A tree falls on the roof. A pipe bursts upstairs. A storm damages your siding. You discover water coming through the ceiling.
Your first reaction may be: I have homeowners insurance, so I should file a claim.
Sometimes that is exactly what you should do. But before automatically filing, it helps to understand your policy, your deductible, the extent of the damage, and what the repair may actually cost.
Homeowners insurance is an important financial protection, but a claim should still be approached thoughtfully.
Here are several things homeowners should know before filing.
1. Start by Understanding What Actually Happened
Before you can determine whether insurance may apply, identify the source and extent of the damage.
There is an important difference between sudden damage and maintenance-related problems.
For example, damage caused suddenly by a storm may be treated very differently from damage caused by a roof that has been leaking slowly for months.
The same applies to plumbing.
A pipe that suddenly bursts is different from deterioration, corrosion, or a longstanding leak that was never repaired.
The details matter because homeowners insurance policies contain specific covered events, exclusions, conditions, and limitations.
Before assuming something is covered, review your policy or speak with your insurance professional.
2. Know Your Deductible Before Filing
Your deductible is the amount you generally pay toward a covered property loss before your insurance benefits apply.
Suppose you have a $2,500 deductible and receive a repair estimate of $3,200.
Even if the loss is covered, the financial benefit of filing the claim may be relatively small.
Now compare that with a covered loss requiring $25,000 in repairs. The economics of filing may look very different.
Also pay attention to whether your policy has different deductibles for certain types of losses.
Georgia’s Office of the Commissioner of Insurance recommends that homeowners know their coverage, exclusions, and deductibles before a loss occurs. Some policies may also have separate deductibles associated with wind or hurricane-related losses.
3. Get an Idea of the Cost of the Damage
When circumstances allow, obtain a professional assessment or repair estimate so you have some idea of what you are dealing with.
You are trying to answer a simple question:
Is this a relatively small repair, or is this a substantial insured loss?
That does not mean you should delay reporting a serious loss when your policy requires prompt notification.
Georgia insurance regulators advise consumers to report claims promptly and note that policies may impose requirements regarding when insurers must be notified.
The goal is not to avoid legitimate claims. It is to understand the situation before making decisions whenever possible.
4. Document Everything Before Repairs Begin
Before damaged material disappears into a dumpster, create a record of what happened.
Take:
- Photos of the affected areas
- Wide-angle photos showing the overall room or property
- Close-up photos of individual damage
- Video when useful
- Photos of damaged personal property
- Notes about when you discovered the problem
- Copies of invoices and estimates
Keep receipts associated with emergency expenses and temporary repairs.
Georgia’s insurance regulator specifically recommends photographing or videotaping damage and keeping documentation and receipts connected to the claim.
A homeowner should ideally have a home inventory before a loss ever occurs, especially for furniture, electronics, valuables, appliances and other personal belongings.
5. Prevent Additional Damage
Insurance does not mean homeowners should simply leave damaged property exposed while waiting for an adjuster.
You may need to take reasonable temporary steps to prevent additional damage.
For example:
- Tarp a damaged roof.
- Shut off water after a plumbing failure.
- Board a broken window.
- Move belongings away from active water intrusion.
Georgia’s Office of the Commissioner of Insurance specifically advises homeowners to protect property from further damage following severe weather.
Document the condition before and after emergency measures whenever it is safe to do so.
6. Be Careful About Making Permanent Repairs Too Quickly
Emergency stabilization is one thing.
Completely rebuilding or replacing damaged areas before the insurance company has had an opportunity to inspect them can create complications.
Georgia insurance officials advise homeowners not to rush into permanent repairs before the insurance company has inspected the damage.
That is another reason documentation is so important.
Your insurer may need to determine:
- What caused the damage
- What was damaged
- Whether the loss is covered
- Whether materials can be repaired or must be replaced
- The reasonable cost of the work
For a major claim, communicate with the insurance company before authorizing significant permanent repairs.
7. Understand Replacement Cost Versus Actual Cash Value
Two homeowners can experience similar losses and receive very different claim settlements depending on their policies.
One major distinction is replacement cost versus actual cash value.
Replacement cost generally looks at the cost to replace damaged property with comparable new property, subject to the policy.
Actual cash value generally factors in depreciation.
For example, imagine that a 12-year-old item is destroyed.
Replacement cost coverage may help pay toward replacing it with a comparable item today.
Actual cash value coverage may pay based on the depreciated value of the older item.
Georgia’s insurance regulator advises homeowners to understand which type of coverage they have because the difference can significantly affect a claim settlement.
8. Don’t Assume Flooding Is Covered
This is especially important for Georgia homeowners because severe storms can bring significant rainfall.
