CandleFocus Glossary Editor
An insurance claim is a legal document that is submitted to an insurance provider in order to receive compensation or coverage for a policy event or loss that is covered by the insurance. This is done when something happens within the boundaries of the agreement between the policyholder and the insurance provider.
In the case of property-casualty insurance, such as for car or home, filing a claim can often cause insurance premiums and rates to increase in the future. Insurance companies use past claims and losses to help set policies and premiums for their customers, so when a claim is filed and then approved, the insurance provider will have to factor this additional expense into their future calculations.
When filing an insurance claim, the policyholder should always be in contact with their insurance provider. This will involve completing paperwork, collecting required evidence, and more. The insurance carrier may need to inspect the damage before they can process the claim. Depending on the insurance coverage, added services such as a rental car while the damaged vehicle is being inspected or the clean-up of a property may also be provided to the policyholder.
Once all the paperwork and necessary documents are received, the insurance provider will review them to determine if the claim is covered. If everything is found to be valid and in compliance with the policy, then payment for the covered loss will be issued to the policyholder or an approved interested party. If there is any issue with the claim, the insurance company will explain why and what additional information is required to process it.
In conclusion, an insurance claim is a formal request by a policyholder to an insurance company to receive compensation or coverage for a covered loss or policy event. It’s important to keep in mind that filing an insurance claim can often lead to rate hikes to future premiums, so care should be taken to follow the necessary steps when filing one.
In the case of property-casualty insurance, such as for car or home, filing a claim can often cause insurance premiums and rates to increase in the future. Insurance companies use past claims and losses to help set policies and premiums for their customers, so when a claim is filed and then approved, the insurance provider will have to factor this additional expense into their future calculations.
When filing an insurance claim, the policyholder should always be in contact with their insurance provider. This will involve completing paperwork, collecting required evidence, and more. The insurance carrier may need to inspect the damage before they can process the claim. Depending on the insurance coverage, added services such as a rental car while the damaged vehicle is being inspected or the clean-up of a property may also be provided to the policyholder.
Once all the paperwork and necessary documents are received, the insurance provider will review them to determine if the claim is covered. If everything is found to be valid and in compliance with the policy, then payment for the covered loss will be issued to the policyholder or an approved interested party. If there is any issue with the claim, the insurance company will explain why and what additional information is required to process it.
In conclusion, an insurance claim is a formal request by a policyholder to an insurance company to receive compensation or coverage for a covered loss or policy event. It’s important to keep in mind that filing an insurance claim can often lead to rate hikes to future premiums, so care should be taken to follow the necessary steps when filing one.