Filing an insurance claim can be a complicated and somewhat confusing process. There’s no one-size-fits-all outcome, and how your insurance claim is handled largely depends on the fine print in your policy.
In most cases, these steps represent the general framing and timeline of filing a claim with your insurance company to help guide you through the process. To help, here are five basic tips for filing a successful insurance claim and what to expect from the process.
1. Communicate with Your Insurance Company
The moment you’ve suffered a loss, regardless of whether you’re sure it’s covered under your policy, you should communicate the details to your insurance company. While you may not ultimately decide to file a claim, it’s extremely important to maintain constant contact with your insurance agent.
Not only can your provider help you understand the finer details of your policy during the insurance process, but there may be strict rules regarding the amount of time you have to file the claim at all.
For instance, you may have only a day or two to file a renter’s insurance claim after you’ve experienced a loss. But you may have over a year to file a liability claim. The time frame you have to file an auto insurance claim varies by state and by company. Regardless, it’s almost always best to contact your insurer as soon as possible after you’ve experienced a loss.
Also, your insurer may want to see a police report when it comes to car accidents and theft claims (whether it’s home theft or auto theft). Be sure to contact the relevant authorities when you need to after you’ve experienced a loss.
2. Fill Out and Organize Your Paperwork
After you’ve officially filed a claim with your insurance company, you may be required to fill out forms or give a statement regarding the accident or loss. These steps will help your insurance company determine the exact details surrounding the peril and decide to what extent your policy covers the
damage or injuries.
In some cases, this stage may involve the process of sharing photographs of the accident or damage. Especially when it comes to property damage, it’s important to document as much as you can so you can present it as evidence to your insurance company. Taking photos and videos of what happened is extremely useful, as well as utilizing a home inventory list.
3. Have Your Damages Appraised
This is the stage where most insurance companies deploy an adjuster or a third-party contractor assess the full extent of the damage you’ve reported. Your adjuster may want to speak to relevant witnesses and parties, especially in a liability or auto claim, so they may ask you for that contact information.
If you’ve filed an auto insurance claim, this part of the insurance claim process may involve coordinating with a local mechanic or body shop instead of having someone issued to conduct the repairs.
In a liability claim, the adjuster may ask you to make a statement on what happened, and they may ask you for contact details for the injured party. The adjuster needs to put together a picture as best as he can of what happened to accurately determine a payout.
4. Pay Your Deductible First
The final part of the insurance claim process before payment is issued typically involves paying your deductible. Your insurance company won’t approve your claim if your damage amount is lower than your deductible.
In the event of an auto accident claim, if your damages are designated a total loss, the cost of your deductible is typically deducted from the amount of money issued as a payout. If your claim is part of a liability case, your policy deductible may not apply to the issue of payment.
5. What about the repairs?
For a property damage claim, you’ll receive payment from your insurer once you agree on a settlement amount. If you have a mortgage, the payment will likely be made out to both you and your lender, and the money will be released incrementally during the repairs process, so funds are available when
needed. You probably won’t just receive a lump sum check.
You can get estimates and choose contractors yourself, even though the insurance company may recommend some. The contractor will bill your insurer for payment.
If you filed a claim for personal property loss, your provider would reimburse you for the actual cash value or replacement cost of the stolen items so you can replace them.