Determining a Fair Settlement Amount

When you place a homeowner's insurance claim, you want to receive a fair settlement amount. If you don't receive a fair settlement amount, you risk not being able to pay for the damages that have been sustained to your home. As a result, you may have to pay a lot of money out of pocket and this is not something that anyone wants to do. If you can't pay for the remainder, then you are faced with having to make a cheap repair that will not last or you won't be able to make it at all.

So the first thing that you want to do is document everything before you make your claim. You want to do this quickly, though, because you want to be able to make your claim quickly. You'll also need to take pictures of the damage.

It does help if you take pictures of your home when you purchase your homeowner's insurance or liability insurance. This is because you want to have before and after pictures in order to show the damage. You may even consider video footage just in case you need it. This may help you to gain a suitable settlement.


The insurance company may send someone to estimate the damage so that they can pay an appropriate amount. However, unless they are sending a company that can do the repairs for the amount of money that they are estimating for the insurance company, you may want to show that the repairs cannot be done under a certain amount. Just to be safe, you may want to have your own estimates done.

It's okay if you want to have several companies come in for the estimate so that you can provide your home insurance company with the information that you are given. This will allow for proper documentation of your claim and will help for you to negotiate your settlement amount to ensure you have enough money to have your repair done.

If you are not given the amount that you need, you are going to have to use your negotiation skills to try and get what you need.


The insurance company is going to give you a low figure for your repairs, but you don't have to take the money and run. If you find that the settlement amount offered to you is not enough, hold out just a little longer.

Use all of the supporting information that you have so that you can determine your fair settlement amount. Go to hardware stores if you need to in order to estimate the cost of materials if you will be doing the repair on yourself. You also want to use the estimates you have if you won't be doing it on your own.

If you can hold out for just a little while longer, you may find that you will be given the settlement amount you deserve. Being able to pay for the repairs 100% with the money that you are given by the insurance company is worth the wait because you don't want to pay out of pocket for an event that you could not prevent in any way.

In the end, you will find that the insurance companies are not necessarily trying to cheat you out of what's yours. They are a business and that means they have to try and settle for as little money as possible. But when they find that a higher settlement is warranted, they will pay the money that you need in order to make your repairs. Besides, that's what you pay your premium for.

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