Your first duty is to know your coverage. Get out your policy and look at the dollar limits and what the policy covers and doesn't cover. Policy language is confusing. Read the policy language over and over again, until you understand what it says.

Many claims are reported incorrectly and the insurance company may deny the claim if it is reported incorrectly. Maintenance items, normal wear and tear, surface water (unless flood insurance has been purchased) and construction defects ARE NOT usually covered by most insurance policies. Examples of these not covered items include: grout that should have been replaced, roof maintenance problems (storm, hail, wind damage is usually covered), nails driven into pipes by accident, faulty design of a home, and the like. Many policies cover water damage that is only caused by a SUDDEN and ACCIDENTAL discharge of water from a plumbing system or appliance and they do NOT cover long term (or chronic) leaks. Understanding what's covered and what's not, enables YOU to properly report your claim and removes all opportunities for illegitimate denials by your insurance company.

Immediately after you know a loss occurred, notify, in writing, your agent or company representative. If you let damage fester and do not report it immediately, your claim may well be denied. Remember, chronic leaks are often not covered; sudden leaks usually are covered. Losses involving theft or crime must first be reported to the police first; then, report such losses to your insurance company.

Make a list of your damaged property and photograph or videotape the damage before making repairs.

Only make temporary repairs to protect your home and belongings until your insurer gives you authorization to make permanent repairs. The insurance company may deny your claim if you make permanent repairs before it inspects the damage. If you are not sure whether a repair is considered permanent, contact the insurance company before beginning repairs. Request, in writing, that they list the temporary repairs that they approve. The cost of these repairs and for storing personal belongings is usually covered by your policy. It is important to make only temporary repairs until permanent repairs are authorized. If the insurance will not authorize even temporary repairs, document it (taped conversations, daily log or in writing). Temporary repairs may include but are not limited to: turning off water to a busted, broken or leaking pipe so no further damage can be done, putting a plastic cover over an area of a roof that's been hail or storm damaged or anything else that helps you mitigate damage without destroying Keep all receipts. For personal property claims, you must provide evidence that you bought the replacement items. If you bought materials for temporary repairs, receipts will help you get reimbursed. You must cooperate with your insurance company and its adjuster. This means that you must allow them access to your property to investigate the claim regardless of whether or not you approve of their experts or contractors. Try to be present for all of the investigations in your home. If your state law allows, audio tape the inspections, without the insurance company's knowledge, so that you document what has occurred. You may also want to have your own contractor or other experts present. Write anything of import that occurs at insurance company inspections/investigations down in a log.

Your insurance company may require you to submit to an Examination Under Oath. This is a slick way to get your sworn statement without legal representation. Oftentimes, the insurer will then use what you say against you in order to avoid paying on a legitimate claim. While you must be honest in your sworn statement, don't volunteer anything. And, don't assume anything. If you don't know something (i.e. if you're not an engineer and do not have the professional training to determine the cause of a water leak), don't speculate. There's nothing wrong with "I don't know". If you don't know the exact date of loss, don't speculate; admit that you do not know. The average homeowner's truthful sworn statements are filled with phrases like, "I don't know", "I don't remember", I need to go through my documents to get that information", and the like. Don't feel stupid if these are your answers to questions in an Examination Under Oath, if they are truthful answers.

Once the insurance company takes your sworn statement, ask for a copy of it.

If a lawsuit is on file, you may be allowed to avoid an Examination Under Oath because it is an unfair advantage because it's like having two bites at the deposition apple because the insurance company will require sworn deposition testimony in the discovery phase.

The insurance company may require that you submit all reports and receipts regarding work done at your home. This can be a burdensome task if it could be accomplished at all. Supply what is handy and if these documents are not available or are not easily compiled, explain that to your insurance company. Should you be required to move out of your home, be sure to provide your insurer with updated contact information so they are able to reach you when necessary.

The insurance company may require that you fill out a "Proof of Loss" form. Each state varies but usually this form is sent to policyholders within 15 days after a loss is reported. Again, each state varies but usually the policyholder has 91 days to submit this form back to the insurance company. In most cases, the company will ask you to estimate the replacement cost of the household items you lost and the cost of repairing your home. Contractors, catalogs, and retailers are good sources of current price information. But, if you do not know the cost, don't guess. Be honest and say that you do not yet know but make sure you do get bids for replacement. Those bids should include all of the cost necessary to repair and replace property damaged or destroyed with like kind and quality, applicable sales tax, shipment costs, general contractor's fees should one be required (usually necessary if three or more trades are involved), interior design fees (if applicable), architectural or engineering fees (if necessary). The company will use the form to decide the value of your claim, so make your list as complete and as detailed as possible. Include photos and receipts. Be sure to keep copies for your records. But, that form is usually not what dictates the amount paid to you for repairs.

The insurance company's adjuster will prepare an estimate of the cost to repair or replace your home and any personal belongings. The insurance company's offer is usually based on this estimate. It may be much lower than your bid to repair and replace. It is important to know that an estimate is not a bid to actually perform the work required. It is at this point that much of the bad faith practiced by insurers rears its ugly head. Should you be unfortunate enough to experience this commonplace practice, start fully documenting events. You may want to produce to your insurer other bids that support your actual BID to perform the work required and attempt to get other contractors to perform the work for the amount authorized by the insurance company. Once this supporting documentation validates the bids submitted by you to your insurer, you will want to write the insurance adjuster and dispute their estimate. If insurance company delays are exacerbating the damage being done to your property or causing you other As a general rule, if only a partial payment to truly repair your home is made, you should only accept such payment if and only if you write and tell your insurer:

		their payment is woefully inadequate to cover the full scope of the repairs necessary (send your bids and supporting documentation);
		you are accepting the check only as a partial payment and await full payment; and
		permanent repairs can only be made once full and valid payment is received.

Ask your insurer if you should return the check(s) given that permanent repairs cannot be made for the sums paid. Do NOT cash any check if it contains language on the check or in an accompanying letter that indicates the sum paid represents final payment to settle the claim.

If the claim is only partially paid, you will need to decide whether or not you should up-front the money necessary to make permanent repairs. In most cases, that is not economically feasible.

If and when the insurance company pays your claim in full, you need to initiate permanent repairs, assuming those repairs will not jeopardize any on-going investigation being conducted by your insurance company. If you pocket the money and put that money elsewhere (not in the repairs), you will be cheating only yourself. If any consequential damage occurs because you did not repair your property, you will be the one paying for any and all such damage. Moreover, you may have a mortgage company to answer to if repairs were paid for but not made.

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