Insurance, by nature, is a form of risk management against certain types of financial losses. It comes in many forms such as auto insurance, life insurance, home insurance, and disability insurance. Each of us, more often than not, has owned or will own an insurance policy at one point in our lives. It is therefore important to be familiar with the process of making an insurance claim.

An insurance claim is an application made by the policy holder for benefits stipulated in the insurance contract. There are several steps in making an insurance claim and these typically differ based on the insurance company and the type of insurance held. However, there are general steps to follow.

The first step is to file the claim. This can be done through a representative of the insurance company or directly to the insurer. There are several methods of filing so check with your insurer which method they recommend. Some require a phone call while others allow claims to be filed online. When making an insurance claim, read your policy thoroughly for you to know the compensation you are entitled to. Also remember to document damages when filing claims for insurances such as auto insurance and property insurance.

Once the insurance claim has been filed, the insurance company will assign an adjustor to the case. The adjustor, also known as an appraiser, will evaluate the validity of your claim and will determine the financial obligation of the insurer. Adjusters customarily visit the site to view the actual damage. For example, if you are filing a claim against your car insurance, it is the adjustor’s job to determine the cost of repair. It is also generally part of the adjustor’s responsibility to assess whether payments should be made in each case or whether insurance fraud may have been committed. Though the adjustor’s findings and assessment are not yet final, most insurance companies have the tendency to adopt them.

After dealing with the appraiser, all you have to do is wait. The insurance company will review the report submitted by the adjuster and will issue you your benefits due if warranted. Benefits are usually issued in the form of a check so you will be asked to collect this from their office or they will mail this to you.

Remember that not all insurance claims will result in benefits being paid. There are a number of reasons why a claim may be denied. These include non-payment of premiums, possible overpayment of damages if approved resulting to financial gain, or non-coverage of the event or damage as stipulated in the policy.