Important Things to Know About Property Insurance Claims

Claims Have Deadlines

Property insurance policies contain several important deadlines:

Reporting Requirements: Most policies require you to report losses "promptly" or within a specific timeframe (often 60 days). Reporting late can jeopardize your claim.

Proof of Loss Deadlines: Many policies require you to submit a sworn proof of loss within 60 days of the insurance company's request. This is a formal document detailing your loss and damages.

Claim Filing Deadlines: Some policies require claims to be filed within a certain period after the loss occurs (commonly one year, but this varies).

Legal Action Deadlines: Policies typically specify how long you have to file a lawsuit if a claim dispute arises (often one or two years from the date of loss, depending on your state).

Missing these deadlines can affect your ability to recover on your claim. If you're unsure about deadlines in your policy, review your policy documents or consult with a professional.

Documentation is Critical

Insurance claims require evidence of damage and loss. The more documentation you have, the better:

Photograph and Video Everything: Document all damage as soon as it's safe to do so. Take photos and videos from multiple angles. Include close-ups of specific damage and wide shots showing the overall extent.

Keep All Receipts: Save receipts for:

• Emergency repairs

• Temporary housing

• Property mitigation (like water extraction or board-up)

• Damaged items you need to replace immediately

Maintain Records: Keep a file of all claim-related documents:

• Your insurance policy

• Correspondence with your insurance company

• Contractor estimates

• Repair receipts

• Your claim number and adjuster's contact information

Your Policy is a Contract

Your insurance policy is a legal contract between you and your insurance company. It specifies:

• What types of damage are covered

• What types of damage are excluded

• Coverage limits and deductibles

• Your responsibilities as a policyholder

• The insurance company's responsibilities

• How disputes are resolved

Reading your policy helps you understand what coverage you have. Policy language can be complex, but it's the governing document for your claim.

You Have Duties After a Loss

Most property insurance policies require policyholders to:

• Notify the insurance company promptly

• Protect the property from further damage

• Allow the insurance company to inspect the damage

• Provide requested documentation

• Cooperate with the investigation

• Submit to examination under oath if requested

These are called "duties after loss" or "conditions" in your policy. Failing to meet these requirements can affect your claim.

Mitigation is Required

Insurance policies typically require property owners to mitigate damage—meaning you must take reasonable steps to prevent additional damage after a loss.

Examples of mitigation:

• Placing tarps over roof damage

• Extracting water after flooding

• Boarding up windows after storm damage

• Removing damaged materials that could cause further issues

Keep receipts for mitigation work. Most policies cover reasonable mitigation costs.

Claim Settlements Can Take Different Forms

Insurance companies can settle claims in several ways:

Repair/Replacement: The insurance company pays to repair or replace damaged property.

Actual Cash Value (ACV): The insurance company pays the depreciated value of damaged items. For example, if your roof was 15 years old, they might pay only a portion of replacement cost.

Replacement Cost Value (RCV): The insurance company pays the full cost to replace damaged items with new ones. Often paid in stages—ACV first, then additional payment after repairs are complete.

Your policy specifies which valuation method applies to different types of property.

Disputes Can Arise

Even with straightforward claims, disagreements sometimes occur:

• The insurance company and property owner disagree on the cause of damage

• They disagree on whether the policy covers the damage

• They disagree on the cost to repair the damage

• They disagree on the scope of damage

These disputes are normal occurrences in the claims process. Property insurance policies typically include methods for resolving disputes, such as appraisal for valuation disagreements or mediation for other issues.

Professional Help is Available

Property owners aren't required to navigate claims alone. Options for professional assistance include:

• Public adjusters for comprehensive claim representation

• Appraisers for valuation disputes

• Attorneys for coverage disputes or litigation

• Contractors for damage assessment and repair estimates

Each professional serves a different purpose in the claims process.

Your Rights as a Policyholder

As a policyholder, you have the right to:

• File a claim under your policy

• Receive payment for covered losses

• Hire professionals to represent your interests

• Appeal claim denials

• Invoke policy dispute resolution procedures

• Contact your state insurance department with concerns

Be Patient But Persistent

Insurance claims take time. Simple claims might resolve in weeks, while complex claims can take months. Factors affecting timeline include:

• Extent of damage

• Complexity of loss

• Number of parties involved

• Whether disputes arise

• Insurance company workload

Stay in communication with your insurance company or your representative. Document all conversations and keep organized records.

Conclusion

Understanding these fundamentals helps you navigate property insurance claims more effectively. Whether you're handling a claim yourself or working with a professional, knowing about deadlines, documentation requirements, policy provisions, and your rights as a policyholder provides a foundation for the process ahead.

If you have questions about your specific situation, consider consulting with a licensed public adjuster or other qualified professional. Property insurance claims are complex, and professional guidance can help ensure you understand your coverage and options.