Common Mistakes to Avoid When Filing Theft Damage Claims

Experiencing a theft can be both frustrating and financially damaging. Whether it’s your home, business, or vehicle that’s been targeted, filing a theft damage claim with your insurance company should be straightforward—right?

Unfortunately, many policyholders make critical mistakes that delay or even reduce their claim payout. The claims process is full of pitfalls, and a single misstep can lead to unnecessary stress, denied claims, or smaller settlements than you deserve.

To help you navigate the process smoothly, we’ll break down the most common mistakes people make when filing theft damage claims—and how to avoid them.

1. Not Reporting the Theft Immediately

One of the biggest mistakes you can make is delaying reporting the theft. Many people hesitate because they feel overwhelmed, but time is of the essence.

Why Immediate Reporting Matters

• Insurance policies often have strict deadlines for filing claims.
• Delays can make it harder to provide accurate details.
• The police report is a key piece of evidence, and a delay can weaken your case.

2. Providing Incomplete or Inaccurate Information

Many theft claims get delayed or denied because of missing or incorrect details. Inconsistent information can make insurers suspicious and lead to further investigation.

Common Errors to Watch For:

• Forgetting to list all stolen items.
• Providing inconsistent descriptions of the incident.
• Exaggerating or underestimating the value of stolen property.

How to Avoid This Mistake:

• Double-check your claim before submission.
• Include as many details as possible—time, location, circumstances, and supporting evidence.
• Stick to the facts and ensure consistency between your police report and insurance claim.

3. Failing to Provide Proof of Ownership

If you can’t prove that you owned the stolen items, your insurance company may question your claim’s validity. Unfortunately, many people don’t keep receipts or records of their belongings.

How to Prove Ownership:

• Keep receipts, invoices, or purchase confirmations.
• Take photos or videos of valuable items in your home or business.
• Maintain a digital or physical inventory of your possessions.

If you don’t have proof, provide witness statements or old photos that show you owned the stolen items.

4. Overlooking Policy Coverage and Exclusions

Not all thefts are covered under every insurance policy. Many policyholders assume they are fully protected, only to discover that their policy has limitations or exclusions.

Common Coverage Issues:

Some policies exclude theft from unlocked vehicles or unattended property.

Certain valuables (jewelry, electronics, collectibles) may have coverage limits.

Business theft may require a separate commercial policy.

How to Avoid This Mistake:

• Read your policy thoroughly before filing a claim.
• If unsure, consult a public adjuster or your insurance representative to clarify coverage.
• Consider adding endorsements or riders for high-value items.

5. Not Documenting the Damage Properly

If a theft involves property damage—such as broken locks, shattered windows, or forced entry—you need to document everything meticulously. Failing to do so can lead to claim disputes or reduced payouts.

Best Practices for Documentation:

• Take clear photos and videos of the damage before making repairs.
• Save repair estimates, invoices, and receipts.
• Keep a copy of any written communication with police or insurance adjusters.

6. Accepting the First Settlement Offer Without Review

Insurance companies aim to settle claims quickly, but their first offer is often lower than what you’re entitled to. Many policyholders accept it without questioning, leaving money on the table.

How to Handle Settlement Offers:

• Review the offer carefully and compare it with your estimated losses.
• If the offer seems too low, provide additional evidence to justify a higher payout.
• Consider hiring a public adjuster to negotiate on your behalf.

This is where Avner Gat, Inc. can be invaluable. Their experienced public adjusters advocate for you, ensuring you receive the maximum compensation for your theft damage claim.

7. Repairing or Replacing Stolen Items Too Soon

Many people rush to replace stolen items or repair damage before the insurance adjuster inspects the situation. This can lead to complications when proving your claim.

The right way is to wait for approval before making major repairs or replacements. If urgent repairs are necessary, document everything thoroughly.

8. Not Keeping Copies of All Claim-Related Documents

Lost paperwork or missing records can cause major delays in processing your claim. Many people fail to keep track of important documents, making it difficult to dispute issues later.

Documents You Should Keep:

• Police report
• Insurance claim forms
• Emails and correspondence with your insurer
• Proof of ownership for stolen items
• Receipts for repairs or replacements

Having an organized record of your claim ensures you have evidence in case of disputes.

9. Handling the Claim Alone Without Professional Help

Insurance claims can be complex, and insurers often look for reasons to minimize payouts. Many policyholders try to handle the process alone, not realizing they could benefit from professional assistance.

• Public adjusters understand policy language and can maximize your claim.
• A legal expert can help if your claim is unfairly denied.
• Professionals know how to negotiate with insurance companies effectively.

If you’re struggling with a theft damage claim, Avner Gat, Inc. can help. Their team of expert public adjusters will handle negotiations, ensure your claim is properly documented, and fight for the highest possible payout. Contact them at  (818) 917-5256 for a free consultation.