Insurance Claim Process Basics

Most homeowners think filing a claim is just “call insurance and wait for a check.” It’s not. A claim is an investigation, and the insurer’s goal is to verify the damage, confirm the cause, and limit what they owe. Knowing how the process actually works keeps you from being delayed, lowballed, or denied.

If you haven’t already built a documentation system for your home, read documenting your home. Strong claims start long before the loss happens.

1. Step One: Report the Claim Quickly

Every carrier expects fast reporting. Waiting too long gives them room to argue:

• The damage got worse due to neglect
• They can’t verify the cause
• The timeline doesn’t match the event

File the claim as soon as you discover damage—especially for water losses.

2. Step Two: Mitigate (Not Repair) the Damage

Your job is to stop the damage from spreading. Their job is to pay for the original loss—not anything that got worse because you didn’t act.

• Shut off water sources
• Board up broken windows
• Cover roof openings with tarps
• Remove standing water if safe

Do not start major repairs. Insurers need to see the damage as it happened.

3. Step Three: The Adjuster Visit

The adjuster isn’t there to “help”—they’re there to document damage and determine what the insurer owes. Their report decides your payout.

• Walk them through the damage calmly and clearly
• Show photos and videos you took immediately after the event
• Point out anything hidden (attics, crawlspaces, behind items)

Adjusters compare what they see to policy wording. If you want a refresher on the coverage types involved, read homeowners coverage explained.

4. Step Four: Estimates and Payout Calculations

Insurers use standardized pricing software (often Xactimate). Your contractor’s estimate may not match theirs. That’s normal—and negotiable.

• Expect an initial ACV payment
• Recoverable depreciation is paid after repairs
• Deductibles come out of your payout, not your repair bill

If you don’t fully understand ACV vs replacement cost, review ACV vs RCV so you know why the first check is always smaller.

5. Step Five: Disputing Low Estimates

If the payout is lower than the real repair cost:

• Submit competing contractor estimates
• Request a reinspect if damage was missed
• Provide updated photos or expert opinions
• Challenge incorrect depreciation amounts

Claims are negotiable—politely, firmly, and backed by evidence.

6. Step Six: Completing Repairs and Getting the Final Payment

Replacement cost policies pay in two stages. Once repairs are done:

• Submit paid invoices
• Submit photos of completed work
• Request the recoverable depreciation payout

This last check is often substantial. Don’t leave it unclaimed.

7. Claim Mistakes That Get Homeowners Denied

• Not documenting damage immediately
• Throwing away damaged items before photographing them
• Starting full repairs before the adjuster sees the site
• Claiming old damage as new damage
• Failing to perform emergency mitigation

Most denials come from process mistakes—not fraud. Learn the steps and avoid giving the insurer leverage.