What Is an Insurance Claim, Really?
An insurance claim is you saying: "Hey, remember that thing I've been paying you for? I need it now."
You've been paying premiums—monthly or yearly—for protection against bad things. When those bad things happen, filing a claim is how you access that protection. It's not charity. It's not a favor. It's what you paid for.
Important mindset shift: You're not "asking for help." You're using a service you already paid for. That changes how you should approach this.
The Claims Process: What Actually Happens
Click each step to learn more about what to expect and how to handle it.
1 Report It Fast
Call your insurance company (or use their app) as soon as possible. Most have 24/7 hotlines. They'll ask what happened, when, where, and whether anyone was hurt.
Pro tip: You'll get a claim number—save this like your life depends on it. Write it down, screenshot it, tattoo it on your arm. You'll need it for every follow-up call.
2 Document Everything
Photos. Videos. Receipts. Police reports if applicable. Written notes about what happened while your memory is fresh.
More documentation = stronger position later. This is your evidence. Treat it that way. Insurance companies make decisions based on what you can prove, not what you remember.
3 Meet the Adjuster
The insurance company sends someone to investigate. Their job is to figure out what happened and how much it costs. Be honest and cooperative.
Important: Remember, they work for the insurance company, not for you. You can (and should) have your own contractor or mechanic provide estimates too. Get at least two independent quotes.
4 Review Their Offer
They'll tell you what they'll pay. This is the moment of truth. The first offer isn't always fair—and it isn't always final.
You can (and should) push back if the numbers don't add up. Ask them to explain how they calculated it. Compare to your independent estimates. Negotiate. This is normal and expected.
5 Get Paid
Once you accept a settlement, payment usually arrives within 5-14 days. For property claims, payment might go to you, your repair shop, or (if you have a loan) your lender too.
Make sure you understand what the payment covers before you sign anything. Some settlements include a release that prevents future claims for the same incident.
How Long Does This Take?
You file the claim. Get your claim number. Breathe.
Someone is assigned to your case. They'll reach out to schedule an inspection.
They inspect damage, review documents, maybe interview people. This is where things can slow down.
You get a number. Don't feel pressured to accept immediately.
Once you agree, money arrives within a couple weeks.
Reality check: Complex claims take longer. Major disasters cause backlogs. Coverage disputes add weeks. These timelines are typical, not guaranteed.
Mistakes That Will Cost You
Learn from others' expensive lessons:
Don't Do These Things
Your Claim Got Denied. Now What?
A denial isn't the end. It's the beginning of round two. Here's your game plan:
Step 1: Get it in writing
The insurer must explain why they denied your claim. If they didn't provide a written explanation, request one immediately. This is your legal right.
Look for specific policy language they're citing. This is what you'll challenge.
Step 2: Read your policy again
Does their reason actually match what the policy says? Sometimes it doesn't. Insurance adjusters make mistakes. Policies are complex. They might be wrong.
Pay special attention to definitions, exclusions, and conditions. The devil is in the details.
Step 3: Gather more evidence
New documentation, expert opinions, or additional estimates can change things. If they denied based on cause of loss, get an independent expert to weigh in.
Contractors, mechanics, doctors—professionals who can support your claim in writing are powerful allies.
Step 4: File an appeal
Every insurer has a formal appeal process. Use it. Put everything in writing. Keep copies of everything you send.
Be specific about why you believe the denial was wrong. Reference policy language. Include your new evidence.
Step 5: Escalate if needed
State insurance department: They exist to help consumers. Free mediation, sometimes investigations. Insurers take their calls seriously.
Legal help: For significant claims, an attorney who works on contingency might make sense. They only get paid if you win.
Know your rights: Insurance companies are regulated. If you believe you're being treated unfairly, your state's Department of Insurance can investigate. They've seen every trick in the book.
Different Types of Claims
Auto Insurance Claims
After an accident: exchange info with other drivers, get a police report if needed, take photos of everything. Document the scene, damage to all vehicles, and any visible injuries.
If you weren't at fault, you can file with your insurer or theirs. Your insurer might be faster; their insurer saves your deductible. Consider your priorities.
Homeowners/Renters Claims
Document everything before making emergency repairs (photos, video, receipts). Make temporary fixes to prevent further damage—that's actually required by most policies.
Your policy covers the structure (homeowners), personal belongings, and additional living expenses if you can't stay in your home. Know your limits for each.
Health Insurance Claims
Most claims happen automatically—the hospital bills your insurer directly. For out-of-network care or reimbursement, you'll file yourself with itemized bills.
Always get pre-authorization for big procedures. Keep copies of all bills and explanation of benefits (EOB) statements. Billing errors are common.