First Notice of Loss (FNOL)
Candlefocus EditorThe notification process generally consists of the insured party providing some sort of written notification to the insurance company, either to an agent or a claims department within the company. This notice must include all relevant information pertaining to the incident, details of the insured asset, and any important personal information such as policy number. The notice should also unequivocally state that the insured believes they have a valid claim against their policy and which reason the claim is being made.
FNOL is then typically followed by a claims adjuster conducting an official investigation, which includes a review of available evidence and the collection of additional evidence, gathering written or recorded statements from witnesses, and ultimately a thorough analysis and assessment of the claim. The investigation process may also include a review of relevant policy language from the policyholder’s insurance policy. The results of the investigation are then used to determine the validity of the claim, and if the claim is ultimately accepted, the insurance company will issue payment for the loss or damage in accordance with the policy.
Therefore, FNOL is the first step in one of the most important steps in the claims process and has been instrumental in providing the judicial system with a reliable source of documentation when a dispute between an insurer and an insured arises. It is essential for an insured to provide timely notice of the loss or damage that has occurred, especially in cases where there are critical deadlines in the policy that needs to be met in order to be eligible for compensation.