What does a claim do to your insurance?

What does a claim do to your insurance?

Types of sinister

When one speaks of a claim, one usually imagines a malicious or malicious person. In the insurance world this meaning is different, since a claim in a policy refers to an insured event or situation that is subject to certain economic coverage.

What does this mean? For example, if you have a health insurance policy, it will not be activated until a claim affects your body, that is, if you suffer from an illness that requires medical attention. In that case, the insurance company will have to cover the expenses in medicines or operations required for your treatment.

It is important that this term not be confused with risk, which refers to an unfortunate event that could affect you or your assets in the future. In this case, the loss would be the materialization of the risk. For example, your house is exposed to a burglary or traveling by car exposes you to a collision. Until the

theft or collision does not occur, they are latent risks; whereas if both losses occur, your home or auto insurance will be activated to offer you compensation for the losses incurred.

Characteristics of an insurance claim

The above is called claim settlement, i.e., “the process by which the occurrence of the loss is determined, whether it is covered by a contracted insurance policy and if so, how much compensation or payment is due”.

In this order of ideas, if you had an accident that is an insurance claim (i.e., that your policy does cover), you will need to report the event to the insurance company to initiate the indemnity process. You can do this:

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On the other hand, in the particular conditions you will find the requirements for contracting the insurance, information about your beneficiaries (if applicable), deductibles, duration of the insurance, among other details.

It is always a good idea to have your policy contract at hand so that you can consult it at all times, and of course, at the time of contracting, ask all the pertinent questions to make sure you choose the product that suits you best.

Definition of insurance loss

There are two forms of coverage: replacement coverage, which provides the funds necessary to replace your property with the same type, quality and value of the items lost; and actual value coverage, which also provides coverage but discounts the depreciation of the items to be replaced, so the settlement amount will be relatively less than if replacement coverage were used.

Viewed in this way the choice of one type of coverage or the other may put you at a disadvantage if you select actual cost coverage. True, if you choose this style when you purchase your policy, you may save a little money on your premium, since it is usually at least 10% less expensive, but you should consider whether it is worth the discount for risking a large loss in the event of a disaster due to the depreciation of your belongings.

You can purchase additional coverage in advance in case a repair or replacement loss turns out to be greater than expected. For example, your home suffers a fire and you realize that to rebuild it as it existed before, construction costs in the area are skyrocketing and will cost you much more than what insurance would compensate you for. If you have extended replacement coverage, it will add up to a percentage of your coverage to the settlement, such as 20% more, so that you do not have to use out-of-pocket funds to complete the rebuild.

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Claims examples

Below you will find a manual with a brief description of the main insurance policies in demand in the market and a guide to help you proceed in the event of an accident or unforeseen event.

Health insurance provides compensation and/or reimbursement to the insured and his or her beneficiaries in the event that medical treatment is required. In these cases, the insurance covers the incurred medical expenses covered in the contracted policy.

If you are having problems collecting insurance and do not know what to do about it, write to us here and a lawyer from our team will contact you as soon as possible to help you out of this situation.