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Yahoo
an hour ago
- Business
- Yahoo
How to file a homeowners insurance claim
Your home is more than just four walls — it's your sanctuary and your safe space. So when something like a wildfire or tornado happens, it's normal to feel overwhelmed or even hopeless. Fortunately, that's why you have homeowners insurance. It helps you recover your losses and start rebuilding the place you've worked so hard to make your own. This embedded content is not available in your region. Learn more: Homeowners insurance: What it covers and how much you'll pay Steps to file a homeowners insurance claim When you're already dealing with an emotionally draining and stressful situation, the last thing you need is confusion around the claim-filing process. Understanding how submitting a claim works beforehand can help you become more prepared and feel confident navigating the claim process if the unexpected happens. Here are the steps you should follow when filing a home insurance claim. Step 1: File a police report (if necessary) If someone breaks into your home, takes your valuables, or causes severe damage, call the police right away and file a report. Make sure to write down the names of any officers you talk to and note the important details of the crime. This information can help back up your insurance claim. For example, if your home is vandalized and items like your laptop and TV are stolen during a break-in, your insurer will likely ask for the police report to confirm what happened and move your claim forward. Step 2: Contact your insurance company Reach out to your insurance company or agent to report what happened right away. You'll want to share information about the incident and verify that the loss is covered under your policy. If you're covered and decide to file a claim, you can typically do so online, through an app, over the phone, or by mail. If you choose to file by mail, your insurance company will send you the claim forms right away. Make sure to complete them and return them as soon as you can to help avoid any potential delays. Step 3: Gather supporting documents and media When disaster happens, documenting the damage may not be the first thing on your mind. However, it's important to document the damage right away — as long as it's safe to do so. Take clear photos and videos of the damage. The more details you provide, the easier it will be for your insurer to understand what happened and process your claim. Remember that all of the documentation and records you keep will help support your claim, which can help move the process forward more quickly. Step 4: Make a list of what was lost or damaged In addition to photos of the damage, go through your home and write down everything that was damaged or destroyed. You'll want to be as detailed as you can. Then make a copy of that list to give to your insurance adjuster. If you have receipts for any of the items, include those since they can help support your claim. Expert tip: Having a home inventory can simplify this step. Many insurance companies offer digital inventory tools through their apps, so it's worth checking if your insurer does to simplify this step. Step 5: Take steps to prevent more damage If your home has fire, smoke, or water damage, it's a good idea to call a restoration company to get help with cleanup ASAP and make sure your home is safe. Depending on the situation, they might board up broken windows, start drying out water damage, or set up air purifiers to clear smoke from the air. Don't forget: You'll want to check with your insurance company first about what you're allowed to clean up or repair temporarily. That way, you don't tamper with what the adjuster still needs to inspect. When it comes to repairs, your insurance company may recommend preferred contractors within its network. However, you don't have to follow their recommendation. You're typically allowed to hire your own licensed contractor, which can give you more control over the quality of the work, depending on the details of your policy. Just keep in mind that your contractor's estimate may be higher than the adjuster's. If that's the case, you'll need to work with both the contractor and your insurance company to resolve the difference and ensure everything is fair and reasonable. Learn more: How to shop for homeowners insurance Step 6: Get ready for the adjuster's visit Your insurance company typically sends an adjuster to inspect the damage. The adjuster works directly for the insurer and helps estimate the cost of repairs to determine an appropriate settlement amount. The adjuster will carefully walk through your home to inspect the damage and ask questions about what happened. It's best to prepare for their visit in advance so you can point out any damage and share your list of damaged items. Step 7: Relocate to safety (if needed) Sometimes, your home may be considered unsafe and uninhabitable after a fire or other major damage. If that's the case, your insurance adjuster or the fire department may recommend that you stay somewhere else while repairs are done. Many policies include additional living expenses (ALE) coverage, which takes care of expenses like accommodations and meals if your home is unlivable due to a covered event. If you have to live elsewhere, make sure to keep all your receipts for things like hotel stays, meals, and transportation. Step 8: Collect your payment After you and your insurance company agree on the settlement