Insurance Claims

Insurance claims are a reality of life and in this article I will show you the basics of preparing for and filing them.  Whether you are involved in a car accident or have to go into the hospital, filing an insurance claim is an essential part of that process.  Here are some basic points to consider when filing insurance claims.

1. Keep up to date on your insurance information

There is nothing worse when you go to file a claim with your insurance company and find that your insurance policy does not cover your insurance claim. Go to sleep.

Many times we pay for granted that our insurance is up-to-date and well handle any emergency. But then when we go to file an insurance claim we find out that either our insurance does not cover our expenses or that our insurance claim is denied because we are no longer covered.

2. Insurance claims must line up with your policy.

What you think is covered or should be covered by your insurance may not be. Remember, your insurance company will pay insurance claims according to what your policy says and nothing else.

3. Most insurance companies are reluctant to pay.

Since insurance is a business  (and a big business at that) you need to remember that they are  in it to turn a profit and one of the ways is by being strict when people file insurance claims.  While they are not blatantly looking to rip you off, in order to turn a profit they have to follow the guidelines of the policies they issue. 

OK, what steps should you take to be sure your insurance claims are approved in a timely manner?

1. Know what is in your policy.

 If you have any doubts or concerns, contact your insurance agent right away to avoid any future heartache.  Pay particular attention to "Exclusions",  "Coverages" and "Definition of terms".  Be sure to read it IMMEDIATELY after receiving it and don't make the common mistake people usually do and put it away with no what is in the insurance policy.  Insurance claims have to be filed based on knowledge, so spending 20 minutes or so when you first get the policy is well worth it.

2. Buy from reputable companies. 

Some good resources for that are: A.M. Best's guide to insurance companies.  A.M. Best is the recognized authority on insurance companies and has an easy  A - F rating system.  Also, there are many resources available to you on the internet. Just search by the insurance company you are considering and look for their A.M. Best rating.  This way you can be sure, that you are not dealing with some fly by night company and future insurance claims will be honored.

3. Make sure your keep all your documents and receipts.

Keep all document you receive about your insurance and keep them in a safe place (In a  safe or safety deposit box, if possible).  Also, have your insurance agent date and sign the receipt as an added safeguard.  Trying to file insurance claims without those precious documents is leaving yourself open to being challenge about your claim with nothing to back you up.

Well, there you have some handy tips on how to prepare for and handle insurance claims.  I will be providing more handy tips and information about this in future articles and posts.

Insurance Claims