A formal request to an insurance company requesting a payment in line with the terms of the insurance
policy is considered a claim. Insurance claims are reviewed by the company for their validity and then paid
out to the insured or requesting party (on behalf of the insured) once approved.
An insurance claim is the actual application for benefits
supplied by an insurance company. Policy holders need to
first file a claim before any money can be disbursed to you,
the Insured, other contracted service. The insurance
company may or may not approve the claim, based upon
its own assessment of the conditions.
People who take out insurance policies must maintain
regular payments called monthly premiums to the insurance
companies. More often than not, these monthly premiums
are used to settle someone else's claim or to build up the available resources of the insurance company.
Occasionally, however, a major accident can happen that causes real financial harm, such as a hurricane,
a flood, a tornado, a burst pipe or a fire. At this point, the insured policy holder has the right to file an
insurance claim in order to receive money from the insurance company.
In general, the insurance claim is launched by calling the insurance companyâ€™s toll free number or by
completing a form on line. Numerous times, a recognized authority - like a public adjuster or an attorney can file the necessary forms directly with the insurance company. The policy holder may not want to file if
the damage is minimal as any acts that are not weather associated or an â€œAct of Godâ€ related may
increase your monthly premiums or give cause for canceling your policy altogether.
After a claim is filed, the insurance company may very well send out an adjuster to assess the damages.
This person's job is to objectively evaluate the damage and prepare a repair estimate for the insurance
company. This is to prevent feasible fraud by ensuring that the damages are related to the peril and for
building contractors who may inflate their expenses for further payment. Insurance businesses tend to
accept the adjustor's assessment as the final word, but it is extremely important to remember that this
adjuster works for the insurance company, not you. Items are often overlooked or underpriced, so it is
crucial that you have a public insurance adjuster that works for you to review this.
A few insurance claims might not be recognized by the insurance company for any number of reasons. If a
claimant's monthly premiums haven't been paid entirely, the policy itself might not be active. Also, some
items might not be covered under your policy or have â€œendorsementsâ€ that have excluded it from your
insurance plan. One more reason that a claim may be declined is a failure to fall under covered conditions.
The majority of insurance plans spell out particular areas which qualify for benefits, and if the accident or
damage claim was caused by carelessness or an inevitable "Act of God," the insurance company has the
right to withhold payments. A claim is the only way to officially request benefits under an insurance policy,
but until the insurance company has evaluated the situation, it will remain merely a claim, not a pay-out. It is
extremely important to have a trained person take a look at policy if you are denied. Insurance businesses
regularly refuse claims which should have been approved.