What is a Claim in Insurance? If you have this question in mind, this article is for you. An insurance claim is a request made to your insurer to get compensation for damage or loss that your insurance company covers.
Buying insurance is very important to protect your home, business, vehicle, property, health and even life. When unexpected losses happen, filing a claim becomes an option. In this article, you will discover what you need to know about this topic.
What is a Claim in Insurance?
Insurance is a means of protecting yourself from financial loss and transferring the risk to your insurer. While you transfer the risk of financial loss to your insurer, you will be required to pay a premium.
The Premium is a fee that is paid monthly and when you file a claim, the company will have to compensate you for any damage or loss that happens to anything your policy covers. There are different types of insurance claims and you will discover them as you read on.
How Does Insurance Claim Work?
The insurance company you choose, the type of insurance (such as auto insurance), and the insurance policy you select all affect how insurance claims are handled.
To file a claim after a loss or damage, you will need to prepare concrete evidence and contact a representative of your insurer. The insurance provider has the choice of accepting or rejecting the claim.
You might need to pay a deductible if your insurance claim is granted. You must pay the deductible before the insurance company will compensate you for any loss or damage.
The procedure for filing an insurance claim varies on the kind of claim you are making and you will be compensated based on what your policy covers.
Types of Claims in Insurance
We all ensure different things, from health to life to cars to homes. With this, there are different types of claims in insurance and this depends on what your policy covers. The types of claims are explained below.
Health Insurance Claim
A health Insurance claim is a request made to your insurer to receive payments for treatments or prescriptions that your insurance policy covers. This type of claim protects individuals from financial burdens that may arise from an accident or illness.
Making this claim can be done in two ways and it depends on the insurer. Your health care provider may be required to file this claim themselves or you will be required to pay the bills and then file a claim yourself.
Life Insurance Claim
You file a life insurance claim when you want to receive the proceeds of the deceased’s insurance policy. This can be only done by a beneficiary stated by the deceased. You will need to submit the death certificate of the policyholder as evidence.
This type of claim takes a lot of time to process and the compensation is used to cover the burden of financial expenses.
Home Owners Insurance Claim
If you insured your home you may need to file this type of claim when your home is damaged by fire, lightning hail or other natural disasters. If you have a case of vandalization or burglary, you can also make this claim if your home is insured. Lastly, the compensation gotten is used to foot medical bills in case anyone gets injured on your property.
Auto Insurance Claim
This is the most common type of insurance claim. You can make this claim when your insured car gets damaged in an accident, or it gets stolen or lost.
In the case of an accident, your insurer will cover the reappear cost of damages done to your vehicle. Also, your insurer will cover the expenses for any damage done to another person or their property with your car.
How To File an Insurance Claim
The process for making a claim depends on what your policy covers. However, below is a general guideline you should follow when you want to file a claim:
- Contact the Police, this is the first thing to if you are involved in an auto crash or there is a criminal case in your home. This is because the police will carry out an investigation to know who is at fault in the accident case. A police report is also needed as evidence.
- After this, take pictures and videos of the scene of the event. This will serve as evidence. You are also required to gather necessary information and documents such as the contact and insurance information of the other driver. If it is your home that is being damaged, you need to provide a receipt of the damaged items.
- The next step is to contact your insurance company as soon as possible. You can do this online or over the phone by talking to a representative.
Your Insurer’s representative will guide you on how to go about the process. If you are filing a life insurance claim, you need to locate the policy and contact the insurer of the deceased.
You should also know that filing a claim can increase your premium rate. So if the damage is something you can cover on your own, you may consider repairing it on your own.