Insurance offers protection for the unexpected moments that turn ordinary days upside down. Whether it’s personal insurance protecting your home or business insurance safeguarding your livelihood, it can’t prevent the initial shock when your phone rings at 2 a.m. with your business alarm reporting a break-in. It won’t spare you the dismay of discovering 6 inches of water flooding your first floor from a cracked toilet upstairs. And it certainly can’t eliminate the dread when you get the news that a customer had a slip-and-fall injury while on your property.
While we can’t turn off the human emotions that come with bad news, we can lower the stress of handling its aftermath. Relief starts with understanding the steps of the insurance claims process for both personal and business coverage. This guide will help you know what to expect, from filing to payout, so you can focus on what matters most: getting your life or business back on track quickly.
Step 1: Respond to the Incident
Immediately after an incident:
- Prioritize safety: Call 911 if anyone requires medical attention or if there’s an immediate danger.
- Document the scene thoroughly: Capture photos and video from multiple angles, gather witness contact information (including license plates, picture of driver’s license, auto ID Card), and note any visible hazards that contributed to the incident.
- Notify your agent or broker: Most policies require timely notification, with some carriers expecting to be informed within a few days of the incident.
Step 2: File the Claim
Once you have secured the scene and notified your insurance provider, gather the essential documentation that your insurer’s adjuster will require.
What Information Do You Need To Provide To The Claims Adjuster?
- Insurance policy number and contact information
- Detailed description of the incident, including date, location, and circumstances
- Supporting materials like photos, police reports, and witness statements
Filing Tips for Each Coverage Type
Personal insurance policy claims need specific documentation. Auto accidents require police report numbers, officer name and badge number. Home insurance claims benefit from receipts showing original purchase prices. Document losses thoroughly in auto, home, or renter situations.
Business insurance claims require additional detail. Include property damage assessments, liability incident reports, or business interruption details with financial records showing lost income.
Step 3: Work With the Adjuster
The insurer assigns an adjuster to inspect damages and evaluate coverage. This person plays a crucial role in the process, investigating facts, determining policy applicability, and calculating settlement amounts. For best results, follow these tips:
- Cooperate fully. Timely responses and thorough records help prevent delays or disputes.
- Schedule inspections promptly. Provide requested documents without delay.
Step 4: Review the Settlement Offer & Plan Repairs
After your claim is evaluated, you’ll receive a settlement offer based on your policy terms. Before accepting it, make sure you understand your deductible and coverage limits. After meeting your deductible:
- Personal insurance typically covers repairs or replacement up to your policy limits.
- Business insurance may also cover property restoration, lost income, or legal settlements, depending on the policy.
Choose reliable contractors or mechanics for property or auto repairs, and work with them to set realistic timelines for completion. Throughout the process, keep your insurance agent informed of any updates or changes, especially related to repairs or renovations. Be sure to document all communications with your insurer and adjuster to maintain a clear record and help protect your interests.
Common Roadblocks in the Claims Process
Policyholders may encounter challenges during the claims process, such as:
- Documentation issues: Delays can arise from incomplete paperwork or missed deadlines.
- Coverage disputes: Misunderstandings about policy exclusions or coverage limitations can lead to disputes.
- Maintenance and damage mitigation: Insufficient maintenance records or failure to mitigate further damage after a loss may affect claims.
- Unfair claim handling: Insurers are legally required to act in good faith. If a legitimate claim is denied without a valid reason or is subject to unnecessary delays, policyholders may have grounds for an Insurance Department complaint or legal action.
How Brooks, Todd & McNeil Supports You Through Claims
We help you prepare for a potential claim by reviewing your personal and business insurance in advance. Our agents collect necessary documentation, work with insurance carriers, and advocate for you, even assisting in escalating issues if there’s a concern about bad faith.
If you find yourself needing to file a claim, we have a dedicated claims department that is ready to help you with the claims process so you can have peace of mind and reassurance that your claim will be handled properly and efficiently. We will be with you every step of the way. Our licensed claim professionals can act as a sounding board, they can facilitate and expedite communication, and can involve our President to escalate the matter up the ladder to Senior Claims Management at the insurance carrier, if or as needed.
Prepare for Your Next Claim
Take steps now to make future claims easier:
- Maintain up-to-date inventories with photos and receipts for home or business.
- Secure essential documents in fireproof storage. Create digital records with backups.
- Review your coverages annually with your agent to make sure you’re not underinsured.
- Establish relationships with trusted contractors before emergencies arise.
Partner With Experienced Claims Advocates
Understanding how to navigate the claims process empowers you to act confidently during challenging times. Brooks, Todd & McNeil has a dedicated claims department with 75 years of combined experience to help our clients navigate the process.
Contact Brooks, Todd & McNeil today to review your personal or business insurance and learn how we can support you through the claims journey, should that need arise. We work for YOU!!!