How Long Should It Take to Settle a Homeoweners Claim?
If you knew that your claim would take 30 days to complete, would you be dissatisfied if it took 25? If you knew that your claim would take 45 days to complete, would you be upset if it took 46? Not likely.
But what if you thought the claim would be settled in two weeks and it took three months? Most of us would be irate.
Claim departments are notorious for not explaining the claim process or setting realistic expectations, and shame on them! If you have never experienced a homeowner claim it is likely you will move forward with a fair amount of anxious worry.
Without any first hand knowledge of how long it takes to process a claim, most of us might assume all claims take about the same amount of time.
Auto claims, being the most common type of claim, are often our only point of reference.
However, using auto first party claims as the standard is going to cause dissatisfaction because auto claims are resolved quickly and require minimal participation from the policyholder.
The insured only has to make the vehicle available for inspection, and payment and repairs are typically completed in less than 30 days.
Unfortunately, homeowner property claims move much slower, and the involvement of the insured is critical throughout the process.
As a policyholder you should be aware of how the claim process works, what the claim department SHOULD be doing, and what YOU need to do to keep the process moving forward.
Knowing up front the amount of time it will take to complete the claim process helps to manage your expectations.
Average Time for Settlement What are is the average number of days it will take to process the most common homeowner claim: Minor theft claims --10 - 20 days Major theft claims-30 days Water under $3,000- 10-20 days Water, major damage-30-45 days Wind/Hail minor-12-20 days Wind/Hail major--45 days Fire minor-30-45 days Fire Major-6-9 months Total loss cause by any peril 12 months or more.
Additional factors extend or shorten the life of your claim, some of which you have control over, others you do not.
Any claim regarding personal property requires the policyholder to provide information about his/her property.
This could involve completing an inventory with detailed descriptions, including make and model number and when and where the item was purchased.
In the case of theft or total loss, you may also be required to dig up receipts or photos of the property.
Add the number of days it takes for you to get this information to your adjuster into the Average Time for Settlement numbers.
The carrier may choose to waive inspection for claims involving minor damage to your property.
If this is the case, you may be asked to send in your own estimate for review.
The adjuster will discuss the estimate with your contractor who gave it to you, and when the two reach an agreement on the cost of repair, a check, less your policy deductible, will be sent to you.
In a situation such as this, you have a great deal of control on how quickly your claim is processed; the faster you get the estimate in, the faster the claim is settled.
Another method for adjusting a minor damage claim is referred to as "fast track".
This term is used when the adjuster calls you and asks you to describe the damage over the phone, and he writes a repair estimate while speaking to you.
If you and the adjuster reach an agreement, a check will be issued immediately.
Before you accept the check, make sure that the adjuster agrees, and documents in writing, to re-adjust the claim should the actual repairs exceed the amount you have been given.
If your carrier uses "fast track" estimates, it will be helpful if you have measurements and material information on hand when you call the company.
Catastrophe claims, especially major catastrophes such as those caused by hurricanes, are by their very nature going to take longer to adjust.
It takes time to move adjusters into the area, and even when adjusters are available, civil authorities may have the areas closed so an inspection is not possible.
Catastrophes, or CATs as the insurance industry calls them, are unique and often create adjusting problems for policyholders.
Any claim in which you and the insurance company disagree about coverage or the amount of damage done to your property will extend the time it takes to settle your claim.
But what if you thought the claim would be settled in two weeks and it took three months? Most of us would be irate.
Claim departments are notorious for not explaining the claim process or setting realistic expectations, and shame on them! If you have never experienced a homeowner claim it is likely you will move forward with a fair amount of anxious worry.
Without any first hand knowledge of how long it takes to process a claim, most of us might assume all claims take about the same amount of time.
Auto claims, being the most common type of claim, are often our only point of reference.
However, using auto first party claims as the standard is going to cause dissatisfaction because auto claims are resolved quickly and require minimal participation from the policyholder.
The insured only has to make the vehicle available for inspection, and payment and repairs are typically completed in less than 30 days.
Unfortunately, homeowner property claims move much slower, and the involvement of the insured is critical throughout the process.
As a policyholder you should be aware of how the claim process works, what the claim department SHOULD be doing, and what YOU need to do to keep the process moving forward.
Knowing up front the amount of time it will take to complete the claim process helps to manage your expectations.
Average Time for Settlement What are is the average number of days it will take to process the most common homeowner claim: Minor theft claims --10 - 20 days Major theft claims-30 days Water under $3,000- 10-20 days Water, major damage-30-45 days Wind/Hail minor-12-20 days Wind/Hail major--45 days Fire minor-30-45 days Fire Major-6-9 months Total loss cause by any peril 12 months or more.
Additional factors extend or shorten the life of your claim, some of which you have control over, others you do not.
Any claim regarding personal property requires the policyholder to provide information about his/her property.
This could involve completing an inventory with detailed descriptions, including make and model number and when and where the item was purchased.
In the case of theft or total loss, you may also be required to dig up receipts or photos of the property.
Add the number of days it takes for you to get this information to your adjuster into the Average Time for Settlement numbers.
The carrier may choose to waive inspection for claims involving minor damage to your property.
If this is the case, you may be asked to send in your own estimate for review.
The adjuster will discuss the estimate with your contractor who gave it to you, and when the two reach an agreement on the cost of repair, a check, less your policy deductible, will be sent to you.
In a situation such as this, you have a great deal of control on how quickly your claim is processed; the faster you get the estimate in, the faster the claim is settled.
Another method for adjusting a minor damage claim is referred to as "fast track".
This term is used when the adjuster calls you and asks you to describe the damage over the phone, and he writes a repair estimate while speaking to you.
If you and the adjuster reach an agreement, a check will be issued immediately.
Before you accept the check, make sure that the adjuster agrees, and documents in writing, to re-adjust the claim should the actual repairs exceed the amount you have been given.
If your carrier uses "fast track" estimates, it will be helpful if you have measurements and material information on hand when you call the company.
Catastrophe claims, especially major catastrophes such as those caused by hurricanes, are by their very nature going to take longer to adjust.
It takes time to move adjusters into the area, and even when adjusters are available, civil authorities may have the areas closed so an inspection is not possible.
Catastrophes, or CATs as the insurance industry calls them, are unique and often create adjusting problems for policyholders.
Any claim in which you and the insurance company disagree about coverage or the amount of damage done to your property will extend the time it takes to settle your claim.
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