insuranceClaim For Insurance - How Is Claim Processed
insurance claim

What is an insurance claim?

When you claim for insurance, you formally request your insurance provider to cover costs or expenses incurred after sustaining an insured loss.

An example of a home insurance claim may be due to a flood in your basement from a burst pipe. Now you'd want to claim coverage for damages to the wall and flooring where water leaked out and other renovation and repair costs. You can also claim personal property loss or damage by the water.

A life insurance claim is the one that you request on behalf of the deceased person. After submitting the required documents, such as a death certificate, your agent will accompany you to take the steps in handling the policy payout.

If you have a car and it accidentally collided with another vehicle, you may claim insurance to cover collision damage. Most of the Canadian people are under no-fault insurance. That means, whether you're at fault or not, you'll have to work with your insurance provider for the claim and payout processing.

But before you contact your insurance company asking for financial aid, there are some crucial things that you need to consider.

Before filing an insurance claim

  1. Keep safe - take precautionary measures to reduce further risk to yourself and your property.
  2. Document the damage sustained by your home or vehicle using your camera. It's one crucial evidence you can show your insurer.
  3. If you are a homeowner policyholder and you claim insurance, make a list of actual items that are damaged or lost. Never take advantage, though, and be opportunistic. Don't list things you don't own. It's insurance fraud. The insurance company may deny it if they find out.
  4. If you claim for your vehicle's insurance, take note of the drivers involved, their cars, and their insurance policies.
  5. Avoid doing repairs alone. Except when you have to fix something right away to avoid further damage, it would be best to leave things to the professionals. May it be a contractor, a mechanic, or the insurance adjuster.
  6. Discuss with your insurer. They're interested to know the events and what you've done to fix the problem.

These are the common steps you can take before you claim insurance.

Home insurance

You want to claim insurance if the situation calls for it. But after three years of no insurance claims, you may qualify for a claims-free discount, which will be 20% off your premium. You may not be eligible, though, for the claims free discount for three years when you claim regardless of the amount.

Additionally, you may be required to hold off on other insurance claims from moving forward to keep the premium from increasing further. It's both a choice but a risk. A broker can help you, so you can take advantage and try to reach out.

The broker's role is to enlighten you with the insurance claims process, what you will expect throughout, and always be available for the client's queries. When you claim insurance, the broker needs to explain the process of insurance claims initially, especially if you're a first-time claimant. Furthermore, it would also be critical for brokers to carefully explain the process during natural calamities, where insurers' resources are maximized.

How long will it be to process an insurance claim?

It depends on the extent and complexity of how slow or fast the insurance claim process will be. For instance, you may opt to have your vehicle towed to another city because you are already familiar with the vendor or mechanic. However, the paperwork, communication, and lack of direct contact slowed the process down. If the client doesn't agree to the settlement offer or the spare parts are still in transit, you can also consider timeline extensions. Natural disasters, such as floods, can also affect much when you claim for insurance and its processing.

To expedite the claims processing, you may have your details ready and know your facts. Also, work with your insurer. Follow the needed recommendations, especially when you have injuries that result from the claim because it will be your family members that will need to ensure that essential documents are duly signed.

The bottom line on Claim for Insurance

To experience the easiest way for a smooth claims processing experience, be prepared. Know and understand your policy. If you have any questions, ask them. Always take inventory of your essential hard copies digitally, so you can still have the soft copies when calamities fall. Explore some add-ons to your policy and check if it's right for your circumstances.

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