When you have a homeowners claim, gather as much information as you can as soon as possible. In traumatic situations, it can be difficult to recall all the information later. It also helps to photograph the source of the damage, such as the source of a water leak. Do what you need to do to prevent further damage, such as boarding up broken windows, but don’t start cleanup or other significant work until the insurance adjuster comes.
Filing a small claim could cost you a claims-free discount or trigger a rate increase, and filing a series of small claims could eventually get you dropped by your insurer. Better to pay small claims yourself and keep your deductibles high to benefit from lower premiums.
Use apps from your insurer that make it easy to send pictures and other records. Then keep in frequent touch with your adjuster, either through email or by phone.
Set up a meeting with the contractor and the adjuster at the damage site. If you don’t have a regular contractor — or if you have water damage or other special issues — your insurer may be able to recommend some companies.
Keep receipts for hotel stays, meals and other extra living expenses while you’re out of your house; those costs may be reimbursed by the insurer. Also keep records of all supplies you buy to help contain the damage. Be sure to contact the insurer if the contractor finds new issues after the repairs begin.
— How to fight back: Every state insurance department has a free service to help you through the claims process and to make sure you’re getting everything you’re entitled to under your policy, says John Huff, Missouri’s director of insurance. Huff says that, mostly due to the devastating tornado in Joplin, Mo., his department had 21,000 inquiries last year and recovered an extra $19 million in claims payments for consumers. If your area has had a major disaster, your state insurance department may set up a special appeals process. Even when there’s no major disaster, your state can help.
Don’t jump at an offer from an independent adjuster to provide extra help before working with your insurance company and state insurance department. Freelance adjusters charge a percentage of your payout — typically 10 percent to 15 percent of the amount recovered. Plus, a public adjuster should be licensed with your state insurance department.
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(Kimberly Lankford is a contributing editor to Kiplinger’s Personal Finance magazine and the author of Ask Kim for Money Smart Solutions (Kaplan, $18.95). Send your questions and comments to
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