You have a property loss. It’s time to make a claim.
Is calling the insurance company and getting a claim number enough?
Filing and managing an insurance claim is stressful and complicated. There are many steps and places to mess up. You don’t want to limp into your claim by calling a 1-800 line, getting a claim number, and then waiting to hear back. When it comes to filing and managing an insurance claim, you want to start proactive and stay proactive. You always want to take steps that put the insurance company on the clock.
Whether you manage the claim yourself or involve a professional, the claims process is on your side. There are tons of rules, laws, procedures, and requirements in place to make sure your claim gets paid in full, quickly, and is treated fairly.
You just need to leverage them. This Property Claims Methodology is for policyholders and their helpers, and it’s a roadmap for filing and managing property or homeowners insurance claims to success.
Table of Contents
File: Submit A Formal & Great Claim
A strong claim starts with formal notice — a step often overlooked in the haste to initiate an insurance claim. Instead of just dialing a 1-800 number or calling your agent and then passively waiting for a response, sending a formal notice of insurance claim creates a solid, firm foundation for your claim, it puts the insurance company “on the clock,” and is the best chance you have to get your claim to the top of priority list.
One would expect to find this straightforward advice everywhere. One would expect to find “insurance claim forms” and insurance claim filing services and tools everywhere. But it just isn’t so!
If you Google “How to file an insurance claim,” you’ll see a lot of repetitive, generic advice.
They mostly advise you to “contact your insurance company” to notify them of the claim.
For example, this US News post says, “Notify your insurance company.” Even the National Association of Insurance Commissioners (NAIC) spits the generic tip: “Notify your insurance company right away.”
Certainly, policyholders want the insurance company to get notice of the claim, and policyholders want to secure a claim number.
However, the policyholder should not consider this “filing a claim.”
Really?
Call the insurance company, get a number, and then wait?!
This is terrible advice.
The ClaimSpot Insurance Claim Methodology calls for a formal, take-charge filing that creates a solid foundation to compel the insurance company to take notice of the claim. This should:
- Be In Writing: If it’s not in writing, it doesn’t exist.
- Tracked with Proof: Sent with tracking and delivery confirmations
- Asserting Your Rights: Articulate your expectations that the insurer will meet timelines
When your insurance claim starts like this, you can be confident that your claim is not just another number. You’ve set a professional tone that demands attention. And you’re set up perfectly for the next step…
Followup: Document & Keep The Insurer On The Clock
Submitting your insurance claim and getting a claim number is the first step in a long journey. Getting a homeowners or property insurance claim to the finish line will require extensive communication, documentation, and collaboration with many stakeholders.
The #1 thing to remember is this: Keeping putting the ball in the insurance company’s court and keep the insurance company “on the clock.“
The Clock
“The clock” is an enormous advantage for policyholders in the insurance claims process.
Every state has a pile of laws and regulations requiring insurance companies to move claims swiftly. Insurance companies pay very close attention to these legal timelines. They use software and services to stay current. Policyholders should aim to be just as efficient with timelines as the insurance companies, and always angling their communications and efforts to put the insurance company “on the clock.”
Here are some examples:
- Louisiana: Must begin adjusting claim “within 14 days” of receiving a claim (La RS 22:1892)
- Texas: Must respond within 15 days after receiving your claim in writing (TX Insurance Code §542.055)
- California: Must provide a “complete response based on the facts” within 15 days (Cal Code Regs 10 §2695.5).
One provision in Florida goes so far as to require “acknowledge receipt” of every single claim communication “within 7 days.” F.S. §627.70131(1)(a).
The clock is on the policyholder’s side, and the policyholder should 100% use it, all the time.
This means:
- Correspond in Writing: Always in writing
- Refer to State Laws: Refer to the state timelines specifically, noting you expect compliance
- Track, Track, Track: Track every communication and have proof of delivery
Top 5 Insurance Claim Followup Mistakes
You can find a million blog posts with instructions on how to document your insurance claim best. It can all be quite overwhelming. You’re going to see a lot of documents and communication, and seeking perfection is a tall order.
As the late Charlie Munger advised, “Avoiding stupidity is easier than seeking brilliance.”
