What Happens When I File an Insurance Claim?

Although there’s comfort in being able to file an insurance claim, the fact is that many people are not aware of what the next steps are after the claim has been filed. Many people will worry about the state of their claim and wonder if they could have done something different to speed up the process.

According to Baderscott, after you’ve been in a car accident you have two options: you can file a personal injury claim through your insurance company or the company of the at-fault party, or you can file a lawsuit with a lawyer’s help. Once you’ve done that, read this detailed information regarding the process of filing an insurance claim.

Timing Is Everything

It’s understandable to want to wait until you have all the proper documentation to file an insurance claim. However, it is important to note that most insurance companies will only offer an individual about 30 days to file their claim. Although it is important to gather all your information, you should avoid making this error in the insurance claims process and potentially going over your deadline to submit.

The Inspection

After you’ve filed your insurance claim, you will then be visited by an adjuster. The adjuster will look at the property in person and determine if the damage can be fixed with a few repairs or if the whole thing needs to be replaced.

In the event that the damage is minimal, then they will offer you a settlement to allow you to make those repairs. If this is the case, you will need to provide them with an estimate of how much the repairs are going to cost. This will ensure that you are being offered a fair settlement.

The Homeowner Process

When you file a home insurance claim as a homeowner, the insurance company will usually send out a check made out to yourself and the mortgage servicer or lender. This is done to protect the lender as they also have a stake in the property’s repairs. It should be noted that not all the money will be released at once. Typically your insurance company will provide you with enough money to hire a contractor. More funds will be released as progress is made.

Auto Insurance Process

In the event that you damage your car, your insurance company will look over the damages. If the damages add up to more than what your car is valued, they will label the car a total loss. Your insurance provider will write you a check for the car’s value at the time of the accident. If your loan is higher than the payment, then you will need to pay the difference to the lender. This is what you call a “negative equity.”

How Long will My Claim Take?

Perhaps the most common question, and rightfully so, is how long a person’s insurance claim is going to take. The fact is that there are a number of factors that come into play that will determine the speed at which your claim is processed.

  • Extent of the Damages
  • Amount of time it takes an adjuster to get to your property
  • If there has been an agreement on compensation

How Your Settlement Is Determined

To begin to understand how a settlement will be determined, the individual will need to read their insurance policy first. It will tell an individual what is and isn’t covered and how settlements are handled in that policy.

Another factor that will affect a settlement is the type of laws that have been enacted within your particular state. Those state laws are included because there will be times when a homeowner insures their property with less than the replacement value. An attorney may be able to provide you with further information regarding these types of laws.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.