amount, they'll typically send the payment within a few days to a few weeks. In some cases, you might receive more than one check, with the first serving as an advance on your total settlement to help with any immediate repairs. If you have a mortgage, your insurer may issue the check to both you and your lender. That way, the bank can make sure you use the funds to complete the necessary repairs. Keep in mind: You might not receive the full amount all at once. It's common to receive an initial payment to help you start on repairs and then receive the remaining amount at a later date. Learn more: Is homeowners insurance required? The answer might surprise you. Step 9: Advocate for yourself If you're unclear about any step in the filing process, make sure you speak up and ask questions. It's easy for details to fall through the cracks, especially when managing a large project, so stay proactive to avoid potential delays or mistakes. When to file a homeowners insurance claim Just because you can file a home insurance claim doesn't always mean you should. And in some cases, you might not think to file a claim, but you would benefit from it. If you're not sure whether you should file a claim, check with your insurance agent. They can help you make the best decision for your situation, which will protect your coverage in the long run. But if you're still trying to decide, here are some suggestions as to when you should and when you shouldn't file a claim. Learn more: How much is homeowners insurance? A guide to lowering costs How soon should I file a claim? Homeowners insurance companies generally want you to file a claim as soon as the damage happens. In most cases, you have anywhere from a few months to a year from the date of the incident. That said, the exact amount of time you have to file depends on your policy and your state's laws. If something happens to your home, you're already dealing with enough stress. Waiting to file a claim can turn a manageable situation into a bigger hassle. Filing your claim promptly can help: Speed up the claims process Prevent more damage from happening Maintain a clear record of what happened Reduce the risk of delays (or having your claim denied) Expert tip: Check your policy or call your insurer to find out the specific deadlines that apply to you, so you can stay on top of the process. Learn more: Actual cash value vs. replacement cost: Understanding the difference in home insurance Is the damage well above your deductible? Your deductible is the amount you must pay out of pocket before your insurance coverage kicks in. If the cost of repairs is much higher than your deductible, then filing a claim probably makes sense. But if the repair costs are close to or less than your deductible, you might want to cover the expenses yourself. For example, if your deductible is $2,500 and the damage is $35,000, it's a good idea to file a claim. But on the other side of that: If you incur damages that only total $2,000, you should consider skipping the claim as you won't get paid. Plus, your insurance rates typically go up when you file a claim. Was the damage caused by poor maintenance? Home insurance is meant to cover sudden, unexpected damage — not normal wear and tear. If the damage was something preventable (like a leaky roof from years of neglect), your claim could be denied. So, before diving into a claim, make sure it's not something the insurance company would view as your fault. Have you filed multiple claims in the last few years? Filing multiple claims in a short time can raise red flags with your insurer. It may lead to higher premiums — or even a cancellation of your policy. Insurance companies track this history using something called a Comprehensive Loss Underwriting Exchange (CLUE) report. The information can stay on your record for up to seven years and influence the rate you pay for coverage. Problems like flooding, earthquakes, or sump pump backups are common exclusions in standard homeowners insurance policies. You typically need separate coverage for these types of events. So if the issue isn't covered under your policy, filing a claim likely isn't worth the effort. Up Next Up Next Risks of filing a homeowners insurance claim One of the biggest risks of filing a homeowners insurance claim is that your premium could go up. Insurance companies look at how likely you are to file a claim in the future when setting your rates, so making a claim can make you seem like a higher risk. For example, your insurer may not raise your rate if something truly unexpected happens, like storm winds knocking a tree onto your roof. But if the damage is seen as preventable, like a kitchen fire caused by unattended cooking, you may notice a jump in your premium. The three-claim rule: It's also important to know that many insurance companies follow what's called the 'three-claim rule.' If you file three or more claims within five years, they may see you as too high risk to insure at all. That could result in reduced coverage, nonrenewal of your policy, or cancellation. What NOT to do when filing a home insurance claim Here are a few things you should avoid when submitting a claim: Don't wait too long. Failing to notify your insurer immediately or missing the deadline to file a claim can lead to the insurer denying your claim. Don't let your policy lapse. If your premiums aren't up to date, your claim could be denied, even if the damage is covered under your policy. Don't assume your policy covers everything. Not