A Guide to How Insurance Claims Work
If something happened to your home or business tomorrow, would you know how to make an insurance claim? Have you read your policy, and do you understand it?
Many people are not sure. This guide sets out the ten main steps in a property insurance claim.
Step 1: Take Photos and Document Everything
- Once it is safe to do so, record all the damage with photographs and, if possible, video.
- If you carry out temporary repairs without evidence of the damage, it can be harder to prove your loss.
- Don’t throw anything away until your insurer has had the chance to inspect it.
- It is better to have too many photographs than too few.
Step 2: Secure the Property
- Take reasonable steps to secure your property and stop the damage getting worse, but only if it is safe to do so. Never put yourself at risk.
- Act promptly. For example, if your home floods and the damage is left for days so that mould develops, the insurer may say that you did not take reasonable steps to limit the loss.
- Don’t attempt full repairs at this stage. Focus on making the property safe and stable. If the damage is severe, a professional drying or restoration company may be needed.
Step 3: Notify Your Insurer and Start a Claim
Every insurer has a claims process that starts with notification, usually by phone or online. Your policy documents will tell you how.
- Most policies require you to notify your insurer as soon as reasonably possible. Check your policy for any specific notification conditions.
- If you intend to use a loss assessor, you can contact one at the same time as you notify your insurer. Appointing a loss assessor should never delay notifying your insurer.
- When reporting a claim, give accurate information. If you are unsure about something, such as the cause of the damage, say so rather than guessing.
- Depending on your policy and circumstances, your insurer may make an interim payment towards immediate costs such as emergency accommodation, clothing or boarding up. Keep receipts for everything you spend.
Step 4: Check and Understand Your Policy
- Read your policy to understand what is covered. There may be a section for your type of loss, such as fire or flood. Read that section carefully.
- Policy wordings are not always easy to follow. A loss assessor can help you interpret how the wording applies to your claim.
Step 5: Start Compiling Paperwork
- Every insurance claim involves paperwork, such as claim forms, receipts, estimates and an inventory of damaged items.
- Take the time to complete it fully and accurately.
Step 6: Prepare and Present Your Claim
- It is generally up to the policyholder to show what was lost or damaged and what it will cost to put right. So it is important to submit a detailed claim that sets out your loss clearly.
- A loss assessor can prepare, present and negotiate the claim on your behalf.
Step 7: The Insurer’s Loss Adjuster Inspects the Damage
- For many claims, the insurer appoints a loss adjuster to visit your property. The loss adjuster assesses, on the insurer’s behalf, whether the loss is covered by your policy and what it will cost.
- If possible, you or someone representing you should be present for the inspection.
- If many items were damaged, the loss adjuster may ask for an inventory.
Step 8: The Insurer Makes a Decision
After the assessment, the insurer will usually either make a settlement offer or decline the claim. It may also ask for more information or documents first.
Insurers regulated by the Central Bank of Ireland must follow the Central Bank’s consumer protection requirements, which cover the handling of claims, including keeping you informed about the progress of your claim. If you are unhappy with how your claim is being handled, you can raise it with the insurer.
Step 9: Negotiations and Disputes
- You do not have to accept the first offer. You can raise items you believe should be included or ask how figures were calculated.
- Negotiation can be complicated, especially if you have little experience of insurance claims.
- Disputes can arise over what is covered or the value of the loss. Depending on your policy, these may be resolved through negotiation, the insurer’s complaints process or the Financial Services and Pensions Ombudsman.
- Policies contain warranties, conditions and exclusions that can affect whether a claim is paid. If a claim is declined, ask the insurer to explain which wording it is relying on.
- If your claim has been declined or you disagree with the offer, you may want to appoint a loss assessor to act for you.
Step 10: Payment
If your claim is accepted, the insurer will pay it in line with the terms of your policy. Your excess will normally be deducted from the payment.
Other Things to Know About the Insurance Claims Process
Every claim is different. Some are settled quickly; others can take months or longer, depending on their size and complexity. You can read more about our claim management process.
A loss assessor acts for the policyholder, not the insurer. Trevor Kelly Insurance Claim Solutions Limited, trading as Insurance Claim Solutions, is regulated by the Central Bank of Ireland (Reg. No. C423441).
For help with your claim, call Trevor Kelly and the Insurance Claim Solutions team on 01 870 9210. Your initial consultation is free.
This article is general information only and is not advice on your specific policy. Cover depends on your policy wording.