What Are Mistakes to Avoid in Filing a Homeowners Insurance Claim? - USNews.com

When filing a claim, promptly notify your insurance company after the event that's prompting the claim. Next, fill out and submit claim forms within the time allowed by your insurer. Thoroughly document the loss with photos, video, and a list of items lost or damaged with dollar amounts where applicable.

Make sure to comply with your insurance company's rules and state requirements for how long you have to make a claim. Conversely, don’t file a claim if you don’t have to. For minor damage or any repairs that will cost less than your deductible, you might be better off not making a claim at all. Filing a claim could drive up your home insurance rates or even lead to being dropped by your insurance company.

Pay attention to details, because you won’t be reimbursed for anything left out of your claim. The larger the claim, the more important this piece of the process becomes. A wind storm that causes a tree to fall on a fence is a fairly straightforward loss to document and report, while a fire that destroys the home is considerably more complicated. This is where photographing or videotaping the contents of your home ahead of time is so important, as is keeping an ongoing inventory of your possessions. “People underestimate how much stuff they have,” Feinman says.

This takes us to one of the biggest mistakes people make when buying homeowners insurance: failing to purchase sufficient coverage. “People make the mistake of shopping for price alone,” says Janet Ruiz of the Insurance Information Institute. Homeowners should think about how much it would cost to rebuild, she adds. Include all important information about your home when applying, such as the quality of materials. "Is the flooring carpet or hardwood? Do you have granite or laminate counters, or fine art?" Ruiz asks. "Be sure to update your coverage when you make changes.”

Finally, don’t always assume that your insurer is right and accept whatever they offer. Don’t be afraid to dispute a claim and to fight for as much reimbursement as you can get. Your insurance company may not be out to get you, but they don’t want to pay any more than they have to.