What You Need To Know About Insurance Claims
Having the right insurance coverage will protect you from financial ruin in the event of the unexpected. Whether you have auto insurance or health insurance in place, it provides a safety net and peace of mind. To relieve financial stress from you and your loved ones, you can file an insurance claim as long as you have an active policy.
An insurance claim is a formal request for reimbursement or compensation against losses. This is filed by a policyholder to their insurance company. If the provider approves the claim, the payout will help cover expenses like repairs or comprehensive medical exams. Here's what you need to know about insurance claims:
Types of Insurance Claims
If an unfortunate event like a car accident or medical emergency happens, having insurance will allow you to recover financially. Without claims, insurance policies wouldn’t be necessary. The type of claim that you need to file depends on your policy. Let’s explore some of the most common types of insurance claims:
Health Insurance Claims
Typically handled by your doctor’s office, hospital, or clinic, health insurance claims can cover costs for medical procedures and hospital stays. After your visit to an in-network provider, your doctor will submit a claim for the services they provided to you. Emergency medical care and laboratory tests can also be covered in your insurance plan.
Once the claim is processed, the insurance company will either pay the entire cost or just a portion of it.
Home Insurance Claims
If your home is damaged, your insurance provider will send an adjuster who will assess the extent of the damage. After evaluating the property damage, the adjuster will initiate the claims process and determine the appropriate reimbursement amount.
Aside from structural damage, home insurance claims typically cover the following:
- Liability for Injuries to Visitors
- Theft and Vandalism
- Temporary Housing After a Loss
- Additional Living Expenses (ALE)
When reporting your home insurance claim, make sure to notify your insurance company and document your losses. Your insurance provider will pay the settlement amount in the form of a check or through direct deposit. If your claims involve replacements or repairs, the insurance provider may choose to pay the contractor directly.
Auto Insurance
Even if you’re a good driver, there’s no guarantee that you will never be involved in an accident. That’s why auto insurance is mandatory in most states. It provides protection against any property damage or bodily injuries during a car crash.
Auto insurance with full coverage will pay for car repairs and the treatment of injuries to the driver and passengers. If you have collision coverage, you can file a claim regardless of who is at fault. For damage caused by natural disasters, theft, and vandalism, comprehensive coverage will pay for repairs.
When a covered accident happens, call your insurance provider, take photos, and submit the claim within the specified time limit. This will prevent your insurance claim from being denied or rejected.
Life Insurance Claims
Life insurance policies are designed to provide a tax-free payout to beneficiaries if the policyholder dies. If you need to file a claim, your life insurance company should be contacted as soon as possible.
The most common claim requirements include a certified death certificate, policy document, and claim form. Once all documents have been reviewed and verified, the settlement can be processed within two weeks. Life insurance claims are paid in lump sums, installments, or interest income.
When Should You File an Insurance Claim?
- If your property and belongings have been damaged or lost due to a covered event
- If a third party is injured
- If your car is damaged and needs major repairs
- If you caused damage to someone else’s vehicle
- If you’re involved in a car accident and it’s not clear who is at fault
Remember that every situation is different. Reach out to your insurance agent to determine if it’s better to file a claim in your case. If the damages are less than your deductible, filing a claim will not provide any financial benefit. Once the losses are too much to overcome, that’s when you should request compensation or reimbursement.
At Local Retirement Group, our agents can guide you with the insurance claims process. We're here for you when the unexpected happens and when you need to file an insurance claim. To learn more about our services, get in touch with us!
