--- title: "A Homeowner’s Guide to the Insurance Claims Process" slug: "general-process-1" description: "If your home has been damaged by fire, water, storm, theft, or another covered peril, filing an insurance claim is often the first step toward recovery. But what many homeowners don’t realize is that filing a claim is just the beginning. The process can be long, detailed, and filled with paperwork, decisions, and delays. This guide walks you through the typical insurance claim process, explains what happens at each stage, and provides tips for staying organized, informed, and protected." updated: 2025-11-21T20:33:52Z published: 2025-11-21T20:33:52Z canonical: "rallybacks.loti.com/general-process-1" --- > ## Documentation Index > Fetch the complete documentation index at: https://rallybacks.loti.com/llms.txt > Use this file to discover all available pages before exploring further. # General Process # A Homeowner’s Guide to the Insurance Claims Process ![Loti - Article - Insurance Process.webp](https://cdn.document360.io/e3e6d4bd-783c-404a-ae48-078db5956f3f/Images/Documentation/Loti%20-%20Article%20-%20Insurance%20Process.webp) *What to Expect, What to Do, and How to Stay in Control* If your home has been damaged by fire, water, storm, theft, or another covered Peril, filing an insurance Claim is often the first step toward recovery. But what many homeowners don’t realize is that **filing a claim is just the beginning**. The process can be long, detailed, and filled with paperwork, decisions, and delays. This guide walks you through the typical **insurance claim process**, explains what happens at each stage, and provides tips for staying organized, informed, and protected. ## 1. **Report the Loss (First Notice of Loss)** The process begins when you notify your insurance company that a loss has occurred. ### What to do: - Call or go online to file a **First Notice of Loss (FNOL)** as soon as possible. - Provide basic information: date of loss, what happened, what areas of the home were affected. - Request a **claim number**, which will be used to track your file. > Tip: If your loss is complex or large (like a house fire or major water damage), consider speaking to a Public Adjuster *before* filing so you can better understand how to present your loss. ## 2. **Initial Contact from the Insurance Company** Within a few days, your insurance carrier will assign an **adjuster** to your case. You may be contacted by: - A **field adjuster** who visits the property - A **desk adjuster** who handles paperwork and payments - A **claims representative** who oversees communication ### What to expect: - The adjuster will ask questions about the damage and your policy. - They may schedule a site visit and request photos or documents. - They might issue an **initial advance payment** if your home is unlivable. > Tip: Document all interactions. Keep a claims log with dates, names, and what was said. See our article about communications for more ideas too. ![](https://cdn.document360.io/e3e6d4bd-783c-404a-ae48-078db5956f3f/Images/Documentation/Loti - Damage Photos.png) ## 3. **Site Inspection and Documentation** The adjuster (or an outside Vendor) will inspect the damage in person or virtually. ### What to prepare: - A list of damaged items (for Personal Property claims) - Photos of the damage - Any estimates, invoices, or Contractor bids > Tip: Do not throw away damaged items until they’re documented—unless it’s for health and safety reasons. ## 4. **Establishing Scope of Loss and Initial**Estimate After inspection, your insurer will prepare a **scope of loss**—an estimate of what they believe it will cost to repair or replace your property. It may include: - **Dwelling coverage** (structure) - **Other structures** (detached garage, fencing) - **Personal property** - **Loss of Use** (temporary housing, meals, extra living costs) - Debris Removal**, code upgrades, or other coverage extensions** ### What to review: - Look at the line-by-line breakdown of the insurer’s estimate - Watch for missing areas, underpricing, or incorrect assumptions - Don’t sign a final Settlement unless you understand the numbers > Tip: This is a negotiation. You’re allowed to get your own estimates and submit them for consideration. ## 5. **Payment and**Depreciation The insurer may make partial payments in stages: - Actual Cash Value (ACV): What the item is worth today (includes depreciation) - Replacement Cost Value (RCV): The full cost to replace, but may be paid **after** repairs are completed You may receive an **advance**, a partial payment, or a full settlement depending on the claim type and complexity. > Tip: To recover **depreciation**, you’ll need to provide proof of completion or receipts for work performed. See our article about Depreciation for a complete breakdown with examples and more. ![](https://cdn.document360.io/e3e6d4bd-783c-404a-ae48-078db5956f3f/Images/Documentation/Loti - Permit Fees.png) ## 6. **Tracking Expenses