What Is an Insurance Claim and How Do I File One?

An insurance claim is a formal request for payment to an insurance company after the policyholder experiences damages, loss or liability from a covered incident. Payments issued by the insurance company are used to replace or repair your property, pay for medical expenses or cover legal fees in a lawsuit.

Insurance claims can be a little tricky to understand if it's your first time. This guide breaks down how insurance claims work, the different types and the process for filing.

Key Takeaways If you suffer a covered loss, such as a collision with another driver or a house fire, you can file an insurance claim to get reimbursed for your losses. When filing an insurance claim, you will generally need to provide documentation, such as pictures, receipts of lost items and a copy of a police report. The claims process can take anywhere from one day to over a month depending on the severity of the claim and the insurance company. In general, you should avoid filing an insurance claim if your losses fall below your deductible. Filing an insurance claim can result in a rate increase when you renew your policy.

How Does an Insurance Claim Work?

The purpose of filing a claim in insurance is to protect the policyholder — you — against financial loss on a covered claim. Insurance claims commonly involve costs related to repairing or replacing personal property, medical treatment, loss of life and liability for injuries and damages. In addition, if you’re held liable for another party’s injuries or damages, then you may also be covered for your legal fees.

The process of filing a claim will depend on your insurance carrier. Often, the claims process will involve submitting documentation (e.g., police reports, receipts, photos, videos). Your carrier may send an adjuster to personally inspect the damages and calculate your losses.

If the claim is approved, you pay the applicable deductible and your insurance covers the remaining cost. The amount you are compensated or reimbursed for will depend on the amount of coverage you purchased. Keep in mind that when your policy renews, having a history of claims where you're at fault — rear-ending the driver in front of you, for example — can result in a higher premium increase than for claims where you're not at fault.

What Types of Insurance Claims Are There?

There are several different types of claims in insurance, ranging from home and auto insurance to health, business and life insurance.

Policy	Description
Auto	Pays for property damage or medical bills when you're at fault in an accident. Additional coverage, like collision and comprehensive coverage, provide protection against at-fault accidents, fire, vandalism, falling objects, theft and more
Homeowners	Covers the cost of rebuilding your home, replacing your stolen or damaged belongings, and personal liability for damage/injury. Insurance carriers offer additional coverages like flood and earthquake protection
Renters	Covers the cost of replacing your belongings, if damaged or stolen, and personal liability for damage/injury. Loss-of-use coverage pays for living expenses if you're temporarily displaced from your home
Health	Pays for covered medical expenses, such as doctor visits and hospital stays, although the healthcare facility will usually file the claim on your behalf
Commercial	Protects the company against property damages and liability, including legal fees during a lawsuit, loss of income, bodily injury, malpractice and more.
Life	Beneficiaries of the policyholders are paid a certain amount after the insurer receives the policyholder's death certificate

What Happens When You Make an Insurance Claim?

After filing an insurance claim, your insurance carrier may send an adjuster to assess the losses and damages. Depending on the investigation, the insurance carrier will determine if the incident is a covered event and how much payment you will receive to cover the loss.

When Should You File an Insurance Claim?

In general, it’s inadvisable to file an insurance claim for small accidents, especially when your losses do not exceed your deductible, which is your out-of-pocket cost before your insurance coverage kicks in.

Otherwise, you risk adding an incident to your claims history and your premium may go up when you renew your policy or switch to another carrier.

For example, say you accidentally backed your car into your mailbox and the only damage is a slight dent that costs $100 to fix. Your car insurance deductible is $500. In this case, you’re better off just paying for the repairs yourself than alerting your insurance company.

How Long Is the Insurance Claim Process?

The timeframe for processing an insurance claim from beginning to end can take anywhere from the same day to several months and it will largely depend on the severity of the claim and your insurance company. For example, one of Lemonade’s biggest marketing points is that some claims are approved instantly.^[1] Meanwhile, another carrier like GEICO posts that the time frame for processing a car insurance claim settlement can take up to 48 hours to about six months.^[2][3]

The state you live in can also affect the claims process. In California, for example, insurance companies must either accept or deny a property claim in writing within 40 calendar days after receiving the claim.^[4]

How To File an Insurance Claim

Follow the general steps below for filing a claim with your insurance company.

1. File a Police Report if Anybody Is Injured

For incidents involving criminal activity or serious injuries, you should always notify the local authorities. Filing a police report is useful because it can prove the incident occurred and possibly prove you were not at fault for the incident. In some cases, this official document can speed up the claims process to help you get your settlement quicker.

2. Document the Damages

As soon as it is safe, document the incident and any damages or losses as soon as possible. Pictures and videos will come in handy when assessing the damages or losses after filing a claim. If you’re filing a home insurance claim, having a home inventory on hand can make it easy to valuate your personal property losses.

If you're injured, be sure to keep track of your medical documents and bills as well. According to Andrew Pickett, a personal injury attorney and the owner of Andrew Pickett Law, a whiplash injury claim can start as high as $5,000. If the other driver was at fault, you will want to submit this evidence to their insurer to ensure that you are properly compensated.

3. Contact Your Insurance Company

Depending on the insurance carrier, you can start the claims process through an online claim form, mobile app or by phone. Be sure to have the necessary documentation ready, including a police report, photos and videos of the incident and receipts showing the value of the damaged property.

Company	Phone	Online Portal
Allstate	800-255-7828	File online claim
American Family	800-692-6326	File online claim
Farmers	800-435-7764	File online claim
GEICO	Varies by policy	File online claim
Liberty Mutual	800-225-2467	File online claim
Nationwide	800-421-3535	File online claim
State Farm	Varies by policy	File online claim
Travelers	800-252-4633	File online claim

Keep in mind that you may be required to file a claim within a certain time frame, such as within 30 days after the incident occurred.^[5] As a result, you shouldn’t delay filing a claim and should start it as soon as possible.

4. Undergo the Investigation Process

Some carriers, like Lemonade, may approve an auto insurance claim within minutes.^[1] In other cases, especially with a homeowners insurance claim, the process may be more extensive. If your home suffered a fire, for example, then your insurance carrier may send an adjuster to assess the condition of your home and the cost of necessary repairs.

After the investigation, the adjuster will use their findings to determine the appropriate amount you will be given to fix or replace your damaged property (e.g., repair a roof, replace a totaled vehicle).

5. Accept the Settlement and Repair the Damages

If you're agreeable to the settlement amount, you can accept the payment. Typically, your settlement will be based on the lost item’s actual cash value, which deducts for depreciation factors like age and wear and tear, although you may be able to pay extra to get reimbursed for the cost to replace the item today.

Your insurance carrier will typically issue payment via check or deposit, which can be used to pay for your repairs. If you’re filing a claim for a totaled car, then you will be reimbursed for the actual cash value of your car by default.

If you're filing a home insurance claim, you may receive multiple checks. In some cases, your first check will just be an advance against the total settlement and the rest will come later. You may also receive a separate check for your additional living expenses if your home is undergoing extensive repairs.

OPTIONAL: Dispute the Settlement Offer

You can dispute the claim if the claim is denied or you disagree with the settlement amount. One option is to submit an internal appeal with the insurance company — your insurance carrier would review your case and make another decision. Another route is to submit a complaint to your state's insurance commissioner, speak with a public adjuster or take legal action. (Just be mindful of any legal fees that could easily outpace the cost of your damages and losses.)