The Insurance Claims Process
Now that you understand how insurance can help protect your assets and how to file a claim, what are the steps involved if something does go wrong? How do these insurance claims work? Each type of insurance will have a slightly different process but there are several similarities across the board. In a nutshell, you’re filing the claim to get compensation to cover the losses involved. It’s important to note here that if you haven’t met your deductible throughout the year, you will be required to pay that first. It’s crucial to know what your deductible is as you want to make sure that damages are over that number. Once you have filed your claim someone will come to assess the costs of the damages and how much they will be to repair. Here are a couple of things to consider when waiting for payments to come through from the insurance company.
Insurance may sometimes pay the contractor directly: in some cases where a mortgage or loan holder is involved, they may want to be in charge of the repairs process. This being said, in some cases, the check may be made out to both you and your lender.
Additional living expenses checks should be made out to the homeowner: this has nothing to do with damages and should be made directly to the homeowner.
Your items, such as in a homeowners insurance claim, will be calculated as cash value: this means that depreciation will be included.
Reimbursement for personal items may require a receipt: there will likely be a timeframe on this so consult with your agent. Also, it’s important to note that if there is a total loss of home and personal property, insurers must follow state law and will usually pay out the policy limits.
You may receive multiple checks: in some cases, an offer may be made at the time of damage assessment as an advance and will be taken off the total payment settlement amount.
It’s important to understand your policies to the best of your abilities so that if a disaster occurs you’re already prepared to file a claim. If you know the ins and outs of your policies, such as deductibles, what is covered under the policy (the fine print), and how to efficiently file a claim the process will be that much easier. Stay in touch with your agent every step of the way. If you need help understanding your policies, contact us anytime. We’d be happy to help.