Loss notifications should always be made to an insurer as soon as possible. There are many reasons for this which including the need for car rentals or emergency lodging after a loss, the time it takes to receive payment from an insurance carrier for a loss and the insurer’s need to investigate a loss in case there is reason to deny the claim. Insurance exists to cover a variety of losses and it is in the best interest to report a loss relatively soon after it occurs.
Depending on the type of loss whether it is from an automobile accident or property damage there may be a need for a quick response. This can come in the form of a car rental if an automobile is damaged and not drivable. This can also come from in the form of lodging if there was property loss to a house or an apartment building. In each of these cases there is an immediate need for assistance after a loss has occurred. Contacting an insurer shortly after a loss can expedite this process and lessen the burden to the victim of a loss.
It generally takes time to receive payment from in insurer for a loss. It depends greatly on the type and amount of the loss. There is usually not a great deal of paperwork involved just a series of questions that need to be answered. Generally, the quicker a claim or loss is reported the quicker the payment will be received. In many instances if an agent or claim adjuster is at the scene the payment may be immediate. This will depend on the agent, adjuster and insurance carrier involved.
When a reported loss exceeds a certain dollar amount an insurer will take some time to investigate the claim or loss. There is a possibility that the insurance carrier could be looking for any reason to deny the claim. Usually there has to be a valid reason such as the cause of the loss for denying a claim. When an insurer investigates a claim they have a specific amount of time to accomplish this task. The period varies by state but is it usually 10 to 45 days to settle a claim.
It is always in the best interest for anyone who experiences a loss to report it to their insurance carrier as soon as possible. The longer someone waits to report a loss the longer it will take the insurer to settle the claim. Insurers exist to pay for losses that occur that are covered by a specific insurance policy. This can be automobile, personal property, or medical losses that can be experienced by almost every individual.