Filing and Handling Property Insurance Claims: A Step-by-Step Guide for Homeowners and Landlords

Property damage is disorienting. Whether a sudden pipe burst floods a basement, a storm tears off shingles, or a kitchen fire guts a room, the immediate stress is followed by one central question: how do I work with my insurance company to restore my home or property fairly and quickly? This guide walks you through the entire property insurance claim process—what to do first, how to document losses, how adjusters evaluate damage, reasons claims get denied, how settlements work (RCV vs ACV), options when disputes arise, and practical tips landlords and homeowners can use to improve their outcome.

Why knowing the claims process matters

Understanding how a property insurance claim works reduces anxiety, speeds recovery, and improves the likelihood of a full and fair settlement. Insurers expect policyholders to cooperate: quick, clear documentation and prompt mitigation protect both parties’ interests. Conversely, missed deadlines, incomplete records, or unsafe repairs can delay settlement or even lead to denials. This guide is built to help you navigate every stage—before, during, and after filing a claim.

Before you file: immediate steps after damage

1. Prioritize safety and mitigation

First, ensure everyone is safe. If there’s immediate life danger—fire, structural collapse, hazardous materials—call emergency services. After safety is secured, take reasonable steps to protect the property from further harm. Common mitigation steps include:

• Shutting off water, gas, or electricity if they pose a risk (only if safe to do so).
• Boarding broken windows, securing doors, or covering a damaged roof with a tarp to prevent weather-related additional damage.
• Removing undamaged portable personal property to prevent theft or further harm.

Insurers require reasonable mitigation; failing to take it can reduce or void coverage for subsequent damage.

2. Notify your insurer quickly

Call your insurance company as soon as practical. Many policies specify a prompt-notice requirement. When you call, ask for a claim number and the name and contact info of the adjuster assigned. If your policy has a 24/7 claims line, use it. Document the date and time of the call and the representative’s name for your records.

Documenting damage: the foundation of a successful claim

Photographs and video

Take comprehensive photos and video—both wide shots to show the context and close-ups to capture details. Include timestamps if possible. For interior damage, capture entire rooms, then focus on damaged items, structural points (like a roof breach), stains, mold growth, scorched areas, and the exterior (roof, siding, gutters). Shoot from multiple angles and make short narrated videos describing what you’re showing.

Inventory and evidence

Create an inventory of damaged personal property. Include brand, model, approximate age, purchase price if known, and serial numbers. Save receipts and instruction manuals when available. If you must discard unsalvageable items for safety or health reasons, photograph and document them first and keep fragments for adjuster inspection if requested.

Receipts and emergency expenses

Keep receipts for any emergency or mitigation expenses (hotel, food, temporary repairs, plumber, tarping). Many policies include Loss of Use or Additional Living Expenses (ALE) coverage that reimburses reasonable extra living costs while repairs are underway.

Filing the claim: the practical steps

Understand your policy before filing

Review the declarations page, limits, deductibles (flat or percentage-based), covered perils, exclusions, and endorsements. Know whether the peril is covered (e.g., sudden water damage from a pipe vs. flood). This review helps you set realistic expectations and prepare evidence targeted to covered causes.

Report facts, not opinions

When speaking with your insurer or adjuster, report facts—what happened, when, how, and what you did afterward. Avoid assertions about cause unless you have technical proof. For example, say “I discovered a burst pipe under the sink at 7:00 AM on Tuesday; water flowed into the kitchen and pantry for approximately 30 minutes” rather than “the property was poorly maintained,” which could trigger coverage disputes.

Get everything in writing

Follow up phone calls with emails that summarize what was said and any agreed steps. If the insurer asks you to sign documents, read them carefully. Keep copies of all policy correspondence, adjuster reports, estimates, invoices, and photos in a dedicated folder—physical and digital backups are wise.

Adjusters: company adjuster vs public adjuster

Company adjuster (staff or contract)

Insurers will assign an adjuster to inspect the damage, verify coverage, and estimate loss. Company adjusters work for the insurer and represent the insurer’s evaluation. Be cooperative, provide documentation, and ask clarifying questions. During the inspection, point out all damage—including secondary or hidden issues like water behind cabinets or damaged insulation.

