The Claims Process Explained

Filing an insurance claim can feel overwhelming, especially during a stressful situation like property damage or a car accident. Understanding the claims process in advance takes much of the anxiety out of the experience and helps ensure you receive the full compensation you are entitled to.

Step 1: Document the Damage

Before touching or moving anything, document the damage thoroughly. Take photographs and video from multiple angles, capturing both wide shots and close-ups. If personal property was damaged, photograph individual items and, if possible, gather receipts, warranty cards, or any proof of purchase.

Create a written inventory of all damaged or lost items, including descriptions, approximate purchase dates, and estimated values. This documentation forms the foundation of your claim and will be essential when working with the adjuster.

For auto accidents, exchange information with all involved parties, take photos of the scene and all vehicles, and obtain a police report if applicable. Note the names and badge numbers of any responding officers and the contact information of witnesses.

Step 2: Contact Your Insurance Company

Report the claim to your insurance company as soon as possible. Most insurers have 24/7 claims hotlines, and many offer online and mobile app claim filing options. Prompt reporting is important because most policies require timely notification, and delays can complicate the process.

When you call, be prepared to provide your policy number, a description of what happened, when it occurred, and the extent of the damage. The representative will assign a claim number and explain the next steps specific to your situation.

If the damage poses an immediate safety risk, take reasonable steps to prevent further damage. Cover a broken window, turn off the water supply if pipes have burst, or move undamaged belongings away from a leaking area. Keep receipts for any emergency repairs or expenses, as these are typically reimbursable.

Step 3: Work with the Claims Adjuster

Your insurance company will assign an adjuster to evaluate your claim. The adjuster may visit your property in person, request additional documentation, or in some cases, handle the assessment remotely using photos and video you provide.

Be present during the adjuster’s inspection and walk them through the damage. Point out everything, including damage that may not be immediately obvious, like water stains behind walls or structural cracks hidden by furniture. The adjuster’s initial assessment often sets the starting point for your settlement, so thoroughness at this stage matters.

Review the adjuster’s estimate carefully before accepting it. If you believe the estimate is too low, you have the right to obtain independent estimates from contractors or repair professionals. Present these to your insurer as supporting documentation for a higher settlement.

Step 4: Receive Your Settlement

Once the claim is approved, your insurer will issue a settlement payment. For property claims, this may be paid in installments, with an initial payment for emergency repairs and additional payments as work progresses. For total losses, the payment may come as a lump sum.

If your policy includes replacement cost coverage, you may initially receive the actual cash value, which accounts for depreciation, and then receive the difference once you provide receipts showing you replaced the items at current prices. This two-step process ensures you are not over-compensated but still receive full replacement value.

Tips for a Smooth Claims Experience

Maintain a home inventory before you ever need to file a claim. Walk through your home with a camera and document your belongings, store the footage in the cloud, and update it annually. This proactive step dramatically simplifies the claims process if the unexpected occurs.

Keep all correspondence with your insurance company organized and in writing whenever possible. If you have a phone conversation, follow up with an email summarizing what was discussed. This paper trail protects you if disputes arise later in the process.