4 Insurance Claim Pitfalls to Watch Out for


We get insurance coverage for the peace of mind. We spend a good amount on different insurance plans to ensure financial and operational stability. In many cases, we don’t need to invoke insurance claims to get that peace and stability. However, there are some inevitable and unfortunate moments where one has to file a claim to get the benefit of the coverage for which anyone signs up for any insurance plan in the first place.

However, filing a claim is not as easy as signing up for the insurance package. There are many details that go into file a successful claim. Also, one has to be aware of many filing-related pitfalls to make sure that they are not missing out on any part of the claim.

1) Notifying the Insurer Late

If you have incurred a loss that invokes your insurance plan, then you have to notify the insurer as soon as possible. In many instances, this delay turns out to be quite decisive in establishing the final amount of the compensation that you are going to get. Before signing up any insurance plan, it is better if you read all the terms and conditions including the fine print because it will help you in understanding the repercussions of filing a late claim.

2) Making Statements Without Insurer’s Consent

Corporate entities usually have to take care of this aspect when it comes to filing an insurance claim. Before making any public statement regarding the losses that are covered through insurance, it is essential to get the insurer’s consent in many instances.  This clause is usually added to the terms because any such statements also affect the insurer’s standing in the sector. Don’t get overwhelmed by the losses and setback and issue statements that might affect your claim and aggravate the problem further.

3) Not Having All the Needed Documents by Your Side

Whether its homeowner insurance (read more here) or corporate coverage plan, it is important that you have all the documents ready that will eventually help you in substantiating the claim. For instance, if you are filing a claim for cyber insurance that also covers the downtime losses, then you must have the proper paperwork in place to estimate the related losses to the exact hours.

 Similarly, if you are filing a claim to get the compensation for a kitchen remodeling, then you must have original certified proof of expenses with you. Working without proper documentation is not going to support you in winning the desired claim.

4) Taking an Emergency Action on Your Own

If your insurance policy also assigns the emergency response to the insurer, then you must be aware of this in the wake of an event that commands emergency response and invokes the claim. Barring certain extremely hazardous situations (fires, chemical spills, etc), it is important to immediately notify them for the emergency action. Otherwise, you might have to take a hit on the promised compensation amount.

Lastly, work with trustworthy insurers that have a good reputation for fulfilling insurance claims.

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