How to File an Insurance Claim should be the question on your mind when you get into a loss or dangerous event, that can course can affect you financially. The insurance company is not a bank but a risk coverage company.
It does not seek profit from its insured persons or customers, but from those, to whom it lends money. When you take insurance coverage, you are mandated to pay an agreed premium to the company and get indemnified when a risk or a loss happens.
How to File an Insurance Claim
Filing an insurance claim is not difficult; however, you must be sure, that the event of loss did not happen out of carelessness. Let’s you have just been in a huge car accident or your house got burned down by a fire outbreak, pending on the type of insurance coverage you have taken.
However, during the course of this event, you came out alive but your property is damaged. Here is what you should do
- Call the police if necessary.
- Put in place the needed documents to file a claim. This includes pictures of the damaged property, name, address, phone, insurance policy number, “year, make, model and license plate numbers of all the vehicles involved”, and if it’s your house, you will provide the documentation of the house.
- Detailed notes from any conversation you had with the people involved in the accident.
- Contact your insurance company.
- Get an insurance claim from the company.
- Fill out the insurance claim form with the needed documentation. When that is done you should seek medical attention if you are hurt at the occurrence of the event.
If the insurance provider reviews the form and event and finds out that it did not happen out of carelessness, the insured will be paid his claim.
Requirement for Filing an Insurance Claim
Before you file an insurance claim, you should have all the needed requirements and documents, in other to process the claim. Notwithstanding, if you are not aware of these documents, you can use the outlined tips below.
- Name, address and phone number.
- Your house document if you are under a house insurance coverage, car license if you are under a car insurance coverage, death certification if it is life insurance coverage and company documentation if it is your company you insured.
- Insurance policy numbers.
- Year, make, model and license plate number of all the vehicles involved if it a car insurance coverage.
- Photo of the accident from all sides and angles.
These are all you need to put in place when you want to file an insurance claim.
What is Insurance Claim?
When you file an insurance claim, you are making a formal request to your insurance company to receive money or compensation to help you pay for the repair and cover expenses that are course by a loss.
An insurance claim is a compensation or indemnification the insurance company gives to its insured person in a loss that can affect them negatively in financial stability. However, the insurance company will not compensate any insured person whose loss is out of carelessness.
When to File an Insurance Claim?
You can file an insurance claim when you are sure that the loss is equal to or above your deductible. However, it is not advisable to file a claim when you know that the loss is of the little amount that you can pay off.
It is also important to remember that when you file a claim, there is a chance your insurance company will raise your premium rates.
How does Insurance Claim work?
An insurance claim acts as a safety against financial crippleness. As someone who is consigned about its financial state, are advised to take insurance coverage. However, with the insurance company, you are given risk management coverage.
The funds can cover medical bills, act as income replacement, and help your family meet their living costs. If you seek financial dependence, then, claim payout will help you out.
How Long Does it Take to Get an Insurance Check?
This is depending on the number of damages, setting insurance claims can take anywhere from a few weeks, to a few years. For example, if you minor damage, the process may be rather quick than, when a major loss occurs. However, if it is a major loss which involves construction, it may take a few years.
When not to File an Insurance Claim
Insurance companies keep a record of all filed claims, whether they are paid out 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 time period often raise rates.
Before you file a claim, you should be sure you have reviewed the insurance policy, be sure the event did not happen out of carelessness and you have all the needed documentation.
What Happens When an Insurance Claim is made against you?
When somebody makes a claim against your insurance, your insurance company will work to determine whether you were at fault in the incident. If you are involved in a loss, your insurance provider will review and witness the statement to determine whiter you were more than 50% responsible for the loss. Hence, if that is determined, and it was found that you are at fault, the insurance costs will increase to 46%.
Can you cancel an Insurance Claim?
Yes. Most insurance companies will allow you to cancel or withdraw a claim, as long as you are the person who filed the claim. The Claim will remain on your record but will show a $0 payout and it should not affect your insurance rates unless you have made multiple claims over a short time period.
What is Risk Management?
Insurance Risk Management is the assessment and qualification of the likelihood and financial impact of events that may occur in the customers’ world that requires settlement by the insurer and the ability to spread the risk of these events occurring across other insurance underwriters in the market.