Damage from wind-driven rain, plumbing failures, groundwater, rising water and flooding can involve very different insurance issues.
A standard homeowners policy typically does not provide traditional flood insurance for rising floodwaters.
Flood coverage generally requires separate insurance.
Georgia’s Office of the Commissioner of Insurance specifically cautions homeowners that standard homeowners insurance typically does not cover flood damage.
Do not assume that because water entered your house, the insurance treatment will be the same regardless of how the water got there.
The source of the water can be critical.
9. Keep Good Records Once a Claim Is Open
Once you file, create a claim file.
Keep:
- Your claim number
- Adjuster’s name and contact information
- Dates of conversations
- Emails and letters
- Contractor estimates
- Receipts
- Photos and videos
- Temporary housing expenses, when applicable
- Repair invoices
- Copies of anything you send the insurer
When discussing the claim by phone, it can also be helpful to make notes immediately afterward.
Georgia regulators recommend maintaining copies of correspondence and records of conversations, including who you spoke with, when the communication occurred and what was discussed.
10. Ask for Explanations in Writing
If your insurer says something isn’t covered, or the settlement is significantly different from what you expected, ask why.
Do not be afraid to ask:
Which part of my policy applies to this decision?
If a claim is denied, request a written explanation identifying the policy language supporting the denial.
Georgia insurance regulators specifically recommend asking for the applicable policy language when a dispute arises and obtaining a written explanation for a denied claim.
Insurance policies are contracts. The exact language matters.
11. Be Cautious With Contractors After Major Storms
After a major storm, homeowners can suddenly be approached by roofers, restoration contractors and other companies offering to handle everything.
Some may be excellent professionals.
Others may not be.
Avoid feeling pressured into signing contracts immediately.
Before hiring someone:
- Verify licensing or other applicable credentials.
- Check references and reviews.
- Understand exactly what you are signing.
- Ask how payment works.
- Find out whether the agreement can be canceled.
- Speak directly with your insurer when appropriate.
- Avoid signing documents you do not fully understand.
Georgia insurance officials have specifically warned homeowners to be cautious of unsolicited contractors following storms and not to sign contractor documents before understanding the arrangement and communicating with their insurer.
12. Remember That Insurance Is Not a Home-Maintenance Plan
One of the most important distinctions homeowners should understand is the difference between insurance and maintenance.
Insurance generally exists to protect against certain covered losses.
Routine ownership expenses are different.
Examples may include:
- Replacing an aging HVAC system
- Replacing worn flooring
- Routine roof maintenance
- Repainting
- Fixing normal wear and tear
- Maintaining gutters
- Replacing deteriorated caulking
- Addressing deferred maintenance
Waiting until a maintenance problem becomes significant does not necessarily turn it into an insurance event.
Regular maintenance protects both your home and your investment.
Before You File: Ask These Questions
Before filing a homeowners insurance claim, make sure you understand:
- What caused the damage?
- Is that type of loss potentially covered by my policy?
- What is my deductible?
- Is there a special deductible that applies?
- Approximately how much will the repair cost?
- Have I photographed and documented the damage?
- Do I need to take emergency steps to prevent additional damage?
- Does my insurer need to inspect the property before permanent repairs begin?
- Do I have replacement cost or actual cash value coverage?
- What documentation will my insurer require?
Protect the Home Before There’s a Problem
The best time to understand your homeowners insurance is not when water is running through the ceiling.
Review your policy periodically.
Know your deductible.
Keep a home inventory.
Photograph major improvements.
Save receipts for significant renovations and upgrades.
And when you make substantial changes to your home—such as a renovation, addition or major upgrade—consider discussing the change with your insurance professional to determine whether your coverage should also be updated.
Georgia’s Office of the Commissioner of Insurance recommends reviewing homeowners insurance needs at least annually, particularly after improvements that may affect the home’s replacement cost.
Your Home Is Both a Place to Live and a Major Asset
Homeownership involves more than making the mortgage payment.
Protecting the property’s condition, maintaining adequate insurance, documenting improvements and understanding your home’s changing value are all part of managing the asset over time.
If you’re a Metro Atlanta homeowner and haven’t reviewed your home’s value recently, a periodic property-value review can also help you understand how your home fits within today’s local real estate market.
Thinking about selling, renovating, or simply wondering what your home may be worth today? Let’s start with the numbers.
This article is provided for general informational purposes only and is not insurance, legal, or financial advice. Insurance coverage varies by policy and company. Homeowners should review their individual policy and consult their insurance agent, insurer, attorney, or other appropriate professional regarding their specific circumstances.