Public adjuster (your advocate)

If a claim is large, contested, or complicated, hiring a public adjuster can level the playing field. Public adjusters are licensed professionals who represent policyholders and are typically paid a percentage of the settlement. They can be particularly useful when insurers underpay or deny valid claims, but confirm licensing, references, and fee structure before hiring.

How to interact during an inspection

Be present for the inspection if you can. Walk the adjuster through the property, show them your photos and receipts, and discuss any pre-existing conditions honestly. If you disagree with the adjuster’s findings, ask that your concerns be noted in the report and request a copy of the adjuster’s estimate.

Common claim types and special handling

Fire and smoke damage

Fire claims usually include structural damage and significant personal property loss. Smoke can damage areas beyond the visible burn. Save receipts for emergency stabilization, keep damaged but salvageable items for inspection, and expect additional remediation steps (odor treatment, deep cleaning) that may be covered.

Sudden water damage vs gradual/maintenance issues

Policies generally cover sudden, accidental water events (burst pipes, appliance failure) but exclude long-term leaks caused by lack of maintenance. Document when the problem began and any prior maintenance. Rapid mitigation is critical to limit mold and further structural injury and is often required by policy terms.

Floods and earthquakes

Flood and earthquake perils are commonly excluded from standard homeowners policies. Flood coverage typically comes through the National Flood Insurance Program (NFIP) or private flood insurers. Earthquake/sinkhole coverage is typically an endorsement or standalone policy. If your loss stems from a named excluded peril, your homeowners policy may not respond.

Theft and vandalism

Report theft to the police and obtain a copy of the police report. Insurers will expect documentation proving ownership and value of stolen items—receipts, bank records, pictures, serial numbers help speed settlement. For vandalism, document forced entry and damage thoroughly.

Why claims get denied (and how to avoid denial)

Common reasons for denial

• Peril excluded by the policy (e.g., flood, earthquake).
• Lack of prompt notice or failure to mitigate further damage.
• Claims stemming from gradual deterioration, wear and tear, or maintenance issues.
• Policy lapsed for nonpayment or canceled for other policy violations.
• Misrepresentation or material nondisclosure on the application (e.g., undisclosed modifications, commercial occupancy).
• Fraudulent claims or inflated documentation.

How to reduce risk of denial

Read your policy and keep it current. Report damage early, mitigate further harm, document thoroughly, and be truthful. If you’re unsure whether a peril is covered, ask your agent before a loss occurs; proactive endorsements or separate policies (flood, earthquake) can avoid painful surprises later.

Valuation and settlement: ACV, RCV, and recoverable depreciation

Actual cash value (ACV) explained

ACV pays replacement cost minus depreciation. For example, if a 10-year-old water heater is destroyed and its replacement cost is $1,200 but it has depreciated $600, ACV settlement would be $600. ACV is common for personal property and certain older building components.

Replacement cost value (RCV) explained

RCV pays the cost to repair or replace without deduction for depreciation, subject to policy limits and terms. Many policies pay RCV in two stages—an initial payment based on ACV, then the recoverable depreciation upon proof of replacement or repair (like contractor invoices).

Extended and guaranteed replacement cost

Extended replacement cost increases the policy limit by a percentage if rebuilding costs exceed limits (useful with rapidly rising construction costs). Guaranteed replacement cost (rare and more common on high-value policies) obligates the insurer to fully replace the home regardless of cost—subject to precise policy language and endorsements.

Deductibles and special deductible types

Flat deductibles

A flat deductible is a set dollar amount (e.g., $1,000) subtracted from the loss payment. If your loss is $10,000 and your deductible is $1,000, the insurer pays $9,000.

Percentage deductibles

Some policies, especially in hurricane-prone areas, use a percentage deductible based on dwelling limit (e.g., 2% of the dwelling limit). For a $300,000 dwelling limit and 2% deductible, the policyholder must cover the first $6,000 of a covered wind or hurricane loss.

Named storm or hurricane deductibles

These are activated only for specific perils like hurricanes or named storms and are often percentage-based. Know which deductibles apply to wind/hail or hurricane events and plan mitigation accordingly.

Appraisal, supplements, and dispute resolution

The appraisal process

If you and the insurer disagree on the value of a loss, many policies include an appraisal clause. Each side selects an appraiser and those appraisers choose an umpire if they can’t agree. The appraisal focuses on the amount of loss—not on coverage disputes. Appraisal results are binding if both sides agreed to the clause.

