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Home Insurance Claims

Everything You Need to Know About Home Insurance Claims

Have you never had to deal with home insurance claims and want to know what to do in a crisis? Good for you! It is important to prepare as much as possible for events out of your control.

In fact, most home insurance claims are weather-related which you 100% cannot control.

If you have never bought an insurance plan before (or do not know what is on yours!) here is everything you need to know about homeowners insurance and making a claim.

There Are Five Main Home Insurance Plans

Not all home insurance offers the same coverage. When buying insurance, you will learn that there are five distinct types. These are:

  • HO-1
  • HO-2
  • HO-3
  • HO-5
  • HO-8

The first two are “peril policies” because they only cover home insurance claims due to crises like theft. HO-3 is, by far, the most common home insurance policy. HO-3, along with HO-5, are “open peril policies” because they include the house’s structure.

Considering most home insurance claims are due to weather, HO-3 or HO-5 policies are a great idea.

You would buy an HO-8 policy if you have an older or valuable property. The exact price of home insurance depends on the HO level and the individual valuation of your home and its contents. Most have an excess, some do not.

It is vital to know what your home insurance policy covers when getting a new home in case you need to make a claim. You should also keep it up to date. Murphy’s Law dictates that a hurricane will damage your new deck the week after you built it!

Make the Home Insurance Claim ASAP

In the event of a theft, contact the police before making your home insurance claim. But in most other instances, contact your insurance provider as soon as possible.

Some claims take as little as 48 hours to solve. Others, like fire damage, for example, may take longer. 

Keep as Much Evidence as Possible

Many homeowners worry about having their homeowners insurance claims rejected. But this is unlikely and it is even less likely if you keep evidence.

First, before you need to make any home insurance claim, take photographs of your most precious (and expensive) belongings. These are home entertainment equipment setups, jewelry, and heirlooms.

Designer clothes and furniture count too. Put the photos in a folder on your computer and add to it when necessary.

Also, keep any receipts from expensive or meaningful purchases. 

It is also important to take photographs of whatever you are claiming i.e. flood or smoke damage. Your home insurance company will also take photographs, but it is good for you to have them too. 

Be Prepared For Home Insurance Claims

Like the scouting motto, be prepared to make home insurance claims in the future.

No one likes thinking about weather damage or theft. But if an unfortunate event does occur, it will be so much easier to deal with if you know your policy and have all the documents ready. Did you find this article useful? Check out our other home improvement and real estate guides for more tips!

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