How to Make an Insurance Claim
Some people will never have a reason to claim from their insurance companies; if that’s you, then great news! However, in cases where homeowners have had damage to their property, they’ll often need to file an insurance claim. As a policyholder, it’s essential to know what to expect from the insurance claims process, so if you need to make a claim, you’ll be equipped with all the correct information.
This post is for anyone wondering how to make a claim to their insurance company. Even if you don’t have a reason to make a claim now, it’s helpful to understand the process if you or anyone you know needs to make a claim. This article will outline the steps to be used as a checklist for a smooth claims process.
1. Take Photos and Keep Notes
The first step is pretty self-explanatory. As soon as any damage occurs, whip out your phone or camera and take as many photos as you can. Additionally, if anything has broken, save them until your insurance company has a chance to inspect them.
When taking photos, it goes without saying that the sooner you take the photos, the better. If you can take pictures or videos while the damage is occurring, such as hailstones or tornado damage, that would be ideal. Showing the insurance company the type of damage that affected your home will help give them a better idea of the whole picture.
You might not need to use all the photos you took, but there’s no such thing as too many photos. On the other hand, if you have too few, this may affect your claim in a negative way. So, it’s always better to have more than less.
2. Mitigate the Damage in a Secure and Safe Way
Part of your insurance policy will require you to try and minimize the damage at the scene. You may need to call an emergency service in some cases to help with this. Don’t put yourself in danger to do this. For example, if large hailstones are falling, don’t go outside to fix any damages. Wait until any active storms or events have passed and take any actions once it’s safe to do so.
Failure to take any action to mitigate the damage may result in issues claimed by the insurance company later. For example, if you ignore flood damage and the house develops mold, which makes the issue worse, your insurance company may give you a hard time when you try and get it covered. Of course, you don’t have to actually make repairs. In fact, you shouldn’t, but you should try to mitigate the damage. If the damage is extensive, consider contacting a professional remediation and restoration company to give you a quote.
3. Contact Your Insurance Company
The process with your insurance company begins when you file your claim. Some companies have online and app-based claims forms. If you prefer to speak on the phone, you can call in to talk to a representative who will start taking the details of your claim. It’s important to note that if you want to consult a public adjuster to contact them before you start filing your claim. Many public adjusters have their own process of pursuing claims, and this will help them get the best payout possible from the get-go.
The sooner you contact your insurance, the better, as the damage will be easier to prove. Also, if the insurance company requires any additional information, you can provide them with that, as the incident will be fresh in your memory.
When filing your claim, only give details you are absolutely sure about. Don’t provide estimates, guesses, or any incomplete information. Doing so can make your claim more complicated or result in your claim being denied altogether.
Some insurance companies offer emergency funds in some scenarios. For example, if you need to stay at a hotel after your house has burned down, your insurance company may be able to provide you with immediate funds to help you through this time on a short-term basis. Additional expenses such as these may be referred to as “additional living expenses” or “ALE.” If you see these being referenced, they refer to expenses like hotels, car rentals, meals, etc.
4. Checking Your Insurance Policy and Understanding It
Be sure to read your policy after starting your claim. It would be ideal to look at your policy before you begin the claims process to familiarize yourself with the procedure and what’s covered. The more equipped you are, the easier it will be to navigate the process. Make sure to read the section that refers to the type of damage you have extra carefully.
Your policy must be written in plain English and not contain any complicated phrasing. Unfortunately, this isn’t always the case, and there may be wording that you don’t understand. If your policy is overly complex or you don’t understand any of it, it might be a good idea to consult a public adjuster to plan your next steps.
5. File the Paperwork
It goes without saying that filing paperwork is an essential part of any insurance claim. It sounds like a hassle, but it’s a necessary evil. Make sure to complete these forms with the greatest care, only providing information about which you are absolutely sure.
6. Getting Your Own Estimation
Sometimes policyholders will hire someone to come out and take a look at the damage for an independent assessment. For example, if you’ve had a recent downpour of hail, you might want to hire a roofer to give you an estimate of repairing the damage.
Doing this will give you the advantage of knowing how much your claim is worth. Having this information will prevent any insurance company or adjuster from taking advantage of you or persuading you to take a lower payout.
