How to file a homeowners insurance claim

Facing property damage and loss can be devastating, both financially and emotionally.

Homeowners insurance limits the damage to your wallet, but you'll need to notify your insurance company and file a claim to be properly reimbursed.

Here's what you need to know about filing a homeowners insurance claim, including what information you need to provide, how you'll be paid and when it's worth submitting a claim. 

Here's how the process works: 

1. Assess the situation and prevent further damage

"You need to remedy anything immediately to minimize the loss," says Ted Olsen, vice president of human capital development at Goosehead Insurance. "Let's say a pipe breaks and water is coming into your house and damaging the floors. Your first step should be to turn the water off." 

Once the problem is under control, start taking videos and photos to document the damage. You should also create an inventory of items that have been damaged or stolen.

2. Contact your insurance company

You can usually file a claim with your agent or on the company's website. Some insurers, including top picks like Lemonade and Nationwide, allow you to file a claim through a mobile app.  

You'll need to provide your contact information, policy number and details about the incident — including the date and suspected cause.

An adjuster assigned to your case will likely have follow-up questions and request a home visit.

3. Keep records and receipts 

As soon as you contact your insurance company, start tracking your interactions. Save information for easy reference, like your claim number and the adjuster's email and phone number.  

Many costs may be reimbursable — including emergency repairs and accommodations while your house was uninhabitable — so hold onto those receipts.

4. Get quotes from local contractors

Reach out to several licensed contractors in your area for a sense of repairs should cost and what a reasonable settlement would be. Don't schedule any repairs until your insurer approves your claim, however.

5. Get your settlement amount and schedule repairs

Once the adjuster has assessed the damage and approved a settlement amount, you should receive a check covering repairs and replacements. You may get more than one payment — the first based on the claims adjuster's estimate and a second one after the contractor has completed the job and given you their bill.

If your claim is approved, you should receive one or more checks or electronic payments to cover repairs and damaged or stolen property.

If you have a mortgage, payment for property repairs could be sent to your lender, who would typically place the funds in your escrow account and release them as repairs are completed.

If you have replacement cost coverage, you should get an initial check for the item's actual cash value and then another once you buy replacements and submit your receipts. This process is called claiming recoverable depreciation.

You may receive a separate check to cover hotel rooms, food and additional living expenses while repairs are underway.

Filing a claim isn't the right move for every scenario, Olsen said. The first step is to make sure the damage is covered by your policy — normal wear and tear isn't, and neither is flooding that comes from outside the home.

You should also review your policy's deductible, which can be a flat dollar amount or a percentage of your home's insured value. If the cost of repairs is less than the deductible, Olsen says, it's not worth filing a claim. Your insurance won't pay to help fix your home and it could cause your rates to go up.  

"If it's just a little bit over your deductible, I would also argue against filing a claim," he added.  

Homeowners insurance premiums can go up after a claim, but it depends on the circumstances.

Claims due to natural disasters or other things out of your control may not increase your rates as drastically, according to Olsen.

"Storm damage may not increase your premiums at all," he said, "while a theft or a pipe bursting could increase your costs considerably."  

On average, home insurance premiums increase between 7% and 10% after a claim, according to Policygenius.

At CNBC Select, we work with experts with specialized knowledge and authority based on relevant training and/or experience. For this story, we interviewed Ted Olsen, vice president of human capital development at the insurance agency Goosehead.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every homeowners insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of homeowners insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best homeowners insurance.

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