Claim
A formal request submitted to an insurance company for payment of a covered loss under a policy.
An insurance claim is the process by which a policyholder notifies their insurer of a loss and requests payment under the terms of their policy. The claim process begins with reporting the loss—usually by phone, app, or online portal—providing the details: date, cause, description, and estimated damage. The insurer then assigns a claims adjuster to evaluate the loss and determine the covered amount.
Timely reporting is important; most policies require notification "promptly" or within a specified period. Delayed reporting can complicate the investigation and in some cases give the insurer grounds to reduce or deny payment. While the claim is being processed, document everything: photographs of damage, receipts for emergency repairs, police reports for theft or accident, and any communications with the insurer.
Filing a claim—even for small losses—can increase your future premiums. Before filing, compare the loss amount against your deductible and the likely premium impact over the next three to five years. For losses only slightly above the deductible, paying out-of-pocket may be more economical long-term.
Real-World Example
After the hailstorm shattered the car's back windshield, the owner filed a comprehensive coverage claim and received a check for $800 after her $500 deductible.