and Supplement Requests** As the claim progresses, you may encounter **additional costs** not included in the original estimate. These are called **supplements** and may include: - Permit fees - Code upgrades - Engineering or architectural fees - Increased labor or material costs You’ll need to document these and submit them for reimbursement. > Tip: Use a simple spreadsheet to track every dollar received and spent. Insurers may require full accounting to release additional funds. ## 7. **Resolving Disputes** If you disagree with the insurer’s valuation or handling of your claim: - You can request **re-inspection** - Submit **independent estimates** - Escalate your concerns to a **supervisor** If there’s a significant gap in valuation, you may invoke your **appraisal clause** or consult a **public adjuster or attorney** for help. We have articles for each of these options to give you more detail and color for your particular situation. ## 8. **Final Settlement and Closeout** Once the repairs are completed, and all supplemental costs have been submitted, the insurer may offer a final payment and request a **release of further liability**. > Read everything carefully. Once you sign, the claim is typically considered closed. ## Tips to Protect Yourself Throughout the Process - **Communicate in writing** whenever possible - **Keep everything organized**: claim log, estimate folder, receipts, photos - **Be proactive**: don’t wait for your insurer to ask for documentation - **Escalate professionally**: if you're not getting results, ask for a supervisor - **Know your policy**: coverage limitations, exclusions, and deadlines matter - **Get help when needed**: licensed public adjusters and insurance attorneys can offer expert support ## Wrap-Up The Homeowners Insurance claim process can take months—and large losses can stretch beyond a year. You don’t need to be an insurance expert, but you do need to stay organized, informed, and involved. The more clearly you can prove what you’re owed, the smoother your recovery will be. In homeowner's insurance, a peril is an event, accident or circumstance that results in damage. There are 16 Basic Named Perils (15 in Texas) such as fire, freezing or even riots. Otherwise known as the "Cause of Loss" A formal request made by the policyholder (you) to your insurance company for coverage or payment for a covered loss. Also known as a private adjuster, public adjusters are hired by you as a homeowner to represent your own interests regarding your claims. These can range from individuals to large firms and vary in cost but usually command 10-20% of your total claim. A person or company offering something for sale. Also sometimes referred to as Coverage C in your policy. This bucket of coverage includes everything NOT permanently attached to your home or other buildings on your property. This generally includes items such as clothing, furniture, toys, jewelry, household appliances and artwork as well as some more subtle things such as cash, food and even your identity. A person or company responsible for construction work. An approximate calculation of the costs associated with a project, including labor, materials, and other expenses. The process of collecting and disposing of construction waste and debris. The downward movement of the ground caused by the weight of a structure. Your personal property and associated items generally lose value over time due to age, use and general wear and tear. Depreciation is the percentage of value lost since you first purchased the item. Some items depreciate faster than others - such as TVs - and other items don’t depreciate at all - like antiques. We calculate this percentage automatically for you based on typical categories and use, but this value can be easily edited to account for unique items and situations. The estimated value of a particular item right before it was damaged or lost. Essentially, what you could have sold that item for immediately before the incident. We estimate this automatically for you (it can be edited) and is calculated by taking the original cost and subtracting depreciation over time. Like the industry, we use a simple calc vs. compound depreciation. Ex: The original price for a 3 year old chair was $100, depreciating at 10% per year. The ACV = $100 - (30% x $100) = $70 This is the cost to completely replace or repair your lost or damaged property in "today's" dollars. If you do have this coverage, your insurance company may issue you a check based on the Actual Cash Value of an item and then its on you to prove the replacement cost is higher and get reimbursed for the difference. This can process can also be referred to as "Recoverable Depreciation" An insurance policy that provides financial protection iin the event of a disaster which covers damages to your home, personal property and other assets. These policies can also provide liabiltiy insurance, cost of living expense reimbursements and more.