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You report the loss, an adjuster is assigned, damage is documented and scoped, and payment usually comes in stages — an initial actual-cash-value payment, then replacement cost holdback once repairs are done. Timelines depend on the size of the loss and how quickly documentation moves.
What you need to know
Document before you clean up
Photos, video, and a written inventory made early carry more weight than a reconstruction from memory.
Mitigate, but keep receipts
You are expected to prevent further damage. Reasonable emergency costs are typically reimbursable.
Understand the holdback
The difference between ACV and replacement cost is generally released after work is completed and invoiced.
Common mistakes
- Insuring the home to market value or loan balance instead of today's rebuild cost.
- Leaving liability at the lowest available limit with no umbrella above it.
- Assuming flood and earthquake are included — both are separate in California.
- Never scheduling jewelry, art or other items that carry low special limits.
- Filing small claims that cost more in renewal pricing than they paid out.
When to talk to an agent
Talk to an agent when your premium jumps, when you renovate or rent out the home, when you are told you are being non-renewed, or any time you cannot tell from the declarations page what your policy would actually pay.
Frequently asked
This article is general information, not a policy or a promise of coverage. What your policy pays depends on its specific terms, limits and exclusions. Ask us to review your actual policy before making a decision.