When an accident or injury happens, filing an insurance claim can feel tedious and overwhelming. What can you expect from the process of filing an insurance claim?
What To Expect When You File An Insurance Claim
Insurance claims are something that all of us can expect to face at some point in our lives. From vehicle accidents to health problems, there will be situations where you will need to file an insurance claim with your provider.
While this is not something we want to do, it is something that we all have to face one way or another throughout our lives, so it is essential to know what you can expect from the process before you go through it yourself.
Here are some things you can expect when filing an insurance claim!
Types Of Insurance Claims
People purchase insurance to secure themselves against the unplanned, including sickness, disasters, damage to property, and even natural catastrophes.
Individuals insured against natural catastrophe damages may submit a first-party claim if an insurance company unjustly delays or rejects a covered claim.
Damage to property, personal injury, wrongful death, loss of consortium, medical benefits, and premise responsibility lawsuits are all grounds for filing a claim.
Some of the most common types of insurance claims include:
- Injury & Property Damage
- Water Damage
- Wind & Hail Damage
- Burglary & Theft
- Fire Damage
- Flood Damage
- Property Damage
How Do Insurance Claims Work?
If you have been involved in an accident and want your insurance company to cover your damages, you must file an insurance claim to access your benefits.
The process of filing a claim can be confusing because many claims work differently depending on the type of insurance coverage. Therefore, the first step is always to report the incident to your insurer as soon as possible. Then, you can file a report online on their website or call them.
After you report the accident, the insurer will determine if the policy covers the damage or not (e.g., if it is a collision involving two cars, then it may be covered by both drivers’ policies). If they decide they are responsible for covering the cost of repairing or replacing property, they will typically offer you an estimate of how much it will cost them to do so.
How To Make A Claim?
It is possible to file a claim with your insurance company if you have a policy and have suffered losses. You can accomplish this over the phone and, more and more frequently, online. The insurer will then make arrangements for a third-party contractor to come out and assess the damage.
Suppose you have filed a claim for damages over a certain amount (whatever limit your policy has). In that case, they will likely need someone licensed as a general contractor or specialty contractor who can do the repairs before they approve the payment. They may also ask for documentation of what needs repairing and why.
If they approve the claim, they will most likely send payment directly to whoever is doing the work, who should then contact you about how much the company needs upfront so they can order materials or do other tasks required to complete their work.
If you have a specific service provider in mind, they can get started with that upfront. Otherwise, you will need to make payment arrangements with them once they have completed their work and sent you a bill.
Always obtain at least three quotes for any large or expensive project. You should do this because there is no guarantee that your insurance company will pick their bid or even go with them if another offer is substantially lower than what they quoted.
Once everything is completed and paid for, send your documentation back to your insurer and a copy of everything from all parties involved (mainly if multiple people did work on your property), and then wait for payment.
Disputing A Claim
Any insurer will interpret the clauses in the policies differently. This contradictory understanding can lead to many disputes, and some of the claims will end with a rejection. So, a dispute arises.
There are various types of dispute claims and different ways to solve them. For example, home insurance disputes relate to leaseholders and tenants who are not responsible for building insurance. Another example would be a health insurance claim about medical negligence, where third-party medical experts should provide evidence to support the claim.
You can recheck the document’s wording if dealing with a denied insurance claim. Then, if you still believe you are entitled to a claim, you can seek legal advice so that the adviser can see if you need witness evidence to support the claim.
What Happens When There Is An Insurance Claim Against You?
When an insurance claim comes against you, you may dispute the claim. For instance, if you took part in a car accident where both parties were at fault, the other driver might want to file against you.
When this happens, you must say if it was your fault or not. If you disagree with the claim, the dispute process will begin immediately.
All decisions and outcomes will depend on the evidence you offer to support your statement. However, most often, both parties (your insurer and the other party’s insurer) will agree to split the compensation and end the dispute.
Yet, typically the insurance premiums will increase when someone files against you, regardless if it was your fault or not.
When Not To File An Insurance Claim?
Of course, there are situations when it is better not to file an insurance claim. For instance, do not file a claim when the claim amount is close to your deductible, or you filed many claims in the last few months.
Regarding auto insurance, it would be better not to file a claim if you had a minor self-accident, if no one was hurt and if the repair costs are smaller than your deductible. So, if the deductible is $1000, without property damage, or the damage is less than the deductible, pay for the damage without involving the insurance company.
Get An Estimate And Work With The Insurance Adjuster
The adjuster works for an insurance company and makes a cost estimate for the repair/replacements of the property loss. The adjusters respond to the claims you file, assess damages, and work with payouts. Likewise, the adjusters react to the claims you file, evaluate injuries and work with payouts.
You need to get an adjuster to determine the damage for a loss. For example, for a damaged lawn, roof, or garage, the insurer must confirm that the damage was not already present before you made a claim.
Watch what you say to your adjuster because any word you say can backfire on you later.
Insurance can be tricky if you are not familiar with the basics. You need to know when it is time to file a claim and when it is better not to do it. It’s recommended to seek professional advice from an insurance agent if you face a claim. Or, if you feel comfortable contacting your insurance company directly, please visit our service center for more information on submitting a claim.
What Is The Process Of Filing An Insurance Claim?
Depending on the situation, the process may start with filing a police report and documenting damage. Then, you review the coverage and contact the insurance company. Next, you prepare for an adjuster and review the settlement offer. Finally, you receive the payment.
How Do Insurance Companies Pay Out Claims?
Insurance companies either send a check or bank transfer or might pay the person who filed the claim directly. Car insurance companies, in particular, might send you a check to avoid higher compensation for the damages.
How Long Does It Take To File A Claim?
Filing a claim usually takes about a month. After that, the insurance company will process the claim in around 30 days. However, the waiting period depends on many factors.
How Long Will It Take To Get An Insurance Check From A Claim?
The waiting time for a settlement check from the insurance company would be one to two weeks. Most companies mail the bill in a month. Still, sometimes it could take months for a company to send a check.