In this spirit, here are the Top 3 Mistakes To Avoid.
#1) Not Keeping A Paper Trial of Communications
The very biggest error is being sloppy when communicating with the insurance carrier. The insurance company will cycle through a ton of contacts during the claim. You’ll get an agent in-take the claim, different agents communicating about the status of claims, claims adjusters will be hired and switched out multiple times, there will be experts and contractors, and the list goes on and on. Insurance carriers require every agent and every contractor to meticulously log every single communication event, and they use software to generate confirmatory letters mailed out to you protecting their rights. It’s a huge error to be out-matched here. You need to confirm everything in writing, you need to keep a paper trial, and you need to actually turn this into your advantage. As per the last section, remember that all of the communication timelines and requirements are on your side. Use it!
#2) Not Fully Documenting Your Losses
The second one is sneaky because it will feel like you’re doing a good job here until something unexpected comes up and you realize you missed something. Every little corner of the claim needs documentation, and it should be thorough. If you’re not good at this, get help. If you’re not an expert (i.e. you’re not a contractor), get help. Here’s a short list of things to think about:
- Photograph Everything: Photograph your damages, but take pics of things all over, get everything captured.
- Statements: Get statements from witnesses, get statements from peopel who provide you documentation, etc.
- Contents Details: Make a list of contents and get really, really detailed. Maybe you have done an inventory before the loss and kept purchasing documents (consider HomeZada, for example). If not, create a detailed inventory list and research each item.
- Bills, Invoices: Everything you’re charged for, whatsoever, keep it.
- Estimates: Get contractor estimates or replacement estimates.
- Expert Reports: Get experts to take a look and give you reports.
#3) Accepting, Acknowledging, or Agreeing Too Soon
The last mistake is subtle: be very intentional when you agree to, accept, or acknowledge anything. Never say “uh huh” unless you know it for absolutely certain. You’ll need to give your statements about your experience and what you can be a witness to, but property claims are complicated affairs, and the truth is that you’re not likely an expert who can affirmatively and definitely attest to the scope and cost of your damages. You should always rely on this. Be cooperative, but until you’re absolutely sure and ready to agree to something, you should always rely on a statement somewhat like this, “This is what I personally have witnessed and know, but I’m not an expert in xyz and cannot confirm the scope, cause, extent, and cost of xyz beyond what the experts and professionals conclude.“
Escalate: Resolve Issues & Protect Your Rights
Sometimes, claims hit roadblocks, and escalation is unavoidable. You may need to escalate your entire claim or just a portion of it. In any event, escalating your insurance claim is a matter of protecting your rights and continuing to demand that the insurance company meet its duties to you.
Here’s an overview of 3 common escalation paths.
#1) Requesting Internal Review
This is a clever path. It’s not likely to work, but it will at least put additional pressure on the insurance company to formalize its position against the claim. In a best case scenario, it will resolve or identify simple misunderstandings or errors. In a worst-case scenario, the insurance company double-downs and formalizes its position against the claim, which can help in further escalation maneuvers. In this path, the policyholder requests an “internal review” of the claim.
#2) File State Insurance Commissioner Complaint
If you think the insurance carrier or its agents is acting poorly or not fulfilling its obligations, policyholders can file a complaint with the insurance commissioner’s office. Every state has a complaint filing process. The insurance commissioner office may intervene on your behalf, or at the very least, will be an additional pressure point for the claim, and an additional documentation step.
#3) Legal Action
Legal action is always a last resort, but honestly, with insurance carriers, it’s sometimes the only path forward. Insurance companies have so much power and leverage in an insurance claims matter. It’s extremely common that legal action is the only way to get an insurance carrier to budge. Many law firms and attorneys specialize in representing policyholders against insurance companies on a claim. Counsel will digest your situation and help push the insurance company to a more favorable resolution.
File > Followup > Escalate Method Works
This methodology for filing insurance claims not only empowers you to handle your claims proactively but also ensures you are well-prepared to escalate matters when necessary. Remember, starting strong with a formal claim, maintaining momentum with diligent follow-ups, and knowing how to escalate effectively are key to managing your insurance claims successfully.