Supplemental claims

Sometimes hidden damage emerges during repairs. Submit supplements promptly with documentation—photographs of the hidden damage, contractor affidavits, and itemized invoices. Insurers typically handle supplements but may request additional inspection or documentation.

If negotiation fails—mediation, arbitration, litigation

Start with internal appeals and request a detailed explanation if a claim is denied. If unresolved, options include hiring a public adjuster, requesting mediation, binding arbitration (if in your policy), or filing suit. Legal action should be a last resort; evaluate costs, statute of limitations, and likely outcomes with an attorney experienced in insurance law.

Special issues for landlords and tenants

Landlord claims

Landlord (dwelling) policies generally cover the building and the landlord’s personal property used to service the rental (appliances). Rent loss (Rents Receivable or Loss of Rental Income) coverage can reimburse lost rent during repairs. Keep leases, rent rolls, and proof of lost income handy for claims.

Tenants and renters insurance

Tenants should rely on renters insurance for personal property loss and liability. A renters policy does not cover the building—only the tenant’s belongings and certain liability exposures. Encourage tenants to carry renters insurance and require it in leases where appropriate.

Short-term rentals and Airbnb considerations

Hosting short-term rentals can affect coverage. Many standard homeowners policies exclude business activities; hosts should check endorsements or purchase specialized short-term rental insurance. Platforms like Airbnb may provide host protections for certain claims but often have limits and conditions—don’t rely on platform protection as a substitute for proper insurance.

How claims affect premiums and CLUE reports

Premium increases and claims history

Insurers consider claims when setting premiums. A single small claim might have minimal impact; repeated or severe claims often lead to higher premiums, nonrenewal, or cancellation. Consider the cost-benefit of filing small claims versus paying out of pocket to avoid rate increases.

CLUE (Comprehensive Loss Underwriting Exchange)

CLUE reports record claim history and are used by insurers to assess risk. They typically include five to seven years of information and can affect insurability and rates. Review your CLUE report for errors and dispute inaccuracies promptly through your insurer and to LexisNexis, the company that maintains CLUE.

Hiring help: public adjuster, contractor, or attorney?

When to hire a public adjuster

Consider a public adjuster when the claim is large, complex, or denied; when the insurer’s estimate omits items; or if you lack time. Public adjusters know how to document losses and negotiate. Confirm the adjuster is licensed and get a clear contract describing fees and responsibilities.

Choosing a contractor and avoiding repair fraud

Select licensed, insured contractors with strong references. Beware of storm-chasing contractors offering quick, high-pressure deals; require written estimates, a clear scope of work, and proof of insurance. Avoid paying the full price up front and insist on lien waivers after payment.

Insurance attorneys

If the insurer denies a valid claim or lowballs a settlement and negotiations stall, consult an attorney experienced in insurance disputes. Attorneys can explain statutory remedies, bad faith claims, and litigation strategies. Remember, legal action is expensive and time-consuming—use it when justified by the claim’s value and circumstances.

Typical claim timeline and what to expect

Timelines vary by claim size, complexity, and local regulations, but a general sequence looks like this:

• Day 0–2: Emergency action, mitigation, and insurer notification.
• Day 1–7: Company assigns adjuster; initial inspection scheduled.
• Day 7–30: Adjuster completes estimate; initial payout (ACV or emergency funds) may be issued.
• Day 30–90: Repairs commence; supplements filed as hidden damage appears; recoverable depreciation paid after proof of repairs (RCV claims).
• 90+ days: Complex claims may take months—especially those involving code upgrades, litigation, or contractor shortages.

Be patient but persistent. Keep a claim file and maintain contact with your adjuster and contractor.

How to negotiate an insurer’s estimate

Gather objective documentation

Obtain multiple contractor estimates, supplier invoices, and photos that justify higher repair costs. Use reputable national cost databases (like Xactimate or RSMeans) if available. Present discrepancies clearly and ask the adjuster to revisit the estimate with your supporting documentation.

Negotiate respectfully and keep records

Professional, organized negotiation is more effective than emotional confrontation. Request clarifications in writing and seek escalation to a claim supervisor if necessary. If the insurer refuses to adjust, consider appraisal or external mediation.

