How to Make Sure Your Claim is Paid

Filing an insurance claim can be stressful, especially when you're dealing with property damage or a personal loss. Understanding the claims process and knowing how to properly document your loss can make the difference between a smooth settlement and a frustrating experience.

Before a Loss Occurs

The best time to prepare for a claim is before you ever need to file one. Here are steps to take now:

Review your policy: Understand what is and isn't covered. Know your deductibles and coverage limits.
Create a home inventory: Document your possessions with photos, videos, and receipts. Store copies off-site or in the cloud.
Keep important documents safe: Store insurance policies, receipts for major purchases, and appraisals in a fireproof safe or off-site location.
Maintain your property: Regular maintenance can prevent claims and shows good faith to insurers.

When a Loss Occurs: Immediate Steps

Protect your property: Take reasonable steps to prevent further damage (cover a roof leak with a tarp, turn off water if a pipe bursts).
Document everything: Take photos and videos before cleaning up or making repairs.
Report the claim promptly: Contact your insurance company or agent as soon as possible.
Keep receipts: Save receipts for any emergency repairs, temporary housing, or other expenses related to the loss.

Working with the Claims Adjuster

After you file a claim, an adjuster will be assigned to evaluate your loss. Here's how to work effectively with them:

Be honest and thorough in describing the damage
Provide all requested documentation promptly
Be present during the inspection if possible
Ask questions if you don't understand something
Keep notes of all conversations and correspondence

Understanding Replacement Cost vs. Actual Cash Value

How your claim is paid depends on your policy type. With replacement cost coverage, you receive the full cost to repair or replace damaged items. With actual cash value, depreciation is deducted. Many policies pay actual cash value initially, then reimburse the difference once repairs are completed. Keep all receipts to receive the full replacement cost benefit.

Common Reasons Claims Are Denied

Understanding why claims get denied can help you avoid these pitfalls:

The loss isn't covered by your policy
The claim was filed too late
Lack of maintenance contributed to the damage
Insufficient documentation of the loss
Misrepresentation on the insurance application

Should You File a Small Claim?

Before filing a claim for minor damage, consider whether the payout after your deductible is worth potentially affecting your claims history. Multiple small claims can lead to higher premiums or non-renewal. Generally, it's best to reserve claims for significant losses that you couldn't easily pay out of pocket.