer’s contact info is handy. Add their number to your phone’s contact list. While this information may be in an app, in a power outage situation you might not have internet access when you need to get in touch with your insurer.
AFTER A LOSS
Contact your insurer before starting cleanup
In cases of emergencies like storm damage, fire and flood, the most important thing is safety. Do what is necessary to keep yourself and loved ones safe and prevent further damage.
Once immediate danger has passed, it may be tempting to start clean-up right away. However, your first step should be to contact your insurer who will assign an adjustor to your claim. Your adjustor will tell you the best way to document damage and losses.
Adjustors can be very helpful in helping you understand the claims process and even identifying resources for restoration. Keep in in mind, though, the insurer does not have a fiduciary duty to you, the insured party. The adjustor employed by the insurer will act in the insurer’s best interest. A key duty of adjustors is to assess damages and determine how much, if any funds, should be paid on the claim according to the policy that’s in place.
If you don’t have an inventory
If you suffer a loss and don’t have pre-damage inventory, check old photo feeds for pics taken around your home. You may be able to identify possessions in the background that were lost or stolen. This approach isn’t ideal because it doesn’t provide a comprehensive inventory, but it can help.
Document everything
Expenses related to restoring or recovering your belongings are typically covered by homeowners insurance, but you need to have documentation.
Take pictures and/or video of the damage as soon as it’s safe to do so.
Keep receipts for any cleaning supplies and equipment used in clean-up. For example, if you rented fans to dry out walls damaged by a burst pipe, that expense will likely be reimbursable.
If your home is destroyed, inform your lender
The mortgage must still be paid even if a home is destroyed or is unlivable. Tell your lender what happened. Depending on the cause of the loss and other factors, the lender may agree to temporarily lower or suspend payments. This can help avoid late fees or foreclosure.
The best time to prepare for an insurance claim is before you experience a loss. Make it a priority to review your policy, update your inventory, and save your insurer’s contact info on your phone.
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