Hidden damage and mold: documenting latent issues

Hidden damage often surfaces during demolition—rotten framing, mold growth, compromised insulation. Document the discovery process: take photos before removing materials, keep samples if safe, and obtain contractor affidavits that describe the hidden damage and why it was not evident initially. Submit supplements with this documentation and request additional inspections if the insurer disputes the findings.

Preventing future claims and lowering premiums

Mitigation and risk reduction not only protect your home but also lower premiums. Common cost-saving steps:

• Install and maintain smoke and carbon monoxide detectors, smart leak detectors, and sump pumps with battery backup.
• Upgrade old electrical panels, furnaces, and plumbing where needed to reduce liability for claims related to failing systems.
• Improve roof condition and secure loose siding to mitigate wind and hail damage.
• Bundle home and auto policies, increase deductibles thoughtfully, and ask insurers about discounts for security systems and updated wiring or plumbing.

Mistakes to avoid when filing a claim

• Delaying notification: prompt reporting prevents disputes over timeliness.
• Failing to mitigate: not protecting the property after a loss can be fatal to a claim.
• Throwing away damaged items before documenting them: photograph first, then dispose if necessary for safety.
• Accepting the first low offer without review; always compare with contractor bids and receipts.
• Signing away rights: be cautious about documentation that limits future claims or assigns benefits without understanding consequences.

Fraud and scams: how criminals exploit claims

After major storms, phishing and fraudulent contractor schemes increase. Common scams include inflated repair invoices, unnecessary repairs, identity theft via fake adjuster solicitations, and pressuring you into rapid signing of releases. Verify credentials: call your insurer directly to confirm adjuster identities, check contractor licenses with the state, and refuse to sign contracts that you don’t fully understand.

Practical checklists: what to have ready for a claim

Immediate checklist

• Ensure safety, call emergency services if needed.
• Stop further damage where safe (shut valves, cover openings).
• Call insurer and obtain claim number.
• Photograph and video damage extensively.
• Collect receipts and list damaged personal property.

Documents to gather for your claim file

• Policy declarations page and endorsements.
• Photos and videos with timestamps.
• Receipts, invoices, serial numbers, appraisals of major items.
• Police/fire reports if applicable.
• Contractor estimates, repair invoices, and proof of payment.
• Mitigation receipts (hotel, emergency repairs).
• Correspondence with insurer—emails, letters, notes from phone calls.

Frequently asked questions

How long does an insurer have to pay a claim?

Timelines vary by state and insurer. Many states regulate claim handling timeframes (for example, a specified period to acknowledge, investigate, and resolve claims). Check your state insurance regulations and your policy for applicable timelines, and keep detailed records of communications.

Will my rates go up after a claim?

Possibly. Insurers price risk using claims history among other factors. Frequent or large claims typically lead to higher premiums, while one small claim may have a limited impact. If worried about rate increases, discuss options with your agent, including whether it’s preferable to pay small losses out of pocket.

What if the insurer says the damage was pre-existing?

Document the timeline: photos, maintenance records, and recent inspection reports can rebut pre-existing condition claims. If the insurer refuses to accept documentation, escalate the claim internally, consider a public adjuster, or consult an attorney if significant coverage is at stake.

Can I hire my own contractor or must I use the insurer’s recommended vendor?

You can hire your own contractor. Insurers may recommend preferred vendors, but you retain the right to choose who performs repairs. If using your own contractor, provide their estimates to the adjuster and ask how any differences will be handled.

Special recommendations for landlords and real estate investors

Landlords should maintain up-to-date leases requiring renters insurance, track rent rolls, and include landlord-friendly endorsements (loss of rents coverage). For multifamily or mixed-use investments, maintain separate policies for liability, building, and commercial exposures and document routine maintenance to avoid coverage disputes about neglect or wear-and-tear exclusions.

Claims are stressful, but preparedness, clear documentation, and calm persistence go a long way. Keep your policy accessible, inventory personal and landlord property periodically, invest in risk-reducing upgrades where cost-effective, and review your coverage annually to ensure limits reflect rebuilding costs. If a claim becomes contentious, escalate professionally—public adjusters, contractors, and attorneys exist to help resolve disputes. Handled methodically, most claims end in satisfactory repair and replacement that protects your investment and restores normal life.