Most people file one or two homeowners claims in their lifetime, which means they learn the process at the worst possible moment. The insurer, meanwhile, processes thousands a day.
That asymmetry is the whole problem. Here’s the sequence that protects you.
Before Anything Happens
Two things, done now, are worth more than anything you can do afterwards.
Build a home inventory. Walk every room with your phone recording video, narrating as you go, opening drawers and closets. Photograph serial numbers on electronics and appliances. Store it in the cloud, not on a device that lives in the house. When you’re arguing about whether you owned a $2,400 espresso machine, the video ends the argument in seconds.
Read your declarations page. Know your dwelling limit, your deductible, whether your wind or hail deductible is a percentage, and whether your personal property is covered at replacement cost or actual cash value. That last distinction determines whether a ten-year-old sofa pays out at what it cost or what it’s worth today — which is often 20% of it.
Step 1: Stop the Damage
Your policy obligates you to prevent further loss. Tarp the roof, shut the water off, board the window. Keep every receipt — these mitigation costs are reimbursable, and failing to mitigate gives the insurer grounds to deny the additional damage that follows.
Do not begin permanent repairs. Temporary only, until the adjuster has seen it.
Step 2: Document Before You Clean Up
Photograph and video everything from multiple angles before moving anything. Wide shots showing the room, then close-ups of specific damage. Include a timestamp if your camera supports it.
If you must remove wet carpet or debris for health reasons, photograph it in place first, then keep a sample where practical.
Step 3: Decide Whether to File at All
This is the step people skip. If the damage is close to your deductible, filing may cost you more than it pays.
A $3,200 claim on a $2,000 deductible pays $1,200. That claim sits in the CLUE database for seven years, may surcharge your premium for five, and in a hard market can make you non-renewable. Run that arithmetic before calling.
Note that even an inquiry can be logged. If you’re unsure, ask a broker or ask the carrier hypothetically without providing your policy number.
Step 4: Report Promptly and in Writing
Policies require prompt notice. Call, then follow up by email or the carrier’s portal so there’s a written record of the date.
Give the facts: what happened, when, what’s damaged. Don’t speculate about cause, don’t estimate the value, and don’t say anything resembling “it’s probably not that bad.” Early guesses get quoted back at you.
Write down the claim number, the adjuster’s name and direct line, and the date of every subsequent contact.
Step 5: The Adjuster Visit
The adjuster works for the insurer. That doesn’t make them adversarial, but their estimate is the insurer’s opening position, not a neutral finding.
- Be present for the inspection. Walk the property with them.
- Point out damage they haven’t noted, including in adjacent rooms. Water travels.
- Give them your inventory list and photographs.
- Ask when you’ll receive the written estimate and what the next step is.
Get your own contractor estimate independently, in writing and itemised. Two or three is better. If your contractor’s number is materially above the adjuster’s, that’s a negotiation with evidence behind it rather than a complaint.
Step 6: Read the Settlement Carefully
Check three things:
Replacement cost vs. actual cash value. Many policies pay actual cash value first and release the depreciation holdback only after you complete the repairs and submit receipts. If you don’t do the work, you never receive the second cheque. Know which structure you’re in.
Scope, not just price. Disagreements are more often about what’s included than about unit costs. Does the estimate cover matching undamaged materials so the repair doesn’t look patched? Does it include code upgrades?
The deductible. It’s subtracted once per claim, not per item.
If You Disagree
You have more options than accepting or suing.
- Supplement the claim. Submit your contractor’s itemised estimate and ask for a written response line by line. Most disputes resolve here.
- Request a re-inspection, ideally with your contractor present.
- Invoke appraisal. Nearly every policy contains an appraisal clause: each side appoints an appraiser, the two select an umpire, and the decision binds on the amount of loss. It’s far faster and cheaper than litigation and it’s underused.
- File a complaint with your state insurance department. This is free, creates a regulatory record, and frequently produces movement.
- Consider a public adjuster for large or complex losses. They work for you, typically for 5-15% of the settlement — worth it on a total loss, rarely worth it on a small claim.
The Mistakes That Cost the Most
- Throwing damaged items away before documenting them
- Signing a contractor’s “assignment of benefits” without understanding that you’re handing over your claim rights
- Accepting the first offer as final when it’s an opening position
- Missing the deadline for the replacement-cost holdback, which is often 180 days or a year
- Giving a recorded statement without having read your own policy first
The through-line is documentation. Claims are decided on evidence, and the person with the photographs, the receipts and the dated log is in a materially stronger position than the person relying on memory.
For what your policy covers before you need it, see our home insurance coverage guide.