Thursday, June 16, 2022

Do Home Insurance Claims Follow You

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Do Auto And Homeowners Insurance Companies Share My Information About Claims And Policies

Homeowners Insurance Claim: An In-depth Explanation

Yes. There are specialty consumer reporting agencies that collect information about the insurance claims you have made on your property and casualty insurance policies, such as your homeowners and auto policies. They may also collect driving records.

Insurance companies use information in these reports to choose the types of policies they offer you and the premiums you pay.

Just like with the big three consumer reporting agencies Experian, Equifax, and TransUnion you can get free copies of your reports every 12 months from many of the specialty consumer reporting agencies. Other specialty consumer reporting agencies may be able to charge you a fee for your report.

Keep in mind that not every agency will have information on everyone. You have to request the reports individually from each reporting agency. Weve put together a list of some of these specialty consumer reporting agencies, along with some information about how you can obtain copies of your reports.

A consumer reporting agency, including a specialty agency, must also give you a free copy of your consumer report upon request if you have received an adverse action notice.


You have the right to get a free report from the consumer reporting agency identified in an adverse action notice. Review the report to see what information the consumer reporting agency has on file about your insurance history. You can then ask for corrections of any errors in the report.


Home Insurance Claim Mistake No : Waiting

Tim Felks, head of property claims at Farmers Insurance, says another mistake is waiting to file a claim. Damage doesnt get better with time, he says. Reporting a claim as soon as possible can help get repairs going sooner, lessening the time the insured is dealing with the repair process.

You may have up to one year to file a claim . But Felks says theres no benefit to waiting. If your house gets hit by a tornado or singed by a wildfire, dont wait.

Other Details Insurers Know About You

In addition to claims your insurer has paid, claims reports include:

  • Your vehicle information

  • Claims you made that didnt result in a settlement

  • Claims that were denied

  • Claims made by a prior policyholder, such as the former owner of your home, if they increase the chances of future damage

  • Inquiries about damage, even if you didnt file a claim, where allowed. Twenty-two states ban home insurers from treating inquiries as claims, according to the Rutgers Center for Risk and Responsibility.

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In The Event Of A Disaster Understand The Procedures And Your Claim Responsibilities

Homeowners + Renters Insurance


    A violent storm damages your house. A grilling accident leaves your guest injured. A burglar breaks in. When an unfortunate event strikes close to home, you might need to file a claim with your insurance company. As part of the contract between you and your insurer, a claim against your homeowners policy comes with rules and procedures that both your insurer and you must follow.

    What Reasons Could Your Home Insurance Claim Be Denied

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    Filing a claim does not automatically mean it will be accepted. There are many reasons a it can be denied, including :

    • Lack of coverage : You may not have it for a specific type of claim that you are submitting for.
    • Lack of proof : You need to show you possessed items and damage was caused. If you cant, some or your entire claim could be denied.
    • Uninsured peril : There are certain perils that are not included such as water damage, flooding, earthquakes and other weather events. These can be added separately.
    • Poor maintenance : If damage is a result of neglected maintenance, it can be denied. For example, if you have roofing issues and dont get them repaired and your roof collapses, you may be on the hook for the repairs.
    • Intentional damage : Any intentional damage caused by the owner will result in a denial.

    Other reasons it could be denied is if you lie to your insurer on your application or you are late on payments.

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    Make An Inventory List

    If your personal property gets damaged, you’ll most likely need proof of your loss to get reimbursed. A home inventory list can help you remember all the items in your home if your home gets damaged. When creating a list of your belongings, you’ll need details like the value of the item, which can help your settlement offer from being lowballed. When it’s time to start your home inventory, we recommend including the following information for all of your belongings:

    • The make, model and serial number.
    • Receipt .

    Make Regular Policy Reviews And Comparisons

    No matter what initial price you’re quoted, you’ll want to do a little comparison shopping, including checking for group coverage options through credit or trade unions, employers, or association memberships. And even after purchasing a policy, investors should, at least once per year, compare the costs of other insurance policies to their own. In addition, they should review their existing policy and make note of any changes that might have occurred that could lower their premiums.

    For example, perhaps you have disassembled the trampoline, paid off the mortgage, or installed a sophisticated sprinkler system. If this is the case, simply notifying the insurance company of the change and providing proof in the form of pictures and/or receipts could significantly lower insurance premiums. Some companies have credits for complete upgrades to plumbing, electric, heat, and roof, says Van Jura.

    Loyalty often pays. The longer you stay with some insurers, the lower your premium can become, or the lower your deductible will be.

    To know if you have enough coverage to replace your possessions, make periodic assessments of your most valuable items, too. According to John Bodrozic, co-founder of HomeZada. a home maintenance app, Many consumers are under-insured with the contents portion of their policy because they have not done a home inventory and added the total value to compare with what the policy is covering.

