If the question “What is an Insurance Claim?” is running through your mind now, this article is for you. An Insurance Claim is simply a request made to your Insurer to receive compensation for a damage that your Insurance policy covers.
In this article, you will learn more about insurance claims and how to file one. So, keep on reading.
What is an Insurance Claim
Nobody looks forward to having bad things happen to them. However, plans have to be made to prepare for unexpected damages and losses. With this, getting an insurance coverage is a great idea. Your insurance policy is there to protect you from potential damages that may happen to your home, car, business, health etc.
When you buy an insurance, the cost of potential loses are transferred to your insurance company. You will only be required to pay a fee known as the premium. This is like transferring the risk of any potential loss or damage to your insurance company.
A damage could happen to your home or you could get involved in an auto crash. With this, you will have to file an Insurance claim. So, how does the Insurance claim work? You will discover how as you read on.
How Does Insurance Claim Work?
The way the Insurance claim work depends on your Insurance company, the type of insurance i.e., Auto Insurance and the insurance policy you choose.
When there is a damage or loss you will have to mail some documents, call your company’s representative or visit their website to file a claim. The Insurer has the option to accept the claim or deny it.
If your Insurance claim is approved, you may be asked to pay a deductible. The Deductible is a fee that you need to pay before the Insurance company can pay you a compensation for your loss or damage.
The Insurance claim process depends also on the type of claim you are filing. An auto insurance claim is shorter than a Home Insurance claim.
What is an Insurance Claim Adjuster?
An insurance claim adjuster is an agent who determines how much your Insurance company should pay you when you file a claim.
The Insurance claim adjuster does this by speaking with you, inspecting reported damages, interviewing witnesses and lots more. The Insurance claim adjuster is also known as an Insurance Adjuster or claim adjuster.
Also, the Insurance Claim adjuster carry out researchers on police and medical records if necessary and inspect any property involved. With this, he or she can determine the insurance company’s Liability. The adjuster comes into the picture after you have filed an insurance claim.
When Do I File an Insurance Claim?
You may be wondering if you should go ahead to file a claim when a damage or loss happens. Well, you can file a claim in some cases but it’s not advisable to file a claim when the cost for the damages is less or a little over the deductible.
Also, when you file insurance claim there are chances that your premium rate will be increased or your policy might even be canceled. However, you are strongly advised to file a claim when you or someone else gets injured in an accident, when it’s not clear on who is the cause of an accident and when you can’t pay for the damages yourself.
When an unexpected event happens, it’s wise to talk to a company’s representative to know if filing a claim is worth it.
How to File an Insurance Claim
Having discussed this much about Insurance Claim, this section of the article will educate you on how to do so. The process for filing the claim depends on the type of claim but the general procedures have been outlined below:
- Contact the Police. This is the first thing to do if there was a crime incidence in your home or you were involved in an auto crash. This will also help you determine the who is at fault and provide valid evidence.
- Take Pictures and videos of the event. Taking picture and video of damages is also a form of evidence. You can as well avoid discarding damaged properties until they are inspected.
- The next thing you have to do is to gather the necessary documents and evidence. If it is an auto crash, you can get the names, and contact info of other parties involved in the accidents. If you want to file a home insurance claim you can gather anything that has a record of the damaged property’s value.
- After this, you can contact your insurance company. If you were in an accident, it is also recommended you contact the company’s representative right on the scene. The representative will guide you on the process of filing the claim.
If it is an Health claim you want to file, the medical provider may be asked to submit the claim themselves. In some cases, you will be required to pay the bills by yourself and then submit the claim yourself.
In the case of a life insurance claim, you will have to contact the Insurance company of the deceased to file a claim, You will also need to submit the Death certificate of the deceased.