An insurance claim is a request for payment to the insurance company after the policyholder experiences a loss covered by their policy. For example, if a house is damaged by fire and the owner has insurance, the owner will file a claim to begin the process of having the insurance company pay for the repairs.
It can take anywhere from a few weeks to a few years to process the payment, depending on the type and size of the claim you make.
types of insurance claims
There are several different types of insurance claims – the type of claim you need to file depends on the policies you have and what they cover.
auto insurance covers property damage or injury to others when you are at fault in an accident. If your auto insurance policy includes collision coverage, you can file a collision claim for damage to your car in an accident, regardless of fault. the addition of comprehensive coverage protects against damage caused by something other than a collision, such as fire, theft, falling objects and natural disasters.
Most auto insurance also includes underinsured or uninsured motorist coverage, which helps pay for damages or injuries if the at-fault driver is uninsured or if you’re the victim of a hit and -run.
Homeowners Insurance covers the structure of your home, your personal property, and your liability for injuries to visitors to your home. Homeowners insurance also includes Additional Living Expense (ALE) coverage, which reimburses you for rent on a house or hotel if your home becomes uninhabitable. An insurance company will pay a homeowner’s claim if the damage was caused by a peril covered by your policy, such as fire, theft, or wind.
renters insurance pays claims related to theft or damage to your personal property, personal liability for damage or injury, and additional living expenses if you need to move temporarily. Like homeowners insurance claims, renters insurance claims are subject to specific risks.
Health insurance claims are usually handled by your doctor’s office. After your visit, you can pay a copay and then the doctor’s billing department will complete a health insurance claim form to determine if you owe a balance.
Most people do not participate in the claims process until they receive an explanation of benefits indicating that their claim was denied or that insurance will only cover a portion of the costs. At this point, you can appeal the decision if you think the services should be covered by your plan.
Life insurance pays a tax-free claim to your beneficiaries after they have provided the insurer with a copy of your death certificate. Life insurance is typically purchased to help your family with daily living expenses, college tuition, and funeral expenses.
what does it mean to file an insurance claim?
Filing an insurance claim is the process of informing your insurer of a loss you have experienced and requesting that it cover the associated costs. traditionally, the insured party, also known as the claimant, would complete a proof of loss form.
When filing an insurance claim, the policyholder must pay a deductible (if applicable) before receiving a settlement check from the insurance company.
how to make a claim
Filing an auto or home insurance claim is a multi-step process, and not all claims follow the same order or schedule. The time limit for filing a claim varies by state, so it’s important to start the claim process as soon as a loss event occurs.
We recommend following this process for a successful claim experience.
7 Steps to Filing a Home or Auto Claim
step 1: file a police report
If your claim involves a car accident or any illegal activity, such as theft, arson, or a traffic violation, contact the police immediately. do not call 911 unless the situation is urgent; instead, use your police department’s non-emergency line. Depending on where you live, you may need to visit the police station and file your report in person.
Step 2: Document any damage
then take the time to properly document the damage; You will need to submit photos or videos to your insurer as proof along with your claim.
Document property damage claims before cleaning up any messes to show your insurer the full extent of the damage.
Step 3: Review your coverage
Before filing your claim, make sure you understand your coverages, limits, and deductibles. reviewing your policy will help you avoid filing a claim for a loss that isn’t covered, or one where the cost of repairs is less than your deductible. your agent can help you with the process.
Step 4: Contact your insurance company
After determining if your damage is covered, you need to file your claim with the insurance company. Many insurance companies allow you to file simple claims online. For larger claims, contact your agent directly or call the phone number listed on your policy.
Before you begin, make sure you have all information related to your claim on hand, including the date of loss, police report (if applicable), receipts for damaged personal property, medical bills for injuries, and any other documentation you plan to use as evidence.
Step 5: Prepare for the insurance adjuster
Once you have filed a claim, your insurance company will send an adjuster to assess the damage. it is the adjuster’s job to determine how much your insurance company will pay.
You may not need to be present during the adjuster’s visit. however, guiding your adjuster through damage can be helpful. Talking to your adjuster will give you a chance to show them the damage, discuss your claim, and ask questions about your policy.
You can expect an insurance adjuster to:
After your adjuster submits your report to the insurance company, you will receive a settlement offer. It is important that you review the offer carefully because after you accept it, your claim will be closed. If you are not satisfied with the settlement, you can dispute the claim by asking the company for a second review or hiring a public adjuster or lawyer.
Step 7: Receive payment of the claim and repair the damage
Once you’ve signed the settlement agreement, your insurer will pay the agreed amount, less your deductible. If your insurance claim involves property damage, you can go ahead with hiring a professional to make the repairs.
how do insurance companies pay claims?
The payment process is different for each claim and is influenced by the type and size of claim you make. smaller claims take less time to process and are simpler, so you can receive a settlement check from your adjuster on the spot. When you make a larger claim, you can expect to receive multiple insurance checks during the repair process.
how long does it take to get an insurance check?
Depending on the amount of damage, settlement of insurance claims can take anywhere from a few weeks to a few years. For example, if you were involved in a car accident and only suffered minor injuries, the process can be quite quick. however, if your entire home needs to be rebuilt after a fire, the construction may take a few years to complete. in that case, you’ll receive multiple checks, including an advance settlement payment to begin repairs.
can you keep the money from the insurance claim?
If you own your car, you can use the money from the car insurance claim for whatever you want. however, your insurance policy will not pay for secondary repairs resulting from the initial damage if you choose not to repair it.
The same applies to homeowners insurance claims if you don’t have a mortgage. From time to time, you may have money left over from your home insurance claim after repairs have been made, which is yours, unless your insurance policy states that unused funds must be returned.
when not to file an insurance claim
Insurance companies keep a record of all claims filed, whether they are paid or not. Not all claims will result in an increase in your insurance costs, especially if they are small, but multiple small claims within a short period of time often increase rates.
Before you decide to file an insurance claim, check your policy to make sure the damage or loss is covered. If you’re not sure, you can get information by calling your insurance agent.
what happens when an insurance claim is filed against you?
When someone files a claim against your insurance, your insurance company will work to determine if you were at fault in the incident.
If you were involved in a car accident, your insurance company will review police reports and witness statements to determine if you were more than 50% at fault for the collision. When your insurer determines that you were the at-fault driver, the cost of your insurance can increase up to 46% if you are not enrolled in an accident forgiveness program.
If someone is injured at your home, it’s best to file a liability claim with your own insurance so you can tell your side of the story and possibly have the claim dropped. Liability claims are often expensive for insurance companies and typically result in a significant increase in rates, or even cancellation of your policy.
dispute a claim
If you are not satisfied with the settlement of your auto insurance claim, believe your claim was denied in error, or your car was not properly repaired after an accident, you can dispute the claim by contacting your state insurance department and filing a complaint. Auto insurance is regulated at the state level, and most states have a division that deals specifically with policyholder matters.
You may also hire an attorney to represent you. however, the cost may be greater than any increase in your settlement.
To dispute a homeowners insurance claim or settlement offer, you can start by asking the insurance company to review your claim. If you can’t work out a solution with the insurance company, you can hire a public insurance adjuster to provide an independent estimate of the damage. Your estimate will confirm that your insurance company’s settlement offer is accurate or provide evidence that you can show your insurer to request an adjustment. In the event that a public adjuster finds that your insurance settlement is missing and your insurer refuses to honor your requests, you can file a complaint with your state insurance department and retain an attorney.
frequently asked questions
