How Does a Homeowners Insurance Claim Work?

How quickly you file, how well you document damage and how you communicate with your insurer all affect your claim's speed and outcome.

Follow these steps when filing a home insurance claim:

• Step 1: Make sure everyone's safe and take clear photos or videos of the damage.
• Step 2: Call your insurance company to file your claim.
• Step 3: Work with your home insurance claims adjuster.
• Step 4: Keep receipts and track all related expenses.
• Step 5: Review the settlement offer when you get it.
• Step 6: Dispute or negotiate the offer if needed before agreeing.

Check if it’s safe to enter your home first. Stay out if you notice structural damage, exposed wires, gas leaks or flooding. Wait for emergency crews or a professional to confirm it’s safe.

Once you’re cleared to go inside, start documenting the damage:

• Take clear photos and videos of all affected areas.
• Include wide shots for context and close-ups from different angles to show the details.
• Photograph both damaged and undamaged areas for comparison.

Make a list of damaged items with their brand, model, estimated value and serial numbers.

The best homeowners insurance offer multiple ways to file your claim:

Having this information ready speeds up the filing process and helps your adjuster process your claim faster:

• Your policy number
• The date and time the damage happened
• A short description of the incident
• Photos or videos showing the damage
• A list of damaged or lost items
• Receipts or proof of purchase for affected items
• Records of any temporary repairs and related costs
• A police report or case number, if applicable

A claims adjuster evaluates the damage and confirms your claim details. They'll reach out within a few days to schedule an inspection. Walk them through the affected areas and answer their questions about what happened.

Document every expense from the moment damage occurs. Your insurer reimburses emergency repairs and additional living expenses only with proper receipts. 

If the damage forces you to temporarily move out, your policy's loss of use coverage, also called additional living expenses (ALE), helps pay for extra costs you wouldn't normally have: hotel stays, short-term rentals, takeout meals, laundry services and increased commuting expenses.

Here's how to document everything:

• Save all receipts related to damage, repairs or additional living expenses.
• Log each purchase or cost in a notebook, spreadsheet or expense tracking app.
• Include brief notes on what each expense was for and why it was necessary.
• Track only expenses beyond your normal living costs if you've temporarily relocated.
• Snap photos of paper receipts as digital backups if they fade or get lost.
• Check with your insurer if you're unsure whether a specific expense is covered.

After your insurance company reviews your claim and the adjuster's report, you'll get a settlement offer (the insurer's proposed payout to cover your loss). You'll receive it by mail, email or through your online account. Some companies send a written letter, while others include a check or direct deposit notification.

Review the offer carefully. Compare the settlement amount to your repair estimates and documented expenses. Make sure all damaged items appear in the breakdown and check the depreciation calculations match your policy terms (ACV vs. RCV). Flag any discrepancies before accepting payment.

If anything seems unclear or incorrect, ask questions or request a review.

Your first settlement offer isn't final. If it seems too low or doesn't cover your loss, push back. Compare the offer against your repair quotes and documentation. If numbers don't match or items are missing, negotiate.

Your homeowners insurance claim timeline depends on how serious the damage is, how quickly you file and how fast your insurer responds. Minor claims are usually resolved faster, while major damage or ongoing negotiations can take more time. 

Expect these milestones:

Your claim payout may not go directly to you. Where the money goes depends on your policy, mortgage status and the type of repair.

Before starting any work, talk to your insurer and mortgage company to confirm how and when the funds will be released. Stay in touch with both to avoid delays and confusion during repairs.

Your payout method depends on your mortgage status:

File a claim only when the damage is major, clearly covered by your policy, and the repair costs are much higher than your deductible. Insurance helps reduce the financial strain and speeds up home repairs.

Skip filing for minor issues, especially if the costs are close to or below your deductible. Small claims might raise your premiums or even lead to non-renewal with little financial gain.

Here’s a quick home insurance claim tip. Before filing, ask yourself:

• Does my policy cover this type of damage?
• Will repair costs far exceed my deductible?
• Could filing raise my future premiums?
• Can I afford to cover the repair myself?

If the answers suggest little benefit or higher risk, pay for repairs yourself and save your policy for bigger losses.

Filing a homeowners insurance claim has six steps: document damage, call your insurer, work with an adjuster, track expenses, review the settlement and dispute if needed.

Act within 24 hours of damage. Take detailed photos, save all receipts and reply quickly to your adjuster's requests. If the settlement is too low, gather supporting evidence and negotiate for a fair payout.

Filing a homeowners insurance claim raises questions about timing, costs and consequences. We answer common questions about the claims process.