6 Things to Consider Before Filing an Insurance Claim

No one wants to think about filing an insurance claim. However, sometimes life throws you into disarray: a car accident, storm damage to your home, or a medical emergency forces you to take advantage of your policy's protection.

 

But before asking your insurance company for help, here are six things to remember.

The following article will guide you through six essential factors to make your insurance claim more enjoyable and successful.

Why should you consider your claim carefully?

Not all insurance claims are a good idea. Suppose you don't need help understanding your policy's powers and limitations. In that case, you may find yourself paying higher premiums, not qualifying for coverage in the future, and not receiving the payouts you expected.

Before filing a claim, it is essential to consider your specific circumstances and insurance coverage. Evaluating your case at the beginning can save you time and money.

Fortunately, deciding whether to file a claim is easy when you know what to be worried about.

6 factors to consider before filing a claim

We'll look at the six most common factors you need to consider when filing an insurance claim. Are you ready to learn more? Let's explore it!

1. Your deductible

Do you know your deductible, the amount you must pay before your coverage begins? If the total amount is still less than the deductible, it usually doesn't make financial sense to file a claim to repair a parked car or replace stolen items.

Finally, you must complete the claims process to receive a zero-fat check from your insurance company. Check your insurance statement to see what your deductible is.

2. Premiums may rise

In some cases, filing a car damage claim can increase your insurance premiums by up to 40% or more. Tolerance depends on the insurance company and the circumstances.

Unfortunately, some insurance companies will not penalize you for a single claim, but many will. Therefore, you should contact your insurance agent to learn about their policy.

Almost all insurance companies purchase home contents insurance after the initial payment.

3. Your claims history

Your insurance company may consider your claims history to determine your risk profile and the premium you pay.

If you have made other claims in recent years, the new claim may cause these rates

to be doubled, or you may not qualify for the program.

Be careful when making claims for consecutive related events.

4. Excluded events and items

Every policy has exclusions, which are events or items that are not covered by the policy. For example, damage from floods and earthquakes is typically not covered by standard home contents insurance.

 

Car insurance policies often limit coverage to custom parts or commercial car use. Before you sign your award, read the exclusions section.

It's only possible to file a claim if you can get coverage for the claim you want.

5. Documentation requirements

To file a successful claim, you must provide documentation and proof of loss, which may include photos of the damage, police reports, receipts, or inventory.

Think about your documents and what is needed to prove your claim. If the case is insufficient, it is not worth filing a lawsuit, or it will be dismissed.

6. Complaint deadline

Keep in mind that most insurance companies have deadlines for filing claims. While a property damage claim should be filed within a year, an auto or health insurance company may limit processing time to a few days or weeks.

If it has been some time since a significant loss occurred, you should review your plan to make sure you are still filing on time.

Take action now and submit your insurance claim.

The six most important things to consider before filing an insurance claim include your deductible, the potential for premium increases, your insurance history, policy inclusions and exclusions, required documentation and target deadlines.

All the above factors will protect you from delusional decisions leading to wasted costs and frustration. A hasty and doomed prosecution could do more harm than good, even if you want your insurance money.

If you have suffered significant losses and the investigation has fulfilled your contractor's obligations, filing a lawsuit can result in immediate recovery of your property and finances.