understanding the details of your policy and exclusions (like flood or earthquake damage) can leave you vulnerable and may mean you have to pay out of pocket for damages. Don't skip preventative steps after damage. After a loss, insurance companies expect you to take reasonable action to prevent further damage, such as boarding up broken windows or turning off water to stop a leak. For more severe cleanup or repairs, work with a restoration company. Don't forget to keep records of everything. You'll need detailed records like photos, videos, and an itemized list of the damage. Vague or incomplete claims are more likely to get delayed or denied. Learn more: How much homeowners insurance do you need? Can my homeowners insurance claim get denied? Homeowners insurance claims get denied more often than you might think. Of the nearly 9 million homeowner claims that were closed in 2023, 37.4% were denied payment, according to Weiss Ratings. In some cases, the denial is pretty straightforward, but in others, it might not be so obvious. Here are a few common reasons your claim can get denied: You missed the filing deadline. You didn't take steps to prevent further damage after the incident. You haven't kept up with your premium payments. You filed for something that isn't covered by your policy. You falsified documents or gave misleading information. You didn't include enough documentation to back up your claim. Understanding these reasons can help you avoid filing errors and improve your chances of getting your claim approved. What to do if your claim is denied If you believe your claim was wrongfully denied, there are a few steps you can take to try to reverse the decision: Find out what led to the claim denial. Home insurance companies are required to send a formal letter explaining why they denied your claim based on the details of your policy. If the reason isn't clear-cut or you feel it was denied by mistake, reach out to the claims adjuster (and your agent, if you have one) to gain a better understanding. File a formal appeal. If you disagree with the claim denial, you can file an official appeal. Just make sure you follow the appeals process closely and include plenty of documentation to support your claim. Consult with a public insurance adjuster. Insurance companies have their own adjusters who work for them, but you can hire a public adjuster to review your claim and look out for your best interests. They typically charge up to 15% of your insurance payout. However, some may offer a complimentary review to get started. Hire an attorney with insurance claim experience. If you continue to hit a dead end, but still believe you're entitled to a settlement, your last option might be to speak with an experienced attorney. Make sure they've successfully handled property insurance cases in the past and can provide solid references. Keep in mind, though, you'll usually have to pay out of pocket for legal fees, which can add up quickly. Report it to your state's insurance department. If your claim isn't being handled fairly and you've kept up with your payments, you can file a formal complaint with your state's Department of Insurance. Expert advice: Remember that reversing a denial isn't easy, but if your policy supports your case, it's worth speaking up. How to file an insurance claim FAQs How long do you have to file a homeowners insurance claim? How long you have to file a claim depends on your insurance company, your policy, and even the state you live in. But in general, it's best to file as soon as you can. Waiting too long can slow the claims process down — or worse, get your claim denied. Filing right away helps speed things up and gives you a better chance of getting the money you need sooner. Will a homeowners insurance claim affect my rates? Yes, your rate may go up, but not always. Whether your rate increases, and by how much, depends on your insurance company. Each home insurer calculates rate changes differently, using factors like the type of claim, how many claims you've filed in the past, and the laws in your state. So, if you're unsure how a claim may impact your rate, it's a good idea to ask your insurer before filing. How long does a homeowners insurance claim affect my rates? Typically, claims stay on your CLUE report for up to seven years. Some insurers, however, may only look at the last three years of your claim history to make this determination. Always ask your insurance company, so you know what to expect. What documents do I need to file a homeowners insurance claim? When you file a claim, you'll start by providing some basic information, like your policy number, name, address, and phone number. Insurance companies will also typically ask you to fill out a claim form, which includes attaching supporting documents. That means making a list of everything that was damaged or lost, and taking clear photos and videos of the damage. This step is key, since it helps streamline the claims process and ensure you're right on track. Jamie Young and Tim Manni edited this article.

Wall Street Journal
a day ago
- Business
- Wall Street Journal
W.R. Berkley Profit Rises Despite Continued Surge in Catastrophe Losses
W.R. Berkley's WRB -1.38%decrease; red down pointing triangle profit rose in the second quarter, even as catastrophe losses continued to climb. The Greenwich, Conn., insurance company on Monday posted a profit of $401.3 million, or $1 a share, up from $371.9 million, or 92 cents a share, in the same quarter last year.
