Navigating a Homeowner’s Insurance Claim

When your home is damaged by a sudden event, you may decide to file a homeowner’s claim to cover the loss. Coverable events could include anything from exterior hail damage to interior flooding and everything in between. Your homeowner’s policy will detail coverage for a specific event.

The two things you’ll want to do immediately after a destructive event are 1) contact your insurance company, and 2) choose a building contractor to restore your home and to help you navigate the claims process—though not necessarily in that order.

Choosing a contractor

It’s wise to hire a contractor before reaching out to your insurance company. A trusted contractor can be by your side at the initial insurance adjuster’s visit to represent you and to maximize your claim. Choose this contractor carefully, as the outcome of your project, and potentially your claim, depends on it. Some things to consider:

• Make sure they are licensed by the State of Minnesota. Choosing a state-licensed contractor provides several benefits and protections to you as a homeowner.
• Select a contractor that is experienced in the insurance claims process. A savvy contractor will be well-versed in insurance industry parlance and confidently cite local codes to justify proposed work.
• Ask neighbors! Your neighbors may have experienced a similar event previously and can be a great source for recommendations.

On-site inspection

Once you’ve chosen the general contractor for your project, they’ll set up a time with you to conduct an on-site inspection to assess the damage and determine a proposed scope of work. This is your chance to ask any questions and for you and your contractor to discuss expectations to make sure you’re on the same page.

If the damage to your home affects interior spaces, testing may be required to check for the presence of lead, asbestos, and mold before work can begin. An experienced contractor will have established relationships with professionals in the various trades required for completion of your project.

Dealing with your insurer

Your first interaction with your insurer after the event will be to file a claim. You’ll want to do this as quickly after the event as possible, as a delay in notifying them can lead to rejection of your claim. You’ll also want to take every practical step to mitigate the damage—say, by calling a plumber or water remediation company in the case of a leaky pipe. Failure to do so could negatively impact your claim.

During your initial conversation with the insurance company, you’ll be assigned a claim number, which you and your contractor will reference in all correspondence, and an adjuster will be assigned to your case. 

For homeowners who are filing their first claim, and even for experienced homeowners, conversations with the insurer can be time-consuming, laborious, and let’s face it—stressful. The advantage of hiring an experienced contractor is that they have the expertise and vocabulary to effectively advocate for you with your insurer. This is especially important at the initial insurance adjuster’s visit, where the adjuster will lay out a scope of work and assign a dollar amount that they expect will cover completion of the project.

You and your contractor can dispute this amount or request supplements to it as the project progresses and the full extent of the damage is revealed. A savvy homeowner will coordinate with the contractor regarding communication with the insurer, so as not to duplicate efforts and to present a united and coherent case for the claim.

The end game

Ideally the insured (you), the insurer, and the contractor will work seamlessly together to complete the project and restore the home within an agreed-upon budget. In reality there will be some wrinkles, as the parties hammer out the particulars of what falls within the scope of work and what doesn’t—what’s covered and what is not. 

A thorough familiarity with your homeowner’s policy and an experienced contractor will help you navigate these disagreements and ensure that you get the claim your policy entitles you to.