Home

The Anatomy of a Homeowner's Insurance (Property) Claim

1. If damage occurs to the insured dwelling, outbuilding or contents, it may be covered by your Homeowner’s Insurance Policy:

• HO-3  “Special Form”
• HO-2  “Broad Form”
• HO-1  “Basic Form”
• HO-4  “Tenant’s Policy”
• HO-6  “Condo Unit Owner’s Policy”

For people who own their own home, the most common coverage form is the HO-3 “Special Form”.  The HO-3 covers every type of damage except that which is specifically excluded.   Your agent can help you understand the coverage that is included, excluded or limited under your policy.

2. Insured’s duties — It is the responsibility of the “insured” to report the loss to the insurance carrier or to his or her independent agent.  Your agent will report the loss to the insurance company on your behalf. The claim department of the insurance company will set up a claim file, assign a claim number, and assign an adjuster to handle your claim.  The adjuster will contact you directly.

3. It is also the responsibility of the “insured” to take steps to protect the property from further damage.  Such steps may include…

• Getting a plumber to fix a leaking pipe
• Getting a water mitigation company to extract water and dry the structure to prevent mold growth
• Getting a contractor to board up a fire-damaged building
• Getting a contractor to tarp a damaged roof
   

4. The adjuster’s responsibility is to:

• Determine whether there is coverage for the loss
• Determine whether there is an adequate amount of coverage
• An inadequate amount may result in a “co-insurance” penalty
• Determine the amount of a fair settlement for the repair or replacement based on the method of valuation in your policy
• Replacement Cost
• Actual Cash Value (replacement cost minus depreciation)
• Issue a check for a fair settlement minus your deductible amount
  
  

5. Your insurance agent can help you with reporting the claim, dealing with the adjuster, and choosing a disaster restoration contractor.