Many purchase insurance without properly understanding the process of a claim. Most reasons being to simply comply with their banks loans or purchase a car. However, this can lead to experiencing problems when they actually get into an accident. Frustration rises as they try to solve the unfamiliar issues based on their expectations rather than putting into consideration government regulations and the rights of an insured.
One of the most frequently asked questions is the time it takes to receive compensation. The insurance industry is supervised by the government, and although it varies from state to state, almost all states stipulate insurance claim procedures and compensation periods.
For example, once a claim is opened, the insurance company must notify the claimant that the claim has been filed within 15 days. Another is that if the insurance company denies your claim, it must provide sufficient reasons based on your insurance declaration. Let’s take a closer look at what you can do to receive proper compensation on a claim.
Take time to review your policy declaration
If you have questions on your coverage, contact the insurance company or your agent.
Inform the insurance agent of the damage
Before contacting your insurance company or agent, write down details on the accident. You will be talking to your agent or insurance company multiple times. To keep the story consistent, it is best to keep a memo rather than rely on your memory every time.
Assess the damage as accurately as possible
It is important to provide accurate information when reporting a claim. You may be tempted to give an over-estimation of the damage in order to secure enough payout.
However, insufficient evidence or data to support the extent of the damage will result in unnecessarily longer processing time and you may receive less compensation than you’d want.
Reporting an over estimation, for the damages on a commercial property with a co-insurance clause, may backfire and also put you in disadvantage. Accurate estimation of the damage is crucial in deciding whether it’s worth opening up a claim.
How to get an accurate estimation of the damage
Asking a professional for an estimation of the damage is recommended. For example, calling a roofing company if you suspect hail damage. They will be able to estimate the severity of the damage and the cost to repair it.
Keep a note on the phone conversation you had with the insurance company
If you write down when and what you talked about, you can use it appropriately when needed. Afterall, claim procedures are processed by humans and there is the likely case of mistakes.
Gather all detailed evidence of loss
Insurance companies pay out for damages based on proof of damage or loss. In other words, simply hoping that that adjusters will provide you with sufficient coverage may not be enough. The more concrete and detailed proof provided, the easier the claim process will be.
Keep a copy of all the documents submitted to the insurance company
When submitting documents, it is recommended to keep at least one copy for yourself in case the mail is lost or misplaced. Since insurance companies are also for-profit, they acknowledge the importance of providing quality service to clients. Therefore, each insurance company strives to process claims quickly and fairly. As for insureds, knowing what to expect and what they can prepare to facilitate claim process will make the whole experience smoother.