Top 10 Mistakes to Avoid When Filing a Home Insurance Claim

Filing a home insurance claim isn’t something most of us do often. When disaster strikes—whether it’s a burst pipe, a house fire, or a break-in—you're likely already stressed and overwhelmed. Unfortunately, that's also when homeowners are most prone to making costly mistakes.

The truth is, the claims process can be complicated. It’s filled with paperwork, deadlines, and fine print that can trip you up if you're not careful. One wrong move might delay your payout—or worse, get your claim denied entirely.

So how do you make sure you handle it the right way? Let’s look at the top 10 mistakes homeowners make when filing an insurance claim—and how you can avoid them.

1. Waiting Too Long to Report the Damage

Time is of the essence. Most insurance companies have a limited window in which you can file a claim after an incident. Waiting too long can raise red flags, especially if more damage occurs during the delay.

What to do instead: Report the incident to your insurance provider as soon as possible, even if you’re unsure whether you’ll file a claim. Prompt communication shows you’re acting responsibly.

2. Not Understanding Your Policy

Many homeowners don’t read their insurance policy until something bad happens. By then, it might be too late to realize what is and isn’t covered.

What to do instead: Review your policy now—not just when disaster strikes. Know your deductibles, coverage limits, exclusions, and whether you have actual cash value (ACV) or replacement cost coverage.

3. Failing to Document the Damage Properly

If you don’t have detailed records of the damage, your insurer could dispute your claim or offer a lower payout.

What to do instead: Take clear photos and videos of all affected areas and items as soon as it's safe. Document everything—from minor water stains to destroyed appliances. Keep a log of conversations, receipts, and any emergency repairs you make.

4. Throwing Things Away Too Soon

It’s natural to want to clean up the mess, but tossing damaged belongings before your adjuster sees them can be a huge mistake.

What to do instead: Save everything, even if it's ruined, until your insurance adjuster has inspected the damage. If you need to dispose of hazardous or moldy items for safety, document them thoroughly first.

5. Making Repairs Before the Adjuster Arrives

While it’s important to prevent further damage, major repairs made before your insurance adjuster inspects your home can complicate your claim.

What to do instead: Make only temporary or emergency repairs—like covering a hole in the roof or turning off the water. Save all receipts. Wait for the green light from your insurer before doing anything permanent.

6. Not Getting Multiple Estimates

Some homeowners accept the first contractor’s bid—or the insurance company’s estimate—without question. This can lead to being underpaid for repairs.

What to do instead: Get at least two to three estimates from licensed contractors. Share these with your insurer if their initial payout seems too low. It’s your right to advocate for fair compensation.

7. Accepting the First Settlement Offer

Insurance companies are businesses, and their initial offer might not reflect the true cost of repairs. Accepting it too quickly can leave you short.

What to do instead: Take time to assess the full extent of the damage and get repair estimates. If the offer is insufficient, negotiate. You can even hire a public adjuster to help you evaluate your claim.

8. Not Keeping a Home Inventory

Trying to remember everything you owned after a fire or burglary is incredibly difficult—and insurers usually require proof of ownership.

What to do instead: Keep an up-to-date inventory of your belongings, including receipts, photos, and serial numbers. Store it in the cloud or a fireproof safe. If you don’t have one already, start one now for future protection.

9. Misrepresenting the Facts

Exaggerating your losses or omitting details might seem tempting if you’re worried about getting compensated, but it can backfire.

What to do instead: Always be honest and accurate in your claim. Insurance fraud—even unintentional—can lead to claim denial or legal trouble.

10. Assuming You’re Not Covered

Sometimes homeowners don’t file a claim because they assume the damage isn’t covered. But you might be missing out on help you’re entitled to.

What to do instead: Don’t make assumptions. Even if you're unsure, talk to your insurance provider or a licensed agent. Some damages that seem excluded might be partially covered under certain circumstances.

Bonus Tips to Make Your Claim Go Smoothly

• Stay organized: Keep a file with all your claim documents, photos, receipts, and correspondence.
• Follow up: Don’t be afraid to call your adjuster or insurer for updates. Be polite but persistent.
• Use professional language: Treat every communication like a business transaction. Keep emotions in check, even if you’re frustrated.
• Consider a public adjuster: If your claim is large or complex, hiring an independent public adjuster can help you navigate the process and advocate on your behalf.

Final Thoughts

Filing a home insurance claim doesn’t have to be overwhelming or adversarial. By knowing the common mistakes and how to avoid them, you can protect your rights, avoid delays, and increase the chances of getting the compensation you deserve.

Remember: Your home is one of your most important investments. Taking the time to file your claim correctly—and avoiding these costly pitfalls—can help you get back on your feet faster when the unexpected happens.

Stay informed, stay organized, and never hesitate to ask questions. It’s your claim and your coverage—make the most of it.