What Happens When I Make an Insurance Claim?

The insurance claims process is often lengthy and slightly mysterious. Understanding what goes into processing a claim can help a policyholder know what to expect.

Claim Definition

When insured property is damaged, lost or stolen, policyholders contact their insurance company to describe what happened. This initial contact is referred to as a claim.

Claims Adjusters

When a claim is filed, a claims adjuster is assigned to the case. The adjuster's responsibility is to investigate the circumstances and situation surrounding the claim, including inspecting the damaged property, conducting witness interviews and obtaining estimates for repair or replacement. The adjuster will also review insurance coverage to determine what the insurance company and the policyholder are responsible for financially.

Time Frame

Because of the research involved in claims processing, claims can take several weeks to settle. In more complicated situations with extensive damage, more investigation may be necessary, and the settlement can take months or years to resolve.

Settlement

After the investigation is complete, the insurance company will offer a settlement. This is a sum of money the company deems fair to cover replacement and other costs. If you disagree with the amount, contact your insurance agent to file a dispute.

Warning

Once a claim is submitted, don't wait to be contacted with the results. Claims adjusters are assigned to hundreds of claims at once, and newer claims may be pushed to the back of the list. Contact your adjuster by phone or email occasionally to follow up on your claim's status.

References

• Allstate: Claims Process