Step 1: Document Immediately
As soon as it's safe, take photos and videos of all damage before making any repairs (beyond emergency measures to prevent further damage, like tarping a roof leak). This documentation is critical evidence for your claim and helps prevent disputes about the extent of damage later.
Step 2: Prevent Further Damage
Most policies require you to take reasonable steps to prevent additional damage after an incident (like covering a broken window or shutting off water after a pipe burst). Keep receipts for any emergency repair materials, since these are typically reimbursable as part of your claim.
Step 3: Contact Your Insurer Promptly
Report the claim as soon as reasonably possible — most policies have specific reporting timelines, and delays can complicate the claims process or even affect coverage in some cases.
Step 4: The Adjuster's Inspection
Your insurer will typically send an adjuster (either their own employee or an independent adjuster) to inspect the damage in person. Be present during this inspection if possible, point out all damage (including less obvious issues), and ask questions about anything you don't understand in their assessment.
Step 5: Understanding the Settlement Offer
Claims are typically settled based on either:
- Replacement Cost Value (RCV): The cost to replace damaged items with new ones of similar kind and quality, without deducting for depreciation.
- Actual Cash Value (ACV): Replacement cost minus depreciation — meaning older items receive a lower payout reflecting their age and wear.
Many policies pay ACV initially, then the remaining "recoverable depreciation" once repairs are actually completed and documented — check your specific policy for which structure applies.
Step 6: Getting Repair Estimates
You're generally free to choose your own contractor rather than one recommended by the insurer, though get multiple estimates for comparison. If the insurer's estimate seems significantly lower than contractor quotes you receive, this is worth raising directly with the adjuster or, if needed, disputing through your state's insurance department or a public adjuster.
Understanding Your Deductible
Your deductible is subtracted from the claim payout — a $2,000 claim with a $1,000 deductible results in a $1,000 payment. For relatively minor damage close to your deductible amount, filing a claim may not be worth it, since claims history can affect future premiums.
Does Filing a Claim Raise My Premium?
Often yes, particularly for multiple claims within a short period — insurers may increase premiums or, in some cases, decline to renew a policy after a pattern of claims. This is worth weighing when deciding whether to file for smaller damage amounts near your deductible.