Insurance is a means of protection against financial loss. While it may seem like an extra unwanted expense you have to pay every month, it’s actually very important to have. Insurance claims can be a bit confusing, but we are here to shed some light on what they are and how they work.
What Is It?
An insurance claim is a formal request by a policyholder to an insurance company to help them receive coverage or compensation for a covered loss or policy event. Once an insurance company approves a claim, they will issue a payment to the insured person or to whomever is the correct person to receive the compensation.
How Insurance Claims Work
The purpose of paid insurance claims is to stop the policyholder from having to pay for something out of pocket, or for them to be compensated for something they are owed. If the policyholder is submitting an insurance claim due to damage that they have caused, there is a high chance that their rates will rise. However, if the damage was clearly due to something else, some insurance companies will forego raising the policyholder’s rates.
The individual or group who has the insurance, is required to pay a premium each year. This premium is the amount of money that the insurance company will charge you for the policy that you have selected. The type of policy you have will determine what accidents or damages an insurance company will take the financial burden for. The premium is what could possibly be increased due to an insurance claim.
What to Do
Now that you know what an insurance claim is, and what it may entail, you may be asking yourself, how do you go about filing one. Here are some tips to follow when attempting to file a claim:
- Call the police, if necessary
- Document everything that happened
- Contact your insurance company as quickly as possible
- File a claim either online, over the phone, via an app or with an agent
Once you have contacted your insurance company, the representative you speak with will give you advice on which of the four options presented above you should use to file your claim. Once your claim in submitted, an insurance agent will review it and make a recommendation for how much the insurance company should pay for the losses endured by or accumulated by the policyholder.
If you want to work with a company that you can trust with your insurance claims, contact Lighthouse Insurance. They always have your best interests at mind!