The Complete Homeowner's Guide to Water, Fire, and Mold Insurance Claims

Insurance Claims Don't Have to Be Overwhelming

Dealing with property damage is stressful enough without the added confusion of insurance claims. Whether you're facing water damage from a burst pipe, fire and smoke damage, or a mold problem, knowing how to navigate the claims process can mean the difference between full coverage and out-of-pocket expenses.

This guide walks you through everything you need to know about filing and maximizing your insurance claim after property damage.

Understanding Your Homeowner's Insurance Policy

Before disaster strikes, it's important to understand what your policy covers—and what it doesn't.

What's Typically Covered

Water Damage:

• Sudden and accidental water discharge (burst pipes, appliance failures)
• Water damage from firefighting efforts
• Storm-related water damage (wind-driven rain)

Fire Damage:

• Structural damage from fire
• Smoke and soot damage
• Damage to personal belongings
• Additional living expenses if you can't stay in your home

Mold Damage:

• Mold resulting from a covered water loss (varies by policy)
• Some policies include limited mold coverage

What's Often NOT Covered

• Flood damage – Requires separate flood insurance
• Gradual water damage – Slow leaks that develop over time
• Neglected maintenance – Damage resulting from failure to maintain the property
• Mold from humidity or condensation – Often excluded
• Sewer backups – May require additional rider

Action step: Review your policy now so you know your coverage before you need it.

Step-by-Step Guide to Filing a Claim

Step 1: Ensure Safety and Prevent Further Damage

Your first priority is safety. Then, take reasonable steps to prevent additional damage:

• Turn off water supply if there's a plumbing leak
• Cover broken windows or roof damage with tarps
• Turn off electricity if water is near electrical systems
• Don't enter fire-damaged structures until cleared by authorities

Important: Insurance policies require you to mitigate further damage. Keep receipts for any emergency supplies or services.

Step 2: Document Everything Thoroughly

Documentation is critical for a successful claim. Before cleaning up:

Take photos and videos of:

• All damaged areas from multiple angles
• Damaged personal belongings
• The source of the damage (if visible)
• Water lines or smoke patterns
• Serial numbers and model numbers of damaged appliances

Create a written inventory including:

• Description of each damaged item
• Approximate age and purchase price
• Current replacement cost
• Receipts or proof of purchase (if available)

Step 3: Contact Your Insurance Company Promptly

Report the damage to your insurance company as soon as possible. Most policies require prompt notification.

When you call, be prepared to provide:

• Your policy number
• Date and time damage occurred
• Brief description of what happened
• Extent of damage (preliminary assessment)
• Contact information for follow-up

Request the following information:

• Your claim number
• Name and contact for your assigned adjuster
• Timeline for inspection
• Clarification on coverage and deductibles

Step 4: Work with the Insurance Adjuster

An insurance adjuster will inspect your property to assess the damage. To prepare:

• Be present during the inspection if possible
• Share your documentation (photos, videos, inventory)
• Point out all damaged areas, including hidden damage
• Ask questions about anything unclear
• Request a copy of the adjuster's report

Tip: You have the right to get your own estimates. If the adjuster's assessment seems low, you can hire a public adjuster or independent contractor for a second opinion.

Step 5: Get Professional Restoration Estimates

Contact a professional restoration company for a detailed estimate. A thorough estimate should include:

• Assessment of all damage (visible and hidden)
• Itemized costs for mitigation and restoration
• Timeline for completion
• Scope of work in writing

Why this matters: Professional estimates often identify damage the insurance adjuster missed, which can increase your claim payout.

Step 6: Review the Settlement Offer Carefully

When your insurance company sends a settlement offer, don't accept it immediately. Review it carefully to ensure:

• All damaged areas are accounted for
• Costs are based on actual repair/replacement prices
• Nothing was overlooked or undervalued
• Depreciation (if applicable) is calculated correctly

If the offer seems low:

• Request an itemized explanation
• Provide additional documentation or estimates
• Negotiate specific line items
• Consider hiring a public adjuster if the gap is significant

Tips for Maximizing Your Claim

Keep Detailed Records of Everything

• Save all receipts related to the damage
• Document all communication with your insurance company
• Keep a log of phone calls (date, time, who you spoke with, what was discussed)
• Save copies of all submitted documents

Don't Dispose of Damaged Items Too Quickly

Insurance adjusters may need to inspect damaged items. Before throwing anything away:

• Wait until the adjuster has seen everything
• Take detailed photos of items you must dispose of immediately
• Keep samples of damaged materials when possible

Understand Actual Cash Value vs. Replacement Cost

• Actual Cash Value (ACV): Reimburses the depreciated value of items
• Replacement Cost Value (RCV): Covers the full cost to replace items

If you have RCV coverage, you may receive an initial payment (ACV) and a supplemental payment once repairs are completed and receipts are submitted.

Consider Hiring a Public Adjuster

For large or complex claims, a public adjuster works on your behalf (not the insurance company's) to:

• Document damage thoroughly
• Negotiate with the insurance company
• Maximize your settlement

Public adjusters typically charge 5–15% of the settlement amount but often recover significantly more than homeowners negotiating alone.

Common Claim Mistakes to Avoid

• Waiting too long to file – Report damage promptly
• Incomplete documentation – Photograph everything before cleanup
• Accepting the first offer – Review and negotiate if needed
• Disposing of evidence – Keep damaged items until approved
• Not reading your policy – Understand your coverage and exclusions
• Doing permanent repairs before approval – Only perform emergency mitigation until the claim is approved

How a Restoration Company Can Help with Your Claim

Professional restoration companies work with insurance claims regularly and can support your process by:

• Providing detailed damage assessments and estimates
• Documenting hidden damage with professional equipment
• Communicating directly with adjusters
• Ensuring repairs meet industry standards
• Completing work efficiently to minimize additional living expenses

Many restoration companies bill insurance directly, reducing your out-of-pocket burden during a difficult time.

Take Control of Your Claim

Filing an insurance claim after water, fire, or mold damage doesn't have to be overwhelming. By documenting thoroughly, understanding your coverage, and working with professionals, you can maximize your claim and get your home restored properly.

Don't navigate the process alone. A professional restoration company can help you document damage, work with adjusters, and get your home back to normal.

Need help with damage restoration and insurance claims? Contact us today—we work directly with insurance companies to make the process easier for you.