Module 6 of 7 · Beginner · 7 minutes
Insurance Claims and Hiring
Learn what home insurance usually covers, how to document a loss so it gets paid, and how to hire a restoration company you can trust.
What You Will Be Able to Do
- Tell covered sudden damage from usual exclusions like slow leaks and floods
- Document damage so your claim is easy to prove
- Check a restoration company’s license and certifications yourself
- Read a work authorization and avoid signing an assignment of benefits under pressure
- Check a restoration estimate line by line
Lesson 1
What Insurance Usually Covers
Most homeowners policies cover water damage that is sudden and accidental, like a burst supply line. They usually exclude slow leaks, wear and poor upkeep. Flooding from outside needs a separate flood policy.
Mold coverage is often capped at a low dollar limit. Sewer backup is often left out unless you added a backup endorsement. Your own policy wording always decides, so read it or ask your agent.
Key Points
- Sudden and accidental damage is usually covered
- Slow leaks and outside floods usually are not
- Sewer backup often needs its own endorsement
Lesson 2
Document Everything
Before you clean, take a slow video and wide photos of every damaged room. Then shoot medium and close shots. Keep the failed part that caused the loss.
List every damaged item with its age, cost and where you bought it. Keep every receipt. Log every call with the date, the name and what was said, then confirm it by email the same day.
Key Points
- Video and photos first, then cleanup
- List items with age, cost and where you bought them
- Log every call and confirm it by email
Lesson 3
Renters and Condo Owners
In most rentals, the landlord fixes the building, including leaks and the mold they cause. Your belongings are usually covered only by your own renters policy. Report every leak and mold spot in writing, with photos and a date.
In a condo or co-op, your governing documents and the master policy decide who owns which pipe and who pays. The association usually handles common pipes and the structure. A unit owner policy fills the gaps.
Key Points
- Landlords usually fix the building and the mold
- Your belongings need your own policy
- Condo documents decide who owns each pipe
Lesson 4
Choosing a Restoration Company
Look up the contractor license yourself on your state’s public lookup before work starts. Ask which IICRC certifications the lead technician holds. Get a written scope and ask for a daily moisture log on any drying job.
Call two or three companies if you can. Walk away from anyone who wants a big deposit or pushes you to sign on the spot. You can use the directory to find specialists near you.
Key Points
- Check the license yourself before work starts
- Ask about IICRC certifications and a daily moisture log
- Walk away from high pressure at the door
Lesson 5
What You Sign Matters
A work authorization lets a company start work and is a promise to pay. An assignment of benefits hands the company rights in your insurance claim. A direction to pay only sends the checks to the contractor.
Read every page. Ask what you will owe if insurance pays less than the bill. Never sign an assignment of benefits under pressure. Take a photo of every page you sign.
Key Points
- A work authorization is permission to work and a promise to pay
- An assignment of benefits hands over rights in your claim
- Photograph every page you sign
Lesson 6
Reading an Estimate
A restoration estimate is a list of tasks, each with a quantity and a unit price. Check that every quantity matches your home. Compare room sizes to a tape measure.
Equipment is billed per piece per day, so match those days to the drying log. Look for missing items as hard as you look for padding.
Key Points
- Each line is a task, a quantity and a unit price
- Match equipment days to the drying log
- Look for missing items, not only extra ones
Claim and Hiring Checklist
Check What You Learned
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