Yahoo
6 days ago
- Business
- Yahoo
Thinking about buying an annuity? Here's what you need to know first
Key takeaways An annuity can help you save for retirement and has favorable tax benefits. Experts caution that annuities can be complex and risky, carry high fees and are difficult to cancel. Some alternatives to annuities include a traditional investment portfolio, managed payout fund or life insurance policy. One of the biggest risks in retirement is the possibility of outliving your savings. What if you didn't save quite enough during your working years, your investments underperformed or you picked the wrong withdrawal strategy? Annuities are a financial product meant to protect against longevity risk, or the possibility of outliving your money in retirement. You hand over a lump sum or series of payments to an insurance company, and in exchange, the insurer takes on the risk and promises a series of payments to you either now or years in the future. Because they can provide predictable income, annuities are a popular approach to retirement planning, especially as pensions have become less common in the private sector. However, annuities have their share of drawbacks, such as high fees and complex contracts, which is why it's essential to understand all the pros and cons before moving forward. Here's how annuities work and what to consider before purchasing an annuity. How annuities work An annuity is a contract with an insurance company. It provides a stream of income, typically in retirement, in exchange for money paid into the annuity. You can purchase an annuity by depositing a lump sum or by making a series of premium payments over time. People often invest in annuities as part of their broader retirement strategy. Sold as an insurance product, annuities pay out on a predictable schedule. That's why these financial products are sometimes referred to as a 'paycheck replacement.' These retirement paychecks can last for a specific period, such as 10 or 20 years, or for the rest of your life, depending on how the annuity contract is structured. Most annuities have two phases — the accumulation phase and annuitization, or the payout phase. In the accumulation phase, you're putting money into the annuity. In the annuitization stage, you're taking payouts from the annuity. Money deposited into an annuity is locked up for a time called the surrender period. If you decide you want out of the annuity early, you'll pay a hefty fee called a surrender charge. New to annuities? Annuities are complex and a bit different than other financial products. Learn how annuity fees and commissions work and the common annuity terms that are helpful to know. Types of annuities There are three basic types of annuities. Each type describes how an annuity generates a return. Fixed: A fixed annuity guarantees you a minimum rate of return on your investment and will pay out over a fixed term. Variable: A variable annuity allows you to put your money into various investments, often mutual funds. What the annuity returns and pays out to you can fluctuate and depends on how the investments perform and the expense ratios on any funds you invest in. Indexed: An indexed annuity offers a rate of return that tracks an index such as the S&P 500, which holds hundreds of America's largest companies. Additionally, annuities can also be classified by when they pay out. Deferred annuities pay out at some specified time in the future, perhaps in retirement. Immediate annuities begin paying out within a year or less of purchase. In the table below, you can see how the three main types of annuities compare based on key benefits: Benefit Fixed Variable Indexed Provides income replacement during retirement X X X Guaranteed minimum rate of return X Fixed premiums over a certain period of time X X X Option to choose your investments X Tax-deferred growth X X X Annuity riders Annuities can be structured in many different ways, depending on your needs. These optional features are called riders and provide a higher level of benefits — at a cost. Generally, the more riders your annuity has, the pricier it is. Some annuities can guarantee you'll receive a specific amount from the account over a period of time. Other riders provide a death benefit that pays out after you die or survivor's benefits, where a spouse can continue receiving payments. So while the company issuing the contract has many different ways to create the annuity based on your needs, you'll pay extra for all the benefits. Tax advantages of an annuity Qualified annuities offer tax-deferred growth on your investment until you withdraw the money or begin receiving payments. This feature can be valuable for those looking for a tax-advantaged way to save for retirement. If you fund a nonqualified annuity with after-tax money, you'll be taxed at withdrawal only on the earnings, not any principal that you take out. Like other tax-deferred retirement accounts, such as a traditional 401(k), qualified annuities have annual contribution limits but nonqualified annuities — like brokerage accounts — have no limits. That's a particular benefit for higher-income savers, who may otherwise want to contribute more to their retirement but have maxed out a 401(k) or IRA. You can also buy an annuity inside a Roth IRA or Roth 401(k), making those payouts entirely tax-free. However, many experts frown on putting a complex tax-advantaged account inside another tax-advantaged account, such as a Roth IRA. After all, there's no additional tax benefit to doing so. The downside of annuities An annuity can solve the challenge of outliving your savings and may offer some other benefits, such as a death benefit. However, annuities come with downsides, and many financial advisors may be skeptical of annuities for the following reasons. Complexity Annuity contracts are notoriously complex, often totalling dozens of pages. In the fine print, you'll find the many conditions of the annuity spelled out, such as when you can get paid, how much it will cost you to cancel the contract, the guaranteed payment, what rate of return you can expect and all the other details that govern the agreement. On top of this complexity, annuity contracts may differ markedly from one to the next. Annuities have some broad similarities, but the devil is in the details. Insurance companies may offer a specific kind of coverage that you're