What Is a Reasonable Amount of Time for a Renter's Insurance Company to Settle?
Renter's insurance combines personal property insurance with liability insurance and medical payments coverage. Each type requires its own claim-handling procedure, and the time line for claim payments can vary greatly. In general, the insurance company is required to pay claims within 60 days of the proof of claim or judicial ruling.
Other People Are Reading
-
Personal Property
-
The best way to get claims handled quickly involves the insured's own record-keeping. Keep a household inventory off-premises that lists all contents in the apartment with pictures of the more exotic or valuable pieces, art, collections or equipment. This inventory, as well as receipts or records of purchases, aids the claims adjuster in valuing the claim. Adjusters tend to pay immediately for smaller claims. The paperwork requires approval at higher management levels as the claim amount rises. In any case, settlement must occur within 60 days of proof of claim.
Liability
-
Liability covers the renter for damages to other people or their property. If a welcome mat trips a passerby and injures her, the liability coverage could pay for it. This coverage may take up to three years to issue a payment for the event because the insurance company has the right to investigate liability claims. People don't always sue or even bring the claim to the owner's attention for some time. The proof of loss is subjective in matters of liability and the damages difficult to measure. Once agreement is reached or a court makes its ruling, the insurance company has 60 days to make payment.
-
Medical Payments
-
Medical payments coverage pays for medical treatment for guests or other people injured on the premises, but pays as a no-fault courtesy coverage. For example, a neighbor's child slams his own hand in the apartment door while playing with the tenant's child. Rather than arguing liability, the insurance company pays for an X-ray, medical care and bandages up to a relatively low limit, perhaps $1,000. These claims tend to get paid quickly because the coverage avoids longer litigation issues.
Claims Settlements
-
The claims personnel want to settle claims quickly and efficiently. They train to offer solid advice and know their coverages. They also train to prevent the company from overpaying for undocumented claims, or, worse, fraud. The claimant helps the process along through proof-of-claim techniques such as providing pictures of each room or a household inventory. A well-documented proof of claim leads to the quickest settlement.
-