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    Home Insurance Claim Mistake No : Failing To Maintain Your Property

    Home insurance is for unexpected damage, not problems that could have been dealt with.

    Neglecting to maintain your home can lead to problems that wont be covered by home insurance. For example, damage from a water pipe that suddenly bursts is covered. But a roof leak that you dont fix could be denied because you didnt take action to stop damage.

    Not noticing and reporting a potential claim, like a slow leak, can lead to a claim denial, says Sarah Loy, an agent with American National Insurance in Las Vegas.

    Home Insurance Claim Mistake No : Poor Communication

    What Your Insurance Company Doesn’t Want You To Know Regarding Your Insurance Claim

    Most home insurance claim mistakes are the result of poor communication, according to Tim Barziza, a senior vice president at Chubb. When filing a claim, homeowners can oftentimes be unclear when describing the damage to their property, he says.

    Poorly communicated claims by the homeowner typically result in delays, says Barziza, which can bog down the entire claims process. He recommends homeowners be as clear as possible about the damage when reporting the claim.

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    Stay On Top Of Your Claim

    Do not let your claim fall by the wayside. Your insurer should resolve the process in a timely manner. Follow up around once a week, and have your claim number and your adjuster’s name ready. Be aware of any deadlines, required forms or other actions. Failing to keep up with your obligations could jeopardize your entire claim.

    Do: Ensure You Receive A Warranty

    Getting your home repaired after unforeseen disaster can put your family at ease and get your life back on track. But youll want to make sure that a repair job on your home comes with a warranty.

    For example, if your home has a lot of window glass damage, make sure you receive a warranty for your glass repair services.

    A strong warranty against seal failure, for example, will ensure you dont have to pay to have the work completed again in a few years when your insurance company isnt paying for it, says Patterson.

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    Personal Liability For Damage Or Injuries

    Liability coverage protects you from lawsuits filed by others. This clause even includes your pets! So, if your dog bites your neighbor, Doris, no matter if the bite occurs at your place or hers, your insurer will pay her medical expenses. Or, if your kid breaks her Ming vase, you can file a claim to reimburse her. And if Doris slips on the broken vase pieces and successfully sues for pain and suffering or lost wages, you’ll be covered for that, too, just as if someone had been injured on your property.

    Off-premises liability coverage often doesn’t apply for those with renter’s insurance.

    While policies can offer as little as $100,000 of coverage, experts recommend having at least $300,000 worth of coverage, according to the Insurance Information Institute. For extra protection, a few hundred dollars more in premiums can buy you an extra $1 million or more through an umbrella policy.

    To Claim Or Not To Claimthat Is The Question

    Homeowners Insurance: When Do You File A Claim?

    To claim or not to claimthat is the question. To figure out if it makes financial sense to file an insurance claim you need to do a bit of research and a bit of math.

    First the math: An obvious rule is dont file a claim if youre sure the damage is less than your deductible. If it is, you wont recover a dime from your insurer but the claim goes on your record and may put you in a higher risk/rate category even if you didnt collect any benefits.

    If youre not sure how much the damage is try and figure it out before filing a claim but dont wait too long. If you wait too long after a loss to notify your insurer the insurer may complain that you prejudiced their interests by failing to notify them promptly. They may even deny the claim on that ground.

    More math: If the damage is less than a few hundred above your deductible again probably not worth filing. Pay it out of pocket. Yes its unfair to be penalized for using the insurance youve paid for. But because most states allow insurers to freely penalize their customers for filing claims its up to you to protect yourself. Some states do limit the amount an insurer can surcharge you.

    Now the research: Ask your agent point blank how much will my rate go up if I file one, two or more claims? Does it matter how far apart they occur? Write down the answers and keep them with your insurance policy for future reference.

    Now you can make an educated decision.

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    How Long Does It Take For An Insurer To Pay A Claim

    Insurance companies are usually expected to pay or deny claims within 90 days of the date the loss was reported.

    “This time limit can be extended if the insurer requests information allowed under the policy, such as a proof of loss, recorded statement or examination under oath,” notes Shacket. “If 90 days have passed and your insurance company still hasn’t paid, your only recourse is to file a lawsuit. If you choose this option, the claim can be settled within weeks or it can take years.”

    Every state can set its own rules for the deadline by which an insurance company can accept or deny a claim.

    “In California, insurance companies have 15 days to acknowledge a claim,” Worters points out. “Once acknowledged and all documentation and proof have been received, they have 40 days to approve or deny the claim. If a settlement is reached, they have 30 days to make the agreed-upon payment.”

    In Florida, meanwhile, insurance carriers have 14 days to review and acknowledge receipt of communication regarding a claim, according to Espinosa.

    In South Carolina, insurance companies are granted a “reasonable” amount of time to either deny or payout your claim.

    In North Carolina, insurance companies are required to acknowledge receipt of your claim within 30 days, but there’s no set time frame on when they must settle because “each claim is different and the length of time to settle may vary,” the state says.

