Insurance claims can come in different forms and types, from a claim from storm damage to damages incurred from professional negligence. Claims are reported through your insurance company after the incident has occurred and are processed through the agency until a final decision has been rendered.
Definition
An insurance claim can take the form of any number of incidents -- from reporting water damage form a busted pipe to reporting damage from a house fire. An insurance claim is damage you report to your insurance company that is covered under an insurance policy. You might claim an accident under your automobile insurance or your physician can enter a claim for you when you have been treated for an illness. The claim, basically, allows billing to take place between you, the insurance agency, and any third parties involved, such as claimants, service providers or companies.
Types of Claims
There are many different types of insurance claims. Some involve claims on lost property from damage, such as claims from storm damage and fire. Claims also revolve around theft or burglary of property, such as theft from house thieves or automobile theft. Other common claims include professional negligence claims and claims involving permanent disability. All claims have the common trait of reporting monetary damage, lost or stolen property, or personal injury to self or loved ones.
Reporting
Reporting an incident or accident resulting in damage is the initial step in an insurance claim. In the case of an automobile accident, one of the first actions you will do after the crash is exchange insurance information with the motorist. For best results, reporting a claim should be done immediately and in an honest and open fashion. You will commonly be asked an extensive list of questions and will be allowed to tell your story. In the case of damaged property, such as water damage to your house, an inspector from the insurance agency will visit your property to access the damage. In cases of theft, the police may get involved. Accurate reporting is crucial to the claims process.
Fraud
According to the Coalition Against Insurance Fraud, false claims are a major problem but is not easily defined. Falsified claims in 2009 ranged in the billions of dollars. The most common type of fraud reported in 2010 revolved around false medical claims and Medicaid or Medicare. Other types of common fraud include false claims on workers' compensation, false automobile claims and false homeowner's claims. Fraudulent claims increase insurance premiums for everyone and could lead to civil or criminal prosecution.
Tags: insurance claim, false claims, from house, from storm, from storm damage, insurance agency, insurance company
