Introduction
When a covered incident, such as fire, theft, or property damage, occurs, one of the most important steps in filing a homeowners insurance claim is submitting a Notice of Loss. This formal notification alerts your insurance company that a loss has taken place, and a potential claim is forthcoming. Timely and accurate submission of this notice, along with any required documentation, helps ensure your claim is processed efficiently. Understanding your responsibilities in reporting a loss—and what follows—can help prevent delays or denials in coverage.
What is a Notice of Loss?
If you experience a loss or incident that is covered under your homeowners insurance, your insurance company won’t pay unless you first file a Notice of Loss as soon as it’s feasible. By filing a Notice of Loss, you are telling the insurance company agent that you have a potential claim.
When you file a Notice of Loss, you provide the following information:
- Your name, address, and policy number
- The date, time, location, and cause of loss
- The names and addresses of any known thieves or perpetrators
- The names and addresses of any injured people
- The names and addresses of any other insured parties, including the mortgage holder
- The names and addresses of any witnesses
- Identification of any other insurance that might cover some or all of the loss
A Notice of Loss is the first of several generally necessary steps when a potentially insurable loss or incident occurs. Following are other steps you might be required to take:
- Notifying the police in the event of theft of your property
- Notifying your credit card company or bank in the event of loss of your credit card or ATM card
- Mitigating damages to property by making reasonable and necessary repairs and keeping records of repair costs
- Forwarding to the insurance company any notice, demand, summons, or complaint in the event of a personal injury or medical costs incident
- Putting together an inventory of damaged or stolen property, including descriptions of the property, evidence of actual cash values , and evidence of the financial loss you suffered
- Giving the insurance company access to any damaged property and relevant records and documents
- Filing a formal written Proof of Loss within a specified period of time
What is a Proof of Loss?
Filing a Proof of Loss is one of your duties after suffering a property loss or experiencing an insurable incident. You generally file it sometime after you make an initial Notice of Loss and when you have obtained more information and documentation. It is typically a signed, sworn statement that includes the following information:
- The time and cause of the incident or loss
- Your interest as well as that of any mortgage holders and others in any damaged or stolen property
- Identification of other insurance that might apply to the situation
- Any changes in your residence’s title or occupancy during the policy term
- The inventory with descriptions of damaged or stolen property
- The actual cash value of each item
- Any other information required by your policy
Conclusion
Filing a Notice of Loss is a critical first step in receiving benefits under your homeowners insurance policy. Following it up with a detailed Proof of Loss and complying with all required procedures will strengthen your claim and help ensure a smoother process. By staying organized, responding promptly, and working closely with your insurance company, you can protect your rights and receive the coverage you are entitled to after a qualifying event. If you are ever unsure about the process, reach out to your insurance agent or provider for guidance.
Scarlet Oak Financial Services can be reached at 800.871.1219 or contact us here. Click here to sign up for our weekly newsletter with the latest economic news.
Source:
Broadridge Investor Communication Solutions, Inc. prepared this material for use by Scarlet Oak Financial Services.
Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, legal, or retirement advice or recommendations. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on individual circumstances. Scarlet Oak Financial Services provide these materials for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