looking for while burying the less flattering details deep within the contract. You'll need to read the agreement closely to understand your rights and responsibilities. But even spending hours on the contract may not be enough to fully grasp all the conditions. It may be best to seek help from a third-party financial advisor. Compare advisors: Bankrate's list of the best financial advisors High sales commissions One of the most significant drawbacks of an annuity is the large sales commission baked into the product. While you may not pay the commission directly, it still reduces the returns you otherwise could have earned. Unfortunately, it's not unusual to spot a commission at 6 or 7 percent, though it may go up to 10 percent. If you put $100,000 into an annuity, a salesperson may take $6,000 or more, though the insurance company may obscure how you're charged. Complex annuities with more features generally have higher commissions than simple annuities. An annuity with an extended surrender charge period may mean higher commissions, too. With that kind of incentive, it's little wonder insurance agents may be eager to sign up clients in a complex product. It's also why you may want to consider getting a second opinion from an independent fee-only financial advisor who's looking out for your best interest. Illiquid asset that's difficult to cancel Once you put your money into an annuity, it's generally tied up for an extended period. You'll receive your income stream, and may be able to withdraw some of the principal, but for the most part, your money is locked up and you have relatively little access to it. If you decide you want to get out of your annuity, you'll likely face substantial fees called surrender charges. Surrender charges typically last six to eight years after signing the annuity contract, and tend to decrease over time. You can also choose to sell your annuity payments. There are several reasons you may choose to sell the payments, but the decision shouldn't be taken lightly. A factoring company will apply a discount rate to the payments you sell, meaning you'll never receive the full amount of what your future payments are actually worth. While there may be ways for you to wiggle out of an annuity contract, don't expect them to be easy or free. That can be problematic if you need money for an emergency and your income or other savings don't suffice. Risk Because they may rely entirely on the markets for any gain, variable annuities are especially risky, potentially leaving you with few gains and maybe even losses after years of saving. You'll want to invest any money for the long term to ride through the dips in the market and avoid fees that may come with an early withdrawal. Variable annuities tend to have the highest fees too — a mortality and expense risk charge, the expense ratios of any funds you invest in, administrative costs and any additional fees for special riders you've added to the account (for example, a death benefit or guaranteed minimum payout). And suppose you withdraw your money early, before age 59½. In that case, you can get hit with a 10 percent penalty from the IRS in addition to taxes you'll owe on any investment gains, much like the penalties for early withdrawals from traditional IRA and 401(k) accounts. Alternatives to annuities So many kinds of annuities exist because consumers have varying needs. But ultimately, annuities aren't the right choice for everyone. Here are some alternatives to annuities. Investment portfolio: Strategic investments can help provide extra income during retirement. For example, while an annuity may promise you a 4 percent return on your money, a financial advisor may be able to construct a portfolio that earns you 5 percent today and offers a growing stream of dividends in future years. Or you could use a robo-advisor to create a balanced portfolio for you at a fraction of the cost. Certificate of deposit: CDs are another relatively safe way to save for retirement. CDs usually require that you leave your money untouched for a set term, after which you can withdraw the principal and interest. You pay taxes on the interest annually, even if you haven't received the money yet. Managed payout fund: A managed payout fund is similar to an annuity, but there is no guaranteed rate of return on your money. Managed payout funds are a type of mutual fund that can yield anywhere from 1 percent to 8 percent growth. Life insurance policy: Certain types of life insurance can provide income replacement during retirement, usually through riders. Life insurance policies also have a death benefit your loved ones can access after you pass away. Annuity FAQs What are the benefits of purchasing an annuity? One of the most significant benefits of an annuity is that it allows you to put money away for retirement. The money grows tax-free, which maximizes the account's growth potential. If you choose a fixed annuity, you will get a guaranteed rate of return on your money, which limits risk. Another major benefit is you don't have to worry about managing your investments or withdrawal strategies. The insurance company will take care of that for you. This can be a huge relief if you're not comfortable managing your own portfolio or you want to simplify your retirement plan. What is a surrender period? An annuity surrender period is the duration of time that an investor must wait to withdraw money from the account without being penalized. The surrender period depends on several factors, including your insurance company and the type of annuity you own. If you withdraw money during the surrender period, you will likely have to pay a hefty fee. Bottom line Annuities can be a good decision for the right person at the right time, but they come with substantial downsides that you should understand before signing a contract. Consider working with a financial advisor who can help you determine your long-term financial goals, investment strategy and help you decide if an annuity is the right fit for you. Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation. 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CTV News
15-07-2025
- Business
- CTV News
Insurer contracts private crews to protect homes from northern Sask. wildfires
WATCH: A Saskatchewan-based insurance company is hiring tactical fire teams to help protect properties in the path of the province's wildfires.
