Insurance claims: Five tips on how to process your insurance how long it will take

Insurance claims: Five tips on how to process your insurance how long it will take

Understanding the insurance claims process

Insurance claims is vital for safeguarding our assets and loved ones. Interestingly, people often buy insurance, hoping they will never need to use it. However, accidents and disasters can occur unexpectedly, and when they do, having the right coverage can be a significant relief.

When unfortunate events occur, policyholders must file an insurance claim to use their policy benefits. Although this process can be complex, having the right information can make navigating it much easier for both individuals and groups seeking to receive their payouts.

In this segment of our client education series, Insurance Business will explore the insurance claims process, detailing how it functions across various policy types and its effects on insurance premiums. We invite insurance brokers and agents to distribute this article to their clients to assist them in managing the often-complicated task of filing a claim.

What is an insurance claim?

An insurance claim is a formal request made by the policyholder to their insurer for reimbursement of covered losses or damages. This could involve various scenarios, such as car accidents for auto Insurance claims, damage from storms for homeowners’ policies, or urgent medical procedures for health insurance plans.

Policyholders can only file claims for losses or events explicitly outlined in their policy documents. Therefore, it’s essential for them to thoroughly review these documents to grasp their coverage. An experienced insurance professional can help interpret the complex terminology.

Readmore Insurance Types of Policies: Definition, How It Works 2024

How does an insurance claim work?

The insurance claims process typically starts with filing a claim, which informs the company of an unexpected incident. This initial step requires completing paperwork that includes documentation of the covered loss and submitting it to the Insurance claims provider.

If it is deemed valid, the insurance company will make the payment to the policyholder, or an allowed representative. Depending on the policy type, the insured may need to pay the deductible before receiving coverage.

How do you file an insurance claim?

The process for filing insurance claims can differ based on the type of policy. Here’s an overview of how claims are submitted for various types of coverage.

How to file an auto insurance claim

The Insurance claims Information Institute (Triple-I), an organization dedicated to enhancing public understanding of insurance, has outlined six practical steps to simplify filing a car insurance claim.

1. Report the accident to your insurance provider promptly: This includes notifying them even if the driver is not at fault or if the damages seem minor. The insurer can inform you if the incident is covered under your policy.
2. Use the company’s mobile app to file a claim: Many insurers now offer apps that allow policyholders to report claims, upload supporting documents, and track the status of their claims.
3. Determine the required supporting documents: Typically, you’ll need a “proof of claim” form and a copy of the police report.
4. Be mindful of deadlines: Insurers have strict time limits for filing claims to prevent fraud.
5. Check if your policy covers rental cars: This is crucial if your vehicle is in the shop for repairs and cannot be used.
6. Provide all requested information: Triple-I advise to complete claim forms accurately to avoid processing delays and keeping detailed and organized records related to the claim.

It’s helpful to have your insurance broker’s phone number readily available. While a general office number is useful, having the specific number and extension of your agent is even better. Contact the agent or broker who provided you with this information to get their direct phone number.

How to file a home insurance claim

The process for filing homeowners’ insurance claims is like that of auto insurance, though there are some differences because of the distinct damage that homes and vehicles can experience. For those a covered event damages whose properties, Triple-I suggest the following steps:

1. Report any criminal activity to the authorities: This includes incidents of theft, burglary, or vandalism.
2. Notify your insurance provider immediately: The insurer can clarify what is covered by your policy and what documents are required. Your insurance provider can offer support and reassurance during this challenging time.
3. Complete the claim forms: The insurance company will provide the forms that the policyholder needs to fill out promptly.
4. Arrange for an insurance adjuster to evaluate the damage: The insurer will send an adjuster to inspect the property. It’s beneficial for homeowners to be present during this inspection to answer questions and point out damages.
5. Make temporary repairs: Homeowners should take steps to prevent further damage but should keep damaged items until the adjuster has completed their assessment. Keep receipts for any repairs done, as these may be needed for reimbursement.
6. Document lost and damaged items: Creating an inventory can help expedite the claims process.
7. Keep receipts for relocation expenses: If the home is deemed uninhabitable, keep receipts for any additional living expenses for reimbursement.
8. Ask questions if needed: Homeowners should not hesitate to contact an insurance professional or their state department of insurance if they have questions about the claims process.

How to file a health insurance claim

• Many times, health insurance policyholders do not need to file claims themselves, as medical service providers often handle this process on their behalf.
• For health insurance plans where policyholders must file their own claims, they may need to pay the healthcare provider directly and then submit the receipts and other necessary documentation to their insurer. Claim forms are usually available on the health insurance provider’s website or, for employer-sponsored plans, through the company’s human resources department.
• Before seeking medical care, health insurance policy holders should familiarize themselves with their plan’s coverage, determine who is responsible for filing claims, and understand the necessary documentation. This preparation can help avoid unexpected medical costs and streamline the reimbursement process.
  If you need assistance, check out our guide on finding affordable health insurance plans. While the advice is tailored to the US, some tips might apply to your country as well.

When is filing an insurance claim not worth it?

Financial experts often advise consumers to be strategic about what they claim. If the cost of damage to a vehicle or property is close to or only slightly exceeds the deductible, it might not be worth filing a claim. Deductibles are designed to discourage Insurance claims companies from processing numerous small or low-value claims.

Consumer advocates recommend that Insurance claims policyholders discuss their insurer’s policies with their agents well before they need to file a claim. Some agents are required to report any discussions about potential claims to the insurance company, even if the policyholder decides not to file, as this can influence the perceived risk and impact premiums. Reach out to your insurance provider now to get the most relevant advice for your situation and policy.