    You May Receive Multiple Checks

    When both the structure of your home and your personal belongings are damaged, you generally receive two separate checks from your insurance company, one for each category of damage. If your home is uninhabitable, you’ll also receive a check for the additional living expenses you incur if you cant live in your home while it is being repaired. If you have flood insurance and experienced flood damage, that means a separate check as well.

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    Does Home Insurance Go Up Every Year

    In most cases, both your annual property tax and your yearly insurance coverage will increase each year. Insurance providers raise the cost of coverage to keep up with the increasing cost to repair or replace your homedue to inflation. The age of your home will also affect the price of your coverage.

    Dont: Allow A Generalist To Do The Job

    Tricks Insurance Companies Use to Deny Your Claim

    When it comes time for repairs, the last thing you need is shoddy work from a self-proclaimed jack-of-all-trades, especially since your home may have more damage than you are even aware of.

    After a hailstorm, if you have damage to your window glass, youll also likely have damage to your roof, says Larry Patterson, owner of Glass Doctor of North Texas. Your insurance company may tell you they have one person who can fix both types of damage, but be wary of this.

    A jack-of-all-trades may know how to fix a window, but he likely wont have the expertise of a roofing expert. Therefore, find experts that know what theyre doing, and will be covered by your insurance company. This might mean going back and forth with your policy holder to find qualified professionals, but itll be worth it in the long run.

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    Is Homeowners Insurance Public Record

    Yes, sort of. Insurance claims are public record, but only to certain parties.

    The insurance company and the policyholder can request and receive copies of claims. The other party that can request a claim is the realtor/prospective buyer for a property.

    Unrelated parties — those other than the insurer, homeowner, realtor/prospective buyer — arent privy to these documents.

    When To File A Claim Against A Homeowner

    There is no registry or legal record that will tell you what insurance company they have. So if the homeowner refuses to give the name of their insurance company, you will have to sue them to get the information. After youve learned what company theyre insured by, you should file a claim against them as soon as reasonably possible.

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    Dont: Pay A Contractor In Full Before The Work Is Completed

    Your insurance company will be paying for some, or all, of the repairs. Yes, the money wont be coming out of your pocket, but that doesnt mean the insurance company should pay for a job half-done. Be careful not to pay in full or sign on the dotted line before work is actually done to your home. Make sure there is a plan for the work being done, and get all the details in writing.

    Work with the repair contractor to set expectations, including time frame, materials selection, inspections, payments, etc., says Plante. This can prevent future headaches and ensure homeowners and contractors are on the same page.

    Home Insurance Claim Mistake No : Not Documenting The Damage

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    A failure to document damage is the No. 1 error Jason Christiansen sees in claims. Its not taking picturesdocumentation at the moment the damage is discovered, says Christiansen, the co-CEO of Young Alfred, a home insurance site.

    This can go a long way in processing the payout, says Christiansen.

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    Different Types Of Homeowners Coverage

    All insurance is definitely not created equal. The least costly homeowners insurance will likely give you the least amount of coverage, and vice versa.

    In the U.S. there are several forms of homeowners insurance that have become standardized in the industry they are designated HO-1 through HO-8 and offer various levels of protection depending on the needs of the homeowner and the type of residence being covered.

    There are essentially three levels of coverage.

    Home Insurance Claims Process

    When you suffer damage to your home, you may inform your insurance representative as soon as you can if you wish to claim. Some insurers also have an anonymous advisory line to enquire about your claim without using your personal details. This may help you to decide whether you should claim or not. Most insurance companies have claims department that works 24 hours to assist you with your claim.

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    Consider Hiring A Public Adjuster

    If you have a very large claim, you may want to turn to a public adjuster, someone who works on your behalf and represents you during the process. But be aware of fees. In some states a public adjusters fees are capped, typically at 10 percent to 12 percent of the insurance payout. In other states there are either no caps or adjusters simply charge a flat fee.

    To find a public adjuster, check with the National Association of Public Insurance Adjusters. Ask for references from past clients and look to see whether he or she has several years of experience and a state license where required.

    There are four states where no licensing is required: Alabama, Alaska, Arkansas, and South Dakota. If you live in one of those states, Diane Swerling, a principal at Swerling Milton Winnick Public Insurance Adjusters in Wellesley, Mass., suggests contacting an attorney who works with catastrophe victims to help you find a reputable adjuster.

    Tobie Stanger

    I cover the money side of home-related purchases and improvements: avoiding scams, making sense of warranties and insurance, finding the best financing, and getting the most value for your dollar. For CR, I’ve also written about digital payments, credit and debit, taxes, supermarkets, financial planners, airlines, retirement and estate planning, shopping for electronics and hearing aidseven how to throw a knockout wedding on a shoestring. I am never bored. Find me on Twitter:

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