7. Waiting For the Adjuster to Evaluate the Claim
Once the claims process has begun, the insurance company may send a claims adjuster to inspect the damage and start the evaluation. The adjuster sent by the insurance company will be there to assess whether and how much should be paid out. They’ll also decide if the damage sustained is covered by your insurance company.
When the adjuster arrives out for the inspection, it’s always best to have someone who represents you, such as a public insurance adjuster, present. The adjuster from the insurance company may ask you for an inventory if there are multiple damages. Generally, if you have damage to your house and to its contents, you’ll receive two separate payments from the insurance to cover each category.
8. The Insurance Company Presents Their Offer or Denies Your Claim
Soon after the insurance adjuster from the company arrives at your home, your claim will be examined, and there will be two possible outcomes. Either your claim will be successful, and your insurance will offer a settlement, or the insurance company will deny your claim.
Sometimes there are long delays or requests for more paperwork. If there are excessive requests or your claim is being made difficult by additional administrative roadblocks, your claim may be turning into a bad faith insurance claim.
All insurance companies are legally obligated to respond in a reasonable time to their insurance claims, and a failure to do so leaves them open to complaints or lawsuits. If you find that your insurance company is not cooperating with you, it may be time to consult a public adjuster or an attorney to get the process moving.
9. Dispute and Negotiate Your Settlement
Once you receive your offer from the insurance company, you are free to accept or deny it. Some policyholders opt to negotiate the claim as they believe certain costs which were not covered in the settlement should be covered. You should always examine your settlement and make sure it covers all your expenses. Don’t be afraid to negotiate!
If you choose to negotiate your settlement, it can be a complicated process. Sometimes, insurance companies will try and reduce their payout by saying the damage is superficial or cosmetic. These disagreements can lead to a complicated and lengthy process.
Such disagreements are common and usually involve what’s covered by the insurance and the policy’s value. If the negotiation process doesn’t go anywhere, you might have to get an appraisal, mediation, or engage an arbitrator. This may draw out your claim even further, but if the result is a higher payout, then it will be worth it.
Some insurance companies may have clauses in their policies that allow them to deny your claim outright in certain situations. If you have been denied or offered a lower settlement than you think your claim is worth, you might want to consider hiring an attorney or a public adjuster to help you negotiate a higher settlement. Due to their extensive experience, they can offer a wealth of knowledge to policyholders.
10. Receive the Payment from the Insurance Company
Once the process is complete, your insurance company will send you a check for the damage and other expenses. In some cases, you’ll receive these funds via a direct deposit. You’ll be required to pay the deductible. The insurance company will usually take this straight from the settlement. For example, if you get $5,000 from your settlement and the deductible is $500, then your total payout will be $4,500. The insurance company may seek confirmation that the contractors have been paid once the repairs are made.
You might get multiple payments for damages to your home, damages to your contents, and any emergency costs you had in the meantime.
A Few Important Points to Note:
Your insurance company may opt to pay the contractors directly. If this is the case, your insurance may ask you to sign a “direction to pay” form. This is an important document to read, and it authorizes the insurance company to make a payment on your behalf. Once the requested work has been completed, you can approve the payment, and it is sent to the contractor. This sounds like a convenient way to have your bill settled, but it can be risky. It isn’t recommended to make a payment directly to a contractor until the work has been completed satisfactorily.
If you have a mortgage or live in a co-op, you might have to list these parties as co-insured parties on your claim. This listing means that they have a financial interest in your property and can ensure that the appropriate repairs are made. This condition will be listed in your mortgage policy or co-op paperwork, so be sure to consult the paperwork.
Wrapping Up
The process for claiming on your insurance might be a lot for some to handle. It can be a long, complicated process. That’s why many people opt to hire public adjusters to guide them or even take over the claim altogether. A public adjuster is a licensed professional who you employ to ensure the best outcome and highest compensation on your claim.
In addition to simplifying the claims process, public adjusters can also negotiate and solve disputes with your insurance company. This is especially the case where your insurance refuses to pay out or engage with you about your claim. Public adjusters can also help fight your claim where the insurance company offers a low settlement amount.
If any of the above sounds familiar or you want to simplify the insurance claims process, Crestview Public Adjusters might be the best option for you. Having a public adjuster on your side might just make your claims process a lot easier! If you have any insurance questions, don’t hesitate to reach out for a free consultation.
