I frequently have clients reach out with photos (which is helpful) of damage to their home, wanting to know if they should turn in a home claim. Many times, what I see is that the contractor’s estimate is below their homeowners’ deductible. In these instances where the claim is small, I suggest not turning it in.
Insurance carriers are looking at each client and their claim history to determine what your renewal may look like. Typically, underwriters will review how many home claims and the size of the claims you’ve had in the past six years. Even if it is a small claim, having that on your record will likely cause your home insurance premium to increase.
So, I always suggest that you speak with one of us before turning in a claim. We are here to guide you and answer your questions. We can also help you find a contractor (check out these tips on finding a home contractor).
However, for certain scenarios, like roof leaks and water backup, time is of the essence. It is important to get a professional contractor out asap to do an estimate and a short-term fix (such as tarping a leaking roof) to prevent further damage from occurring.
If you have water damage, I recommend getting a water damage restoration expert to clean up and dry out the area. Most of these companies also offer reconstruction services as well.
Please keep in mind, having a smooth claim experience starts before you ever have a scenario where damages occur.
4 Things You Can Do Now:
1. Read your policy
Your DEC page is an overview that shows you what coverages are included. However, this does not include the full scope of what is covered and what is not. It is important to read your full policy and understand the fine print. This can be confusing and hard to understand if you are not used to looking at insurance policies. We are always here to help you understand your coverage if you have questions.
2. Make sure you have the right coverage – and that it is up to date
We always do a thorough review when you initially become a RiskSOURCE/OneDigital client, but it is important to make sure that you let us know when you make updates to your home. Not having the right coverage means you could end up paying for things out of pocket.
3. Complete a home inventory every few years
This can be as simple as using your phone to film a video or take pictures to document your home’s contents. Make sure to store this off-site from your home, such as in the cloud or with a physical back-up in a safety deposit box or elsewhere.
4. Maintain your property
General home maintenance is not covered, as well as claims that occur because of a lack of maintenance. It is important to address regular maintenance and repairs. This Home Claim Prevention Checklist covers top property maintenance to-dos along with other claim prevention tips.
4 Things to Avoid at Claim Time:
1. Not documenting the damage
Film and photograph everything you can before starting clean-up. Take a few quick notes, including time, date, and any potentially relevant information.
2. Poor communication
Be specific and include as much detail as possible. Documenting the damage and writing important information down will allow you to be prepared when the insurance carrier asks questions – time, date, specific locations on the property, weather conditions, and any and all detail that could be relevant.
3. Waiting
Don’t delay. A carrier could claim that you failed to report in a timely matter or that you failed to mitigate the damages. If you are not sure what you want to do or if you want to turn in the claim or not, contact your agent. Your agent can advise if it is wise to turn in the claim to the carrier. Talking to your agent about a claim is not the same as officially submitting a claim to a carrier.
4. Trying to tackle a big claim alone
Dealing with damages to your home is stressful. This is especially true if large parts of your property are unusable, you have to temporarily move out, or you lose your home altogether. There are a lot of parties involved in resolving a claim from the insurance carrier to the various contractors that may be involved in cleaning up the damages. Your agent is your guide in all of this and deals with these situations regularly. They can advocate on your behalf.
We’d love to hear from you – please reach out! We are here to help.
