Whether your client is filing their first property claim or their fifth, the process can feel overwhelming - especially when they're simultaneously dealing with a damaged home and displaced family. Understanding the timeline, the key players, and what to expect at each stage helps you guide your client through the process with confidence.
This guide covers the standard property insurance claim process for restoration losses (water, fire, mold, and storm damage).
Stage 1: Loss Notification (Day 1)
The claims process begins when the policyholder or their agent reports the loss to the insurance carrier.
Key Actions
File the claim as soon as possible. Most policies require "prompt" notification. While there's no universal deadline, delays in reporting can complicate the claim - especially if secondary damage develops that could have been prevented with timely mitigation.
Begin emergency mitigation immediately. The duty to mitigate is a policy requirement, not optional. The policyholder must take reasonable steps to prevent further damage - calling a restoration company for water extraction, board-up after a fire, or tarping a damaged roof - even before the adjuster arrives.
Important: emergency mitigation does not require pre-approval from the carrier. The policy requires the homeowner to protect the property. Document the mitigation work and costs, and they'll be included in the claim.
Stage 2: Adjuster Assignment and Inspection (Days 1-5)
The carrier assigns an adjuster - either a staff adjuster or an independent adjuster (IA) - to inspect the loss.
What to Expect
For emergency losses (active water, fire, major storm damage), most carriers have expedited assignment processes. The adjuster should make contact within 24 hours and schedule an inspection within 1-3 days.
The adjuster's initial inspection documents the cause of loss, the extent of damage, and the affected areas. They may take measurements, photographs, and moisture readings.
Important for agents: If a restoration company is already on-site performing mitigation, coordinate with the adjuster to ensure they can inspect the affected areas before drying is complete. A good restoration company will document pre-mitigation conditions thoroughly. Learn what makes a great restoration partner.
Stage 3: Scope and Estimate (Days 3-14)
After inspection, the adjuster develops an estimate for the restoration work. This is where the process can either move smoothly or stall.
The Ideal Scenario
The restoration company and adjuster agree on scope and pricing. This happens most efficiently when the restoration company uses Xactimate (the same software the adjuster uses) and follows IICRC standards that adjusters recognize.
Common Friction Points
Disagreements on scope - the restoration company identifies damage the adjuster didn't include, or the adjuster questions whether certain work is necessary.
Pricing disputes - line item pricing that differs from the carrier's pricing database.
Supplemental items - additional damage discovered during restoration that wasn't visible during the initial inspection. Supplements are normal and expected for water and fire losses.
How These Get Resolved
Professional restoration companies handle scope disagreements through documented supplement requests with photos, moisture data, and IICRC standard references. This is routine and typically resolved within a few days.
Stage 4: Restoration Work (Days 5-30+)
Once the scope is agreed upon, restoration work proceeds. Timeline depends on the type and extent of damage:
Typical Timelines by Damage Type
Water damage: 3-5 days for extraction and drying, plus 1-2 weeks for repairs (drywall, flooring, paint) if structural drying was needed.
Fire damage: 2-8 weeks depending on scope. Small kitchen fires may take 2-3 weeks. Significant structural fires can take months, especially if rebuild is involved.
Mold remediation: 3-7 days for remediation itself, plus time for clearance testing and any necessary repairs.
During this phase, the restoration company should provide regular updates to both the homeowner and the insurance carrier. Progress documentation, daily drying logs (for water losses), and photo documentation of each phase support the claim file.
Stage 5: Completion and Payment (Days 14-60+)
Direct Billing
The restoration company invoices the carrier directly. The homeowner pays only their deductible. This is the simplest path for the policyholder.
Indemnity Payments
The carrier issues payment to the policyholder (and mortgage holder, if applicable), and the homeowner pays the restoration company. This requires more coordination and can delay payment.
Depreciation and Recoverable Depreciation
Initial payments on replacement cost policies may reflect actual cash value (depreciated). The homeowner can recover the depreciation amount after repairs are completed and documented. The Insurance Information Institute explains how deductibles and depreciation interact. Make sure your client understands this two-payment structure before they assume the initial check is the full settlement.
Stage 6: Supplements and Final Settlement
Supplements are additional items identified during restoration that weren't in the original scope. They're common in water and fire losses where hidden damage is discovered as work progresses.
A well-documented supplement includes photos of the newly discovered damage, an explanation of why it wasn't visible during the initial inspection, and an Xactimate estimate for the additional work.
Final settlement occurs when all work is complete, all supplements are resolved, and both the restoration company and carrier agree on the final invoice. The homeowner should receive a completion certificate and warranty documentation from the restoration company.
Tips for a Smooth Claims Process
- File the claim immediately - don't wait to assess the full scope
- Begin mitigation before the adjuster arrives - it's required, not optional
- Work with a restoration company that uses Xactimate and follows IICRC standards
- Document everything - photos, communications, receipts, timelines
- Understand your policy's deductible, coverage limits, and any sublimits (especially for mold)
- Keep copies of all claim correspondence and adjuster reports