A home insurance claim is your formal report of a sudden, accidental loss covered by your policy (for example, fire, theft, or certain types of water damage). Standard homeowners policies (most commonly HO-3; some markets offer broader HO-5) bundle six core protections—Dwelling (A), Other Structures (B), Personal Property (C), Loss of Use/Additional Living Expense (D), Personal Liability (E), and Medical Payments to Others (F). Homes are typically insured on an “open perils” basis (except exclusions), while belongings are insured for “named perils” unless you upgrade; exclusions commonly include flood and earthquake unless you buy separate coverage or endorsements. See overviews from the Insurance Information Institute and the NAIC.
You should be ready to notify your insurer promptly after a loss and confirm what’s covered, your limits, and all deductibles—including any hurricane/named-storm or wind/hail deductible that can be a percentage of Coverage A (commonly 1%–5%) and only applies when those events trigger it (catastrophe deductible basics). Before filing, document damage with timestamped photos/video, locate receipts, and understand whether belongings are settled at actual cash value or replacement cost (ACV vs. RCV). Pre‑loss prep helps: maintain a digital home inventory and store it in the cloud (NAIC home inventory), set up your insurer’s claim app/portal, and review optional add‑ons like water backup, service line, equipment breakdown, and ordinance or law coverage (Triple‑I coverage options; service line; equipment breakdown). Elevated catastrophe activity has kept pressure on claims and premiums—NOAA recorded a record 28 separate U.S. billion‑dollar disasters in 2023, and Swiss Re estimated about USD 65 billion in insured nat‑cat losses in the first half of 2024 (NOAA; Swiss Re Institute).
Anytime you make a home insurance claim, it typically appears on your CLUE report. CLUE (Comprehensive Loss Underwriting Exchange) is a nationwide database operated by LexisNexis that stores up to seven years of personal property loss history and is routinely queried by insurers at quote and renewal; you’re entitled to a free annual disclosure and can dispute inaccuracies under the FCRA (request your CLUE report; how CLUE is used). State rules can limit pricing impacts: for example, Texas restricts consideration of weather claims, “inquiries” where no claim was filed, and claims older than three years (Texas DOI guidance). While CLUE can show seven years, many rating plans focus on the most recent three to five years for surcharges (LexisNexis).
How to File a Home Insurance Claim
- Notify your insurance company: Report the loss as soon as it’s safe (app/portal or hotline). Ask what’s covered, which deductibles apply, and whether a catastrophe‑specific deductible is in play—many coastal and hail‑belt states use hurricane/named‑storm or wind/hail deductibles set at 1%–5% of Coverage A (catastrophe deductibles). If likely repairs are below your deductible, it may not be economical to file.
- Submit claim documents: Complete First Notice of Loss and supply photo/video evidence, receipts, and an itemized inventory. Many carriers support uploads and e‑signatures, which can speed cycle time; keep your own copies of everything submitted (Triple‑I claim steps).
- Survey damaged items: When safe, document the home inside and out (roof, siding, rooms, yard) and make a list of damaged belongings with values and serial numbers. Retain damaged items until inspection if feasible; FEMA also advises saving receipts for emergency repairs and lodging (FEMA claim guidance).
- Meet with an insurance adjuster: Insurers may use virtual assessments, AI‑assisted estimating, or an in‑person inspection. Walk the adjuster through all damage and share your inventory and any contractor estimates; request a reinspection or human review if the scope appears incomplete (claims satisfaction research).
- Make small repairs yourself: After you’ve documented damage, make temporary repairs to prevent further loss—tarp a roof, board windows, remove hazardous debris—and save receipts for reimbursement. Understand whether payments begin at ACV with recoverable depreciation released after repairs (NAIC—ACV vs. RCV).
- If you have to stay in a hotel, track your expenses: If you’re displaced, Loss of Use/Additional Living Expense can reimburse the reasonable increase in living costs. Ask about advances and preferred e‑payment options (EFT/virtual card), and verify details through secure channels. States set expectations for timely acknowledgment, investigation, and payment—ask your insurer to outline timelines and your rights (see the California Residential Property Insurance Bill of Rights for an example).
How to File a Claim with Renter’s Insurance
Renters insurance generally covers your personal property, Loss of Use/Additional Living Expenses if a covered loss makes your unit uninhabitable, personal liability, and medical payments to others; the building itself is the landlord’s responsibility (NAIC overview). Be aware of common sublimits for valuables (e.g., jewelry, art, firearms, collectibles, and money) and consider scheduling high‑value items to raise limits and broaden causes of loss (Triple‑I valuables coverage).
