Insurance Claim Process
The Insurance Claim Process for Your Residential Home:
A Step-by-Step Guide
Navigating through the insurance claim process after your home has been affected by a storm or any other damaging event can feel overwhelming. To help alleviate some of that stress, we've broken down the key steps involved in the insurance claim process for a residential home. Additionally, we'll address some common questions and concerns homeowners often have.
Step 1: Inspection and Documentation
Before anything else, thoroughly inspect your property for any damages caused by the recent storm. It's crucial to document everything meticulously. Take clear photos or videos of all affected areas. This documentation will be vital when filing your claim, as it provides concrete evidence of the damage.
Step 2: Filing a Claim
Once you've assessed and documented the damage, the next step is to file a claim with your insurance carrier. Contact them as soon as possible to report the damage. Your insurance provider will then schedule a time for an adjuster to visit your home. This visit is to inspect the damages and determine what repairs the insurance will cover.
Step 3: Adjuster's Inspection
An adjuster from your insurance company will come to your house to evaluate the damages. They'll take a detailed look at all the documented damages and may take additional notes or photographs. Based on their findings, they will write a scope of work, essentially an estimate of the cost to repair the damages covered under your policy.
Step 4: Receiving the Actual Cash Value Check
After the adjuster has completed their assessment, your insurance company will send you an actual cash value (ACV) check. This check is meant to cover the cost of the repairs, minus your deductible and any depreciation. It's important to note that this might not be the total amount needed to complete all repairs.
Step 5: Completing Repairs
Once you receive the ACV check, you can begin the repair process. It's advisable to choose reputable contractors who are experienced in dealing with insurance repairs. Ensure that the repairs are completed according to the scope of work outlined by the adjuster.
Step 6: Releasing the Recoverable Depreciation Check
After repairs are complete, your insurance company will release a recoverable depreciation check. This final payment indemnifies you, covering the difference between the actual cost of repairs and the initial actual cash value payment. This ensures you are fully compensated for your loss, minus your deductible.
Common Questions and Concerns
What do I have to pay out of pocket?
Your only out-of-pocket expense should be your deductible. The insurance payments (ACV and recoverable depreciation) should cover the rest of the repair costs.
Who do I pay the deductible to?
Typically, you will pay your deductible to the contractor completing the repairs on your property.
The insurance only gave me a few hundred dollars to do the repairs.
The initial check from insurance may not cover all repair costs due to deductibles and depreciation. However, working with a trusted contractor to help convey the damages and agree on a proper scope of repairs that reflects the work that needs to be done to properly perform the repairs.
Understanding the insurance claim process and knowing what to expect can significantly reduce the stress associated with home repairs after a storm. If you have further questions or need assistance, don't hesitate to reach out to your insurance provider for clarification.