Yahoo
14-07-2025
- General
- Yahoo
Michigan man faces $68K worth of damages after neighbor's home exploded — insurer refused to send claims rep
On December 30, 2023, David Fauls found himself in a terrifying situation. Fauls was playing in the basement with his kids when something unexpected occurred: 'I just heard this unexplainably massive sound," he said. 'I looked out and I could see the mushroom cloud." What Fauls heard was his neighbor's home exploding in an incident that shook Fauls's own home as well. Fauls and another neighbor ran toward the flames to help Richard Pruden, the neighbor whose home had disappeared with the blast. Tragically, Pruden and his grandson were hurt and his daughter, her husband and their other two children were killed in what the officials preliminarily called an 'undetermined fuel air explosion' — one of several house explosions that has rocked Southeast Michigan recently. Fauls did what any good neighbor would do in a crisis, offering assistance on that devastating day. But now, he is also in need of help and says his insurer isn't stepping up. The company refuses to cover the $68,000 in damages to his home — damages he believes resulted from the explosion. Fauls has been pleading for aid ever since, even as the wait causes financial devastation for his family. "No family should have to go into debt or break the bank to get the coverage that they're paying for insurance to cover,' Fauls said. I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Fauls's home is located 600 feet away from the exploding property and in the aftermath of the tragedy, Fauls says he began to notice what he says are new problems around his own home. "I've got to get past the emotion and trauma of this thing and then try to deal with this,' he told WXYZ Detroit. 'Every single day we just found something else and we just kept seeing more and more.' He listed split moldings, cracks in the foundation and a host of other serious issues, including significant damage to at least 10 windows. Estimated repair costs included $23,745 for foundation issues and $44,256 for windows. Following the explosion, Fauls asked his insurer, AAA Auto Insurance Club Association, to cover the costs — but he says the insurer refused to send a claims representative to see the damage firsthand. "He refused. He just would never step on site. He would not get involved. He would not try and see the damages,' Fauls told WXYZ. The insurer did send a forensic engineer from Nederveld Engineering, who Fauls described as "very dismissive." The engineer attributed the cracks and window damage to the age of Fauls's home, rather than the blast, so the insurer agreed to pay $20,223 in damages for cracked paint and drywall and nothing at all towards the $68,000 the windows and foundation would cost. However, Fauls disagrees with this assessment. Read more: Americans are 'revenge saving' to survive — but millions only get a measly 1% on their savings. "I see a report that's telling me the plastic broken in between my window panes is age-related deterioration. When a concussive force rocked this house and I watched that and now there's discoloring and you can't see out these windows. I'm like, OK, this is craziness. This is not just unprofessional, it's absurd,' said Fauls. For its part, AAA told WXYZ that, '[Auto Club Insurance Association] takes all homeowner claims seriously" but said that the company brought in an independent, licensed engineering firm to provide expertise and evaluate the situation as a matter of common practice and the company stands by the engineer's report, which makes clear the damage wasn't caused by the explosion. It says, "there was a portion of the claim in which coverage could not be afforded based on the expert engineering findings, which concluded that the damages in question were not attributable to that same incident but were consistent with normal age-related wear and tear." Fauls isn't satisfied and neither are many others who are covered by the same insurer. In fact, Fauls and 61 others filed complaints against AAA last year with Michigan's Department of Insurance and Financial Services. These complaints meant AAA earned the fifth-highest number of insurance complaints in Michigan during that time period. Considering this as a cautionary tale, you may want to avoid a similar situation by doing the following: Carefully review your insurance policy to understand what is and isn't covered prior to any incidents or claims and sign up for coverage that offers what you need Take detailed photos of your property and home upon taking possession so you have a clear reference point to what state the house is in If you have an inspection report, keep this handy as well Take pictures of any damage you do see, so you can keep track of what was and wasn't already pre-existing When disputes like this occur, legal battles are one outcome and decisions to pursue them often come down to which side can put together the most compelling case. If you've already claimed damages and find the insurer isn't willing to pay for them, you may: Obtain a lawyer to help you argue your case Get additional expert opinions of your own as soon as possible following the incident to see if the insurer's findings are consistent with your experts' Talk to others who witnessed the event or neighbors who may have also noticed the same issues with their own home Carefully document all new damage you attribute to the incident Keep records of repair bills Depending on your circumstances, you may also want to file a complaint with your local insurance commissioner, as Fauls did This tiny hot Costco item has skyrocketed 74% in price in under 2 years — but now the retail giant is restricting purchases. Here's how to buy the coveted asset in bulk Here are the 6 levels of wealth for retirement-age Americans — are you near the top or bottom of the pyramid? Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Money doesn't have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.