If anything occurs on your rented property that has you thinking of making an insurance claim, contact your landlord or property manager first for structural or systems issues. If they can resolve the problem without a claim on your policy, that may avoid a loss entry. Like home insurance claims, renters claims are recorded in CLUE; consumers can obtain a free annual disclosure and dispute errors (CLUE disclosure). Some states limit how prior weather claims or inquiries can affect pricing (for example, Texas).
After consulting your landlord to find out what remaining losses roll over to your renter’s insurance coverage, talk with your agent. Confirm your deductible, sublimits, and whether the loss exceeds your out‑of‑pocket. Insurers often focus on the last 3–5 years when applying prior‑loss surcharges even though CLUE can show up to seven years; state guardrails can moderate impacts depending on claim type and jurisdiction (LexisNexis; Triple‑I on CLUE).
What happens if your claim is denied?
Common denial reasons include exclusions, wear and tear/neglect, late notice or missed deadlines, insufficient documentation, or limits/deductibles being higher than the loss. Review your policy’s exclusions and endorsements—flood and earthquake are generally excluded unless you buy separate coverage; water/sewer backup typically requires an endorsement (Triple‑I coverage/exclusions; NFIP flood coverage).
- Negligence. Policies exclude wear, tear, and neglect; insurers can deny losses tied to lack of maintenance or failure to mitigate further damage (for example, long‑term leaks or unrepaired roofs). Document mitigation steps and keep receipts to support your claim (Triple‑I claim steps).
- Not covered peril. Flood requires a separate policy through NFIP or private markets; water backup from sewers/drains usually needs an endorsement. Verify coverage before filing to avoid an unnecessary CLUE entry (NFIP—what flood covers; NAIC).
- Too much time lapsed before filing a claim. Policies require prompt notice. Some states set specific reporting windows (e.g., Florida residential property claims generally must be reported within 1 year; supplemental within 18 months), and many property policies include 1–2 year suit‑limitation clauses (for example, 12 months under California’s standard fire policy, tolled from notice to denial; two years under New York’s standard fire policy). File promptly and track deadlines (Florida claim‑reporting deadlines; California §2071; New York §3404).
If you believe the denial is wrong, request a detailed written explanation and submit additional documentation. You can invoke the policy’s appraisal clause, use state dispute tools (for example, the California Residential Property Insurance Bill of Rights outlines consumer protections) or seek state‑run mediation where available (for example, Florida’s residential property mediation).
Does Homeowners Insurance Go Up After a Claim?
Often yes. Consumer pricing analyses indicate a single homeowners claim can raise premiums by roughly 7%–20% on average, with larger impacts for certain non‑catastrophe losses (e.g., non‑weather water), while first‑time weather claims may be treated more leniently in some states (Consumer Reports). The broader market backdrop also matters: the U.S. saw a record 28 billion‑dollar weather/climate disasters in 2023 and elevated global insured losses into 2024, which continue to pressure property claim costs and rates (NOAA; Swiss Re Institute).
In most cases, any change occurs at renewal. Carriers frequently remove loss‑free discounts and apply prior‑loss surcharges with a typical lookback of about 3–5 years, even though CLUE can show up to seven years of history; state guardrails may limit how weather claims or mere inquiries affect price (e.g., Texas). Expect tighter underwriting and potential structural changes at renewal (higher wind/hail deductibles, roof ACV settlement) in highly exposed regions (LexisNexis—CLUE basics; Federal Insurance Office 2024).
If you’re concerned about increases, ask your insurer about raising your base deductible, bundling, or adding mitigation that may qualify for credits. Review coverage choices (e.g., water backup endorsement, roof settlement terms, extended replacement cost, ordinance or law), and confirm any catastrophe‑specific deductibles and triggers—commonly 1%–5% of Coverage A for hurricane/named storm or wind/hail (cat deductible ranges; Triple‑I coverage options). In catastrophe‑stressed states, regulators are adjusting frameworks to stabilize availability (for example, California’s Sustainable Insurance Strategy), but pricing still reflects elevated risk (California strategy).
Homeowners Insurance Claims FAQ
Can you keep homeowners insurance money?
If your payment exceeds the cost of repairs, any remaining balance is generally yours—provided there’s no mortgagee listed on the check and you’ve met policy conditions. With replacement cost coverage, initial payments often start at ACV with “recoverable depreciation” released after you submit proof of completed repairs; lender‑named checks may require inspections or escrow (NAIC—ACV vs. RCV).
Are claims payouts taxable?
For personal homeowners or auto claims, reimbursements for covered losses are generally not taxable; they reduce your basis. Interest paid on a claim is taxable interest income, and business interruption proceeds are generally taxable as business income. See current IRS guidance (Publication 525; Publication 547).
What’s Next
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- Are you ready for what claims inclement weather can bring your way?
