Back to All ArticlesA Guide to Navigating the Insurance Claim Process
- Financial Planning
As a firm based in Los Angeles, several Quantum clients, friends and loved ones are impacted by the devastating fires which began on January 7th. It is an incredibly challenging time and we want to extend our sympathy and support to all those affected, and express our deep gratitude to the heroic firefighters combatting this historic and devastating fire.
We know that insurance claims can be difficult to manage, and so we have prepared this brief guide to help you navigate conversations with your insurance company. We will continue to update this guide as we receive helpful information.
Whether you're dealing with property damage, medical claims, or auto insurance, understanding how to manage your claim effectively can make a significant difference in the outcome. This guide will walk you through the essential steps and provide valuable resources to help you through the process.
UPDATE: The news reported that displaced clients may have been denied FEMA loans erroneously. This was apparently caused by a glitch in the system, which denied anyone holding insurance policies from qualifying. That was a mistake. They will be notified re: whether they need to reapply or not. You can apply for assistance at FEMA - California Wildfires or calling 800-621-3362.
Document Everything from Day One
The moment an incident occurs, documentation becomes your most powerful tool:
- Take extensive photos and videos of all damage and debris before any repairs or cleanup take place. If this is difficult for you to do, consider asking a friend or family member to help.
- Take a screenshot of any evacuation orders.
- Keep a detailed log of all conversations with insurance representatives, including dates, names, and key points discussed.
- Save all receipts related to immediate repairs, temporary housing, or other expenses.
- Consider using one credit card for all related expenses to simplify record-keeping.
- Create a comprehensive inventory of damaged items, including estimated values and, when possible, original receipts.
Know Your Rights and Policy Coverage
Insurance policies can be complex, but understanding your coverage is crucial. Take time to:
- Carefully review your policy, particularly the declarations page and coverage limits.
- If you do not have access to a copy of your policy, contact your insurance agent or company and they will provide it to you.
- Identify specific deadlines for filing claims and submitting documentation.
- Under California law, after an officially declared disaster, your insurer is required to give you an advance of no less than 30% of your “dwelling” insurance limit and at least 4 months of your available coverage for temporary rent and other additional living expenses you incur due to having lost the use of your home1
- Understand your right to choose repair contractors and replacement options.
- Don’t let insurance company adjusters rush you into a quick settlement. The check they are offering may seem like a lot of money but could be far below what you are entitled to recover. It takes time to calculate what the insurance company owes you after a large loss.
- Read all checks and drafts on both sides before depositing or cashing them. Don’t accept any checks with words like “full” or “final” “settlement” printed on them.
- Do not sign any “release” or “waiver” forms without getting advice from an experienced attorney. Your policy does not require you to sign away any legal rights in order to get paid fairly for a covered loss.
Working with Insurance Adjusters
Your interaction with the insurance adjuster is critical to your claim's success:
- Request credentials and contact information from any adjuster who contacts you
- Take detailed notes during the adjuster's inspection
- Don't accept the first offer if it seems insufficient
- Consider hiring a public adjuster for complex or large claims
- Get your own independent estimates for repairs
Valuable Resources for Policyholders
- United Policyholders (uphelp.org) offers:
- Step-by-step claim guidance and tips
- Sample letters and forms
- Claim help library
- Disaster recovery help
- Guide to returning to your home after a wildfire
- Free webinars and workshops
- State Insurance Commissioners' offices can:
- Provide consumer protection information
- Help resolve disputes with insurance companies
- Offer guides specific to your state's insurance laws
Common Pitfalls to Avoid
Watch out for these common mistakes during the claims process:
- Waiting too long to file your claim
- Accepting a settlement too quickly without full understanding of damages
- Failing to maintain adequate documentation
- Not reading settlement documents carefully before signing
- Making permanent repairs before the insurance company's inspection
Professional Help: When to Seek It
Consider professional assistance if:
- Your claim is large or complex
- You're not confident in handling negotiations
- The insurance company is delaying or denying your claim
- You need help documenting extensive losses
Options include:
- Public adjusters (typically charge 5-15% of settlement)
- Insurance attorneys (usually work on contingency)
- Construction consultants for complex property damage
Stay Organized and Persistent
Success in the claims process often comes down to organization and follow-through:
- Create a dedicated claim file with all relevant documents
- Keep copies of everything you submit
- Follow up regularly on your claim's status
- Document all communication in writing when possible
- Set reminders for important deadlines
Conclusion
Managing an insurance claim requires patience, attention to detail, and persistence. While the process can be challenging, understanding your rights and having access to the right resources can help you achieve a fair settlement. Remember that organizations like United Policyholders are available to provide guidance and support throughout your claim journey.
Remember: Your insurance policy is a contract, and you have the right to receive the benefits you've paid for. Don't hesitate to advocate for yourself and seek help when needed.
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