A step-by-step homeowner's guide to managing property damage claims effectively and avoiding denial pitfalls.
Insurance policies require you to mitigate further damage. Failing to do so can result in claim denial.
Shut off the main water valve if it's a pipe break. Turn off electricity to affected rooms. Tarp the roof or board up broken windows. Keep your receipts for any emergency materials purchased.
Take wide-angle photos and videos of the affected rooms. Do NOT throw away the broken pipe or damaged appliance—the insurance company needs to inspect the source of loss.
File the initial claim. Write down your Claim Number and the name/contact info of your assigned Desk Adjuster immediately.
You have the right to hire an emergency water mitigation company to extract standing water immediately. You do not have to wait for the adjuster to arrive to start emergency dry-out.
The field adjuster works for the insurance company. Their job is to write the initial estimate (Scope of Work).
If possible, schedule the adjuster to arrive at the same time as your chosen restoration contractor. They can negotiate the scope of work (like agreeing on exactly how much drywall needs to be replaced) right there on site.
Don't assume the adjuster sees everything. Show them water that wicked up behind the baseboards, smoke in the HVAC return, or water that leaked through the ceiling into the lower floor.
Your insurance company may recommend a specific contractor from their "Vendor Program". By law, you have the right to hire any licensed contractor of your choosing. You do not have to use their recommendation.
Ensure your chosen contractor uses "Xactimate" estimating software. 90% of insurance carriers use this pricing software. If the contractor uses it too, approvals happen much faster because they are speaking the same language.
The first check you receive will likely be for ACV (Actual Cash Value). This is the depreciated value of your items. Once the repairs are completed and invoiced, the carrier releases the withheld depreciation, making it RCV (Replacement Cost Value).
If your contractor opens the walls and finds more damage (like hidden mold or rotten studs), they will file a "Supplement." This is a request for additional funds beyond the initial estimate. This is completely normal.
If your settlement check is over a certain amount (usually $10,000), it will be made out to YOU and YOUR MORTGAGE COMPANY. You must send the check to the mortgage company to be endorsed before you can cash it or pay your contractor.