Types of Insurance Claims

Types of Insurance Claims: First-Party

First-party insurance describes an insurance policy purchased by an individual directly from an insurance provider. When a policyholder experiences an illness or injury or incurs damage to an insured piece of property, he or she can submit a claim for payment or, in some cases, reimbursement, to their insurer. When a policyholder submits a claim under his or her insurance policy, it is considered first-party coverage. An insurance company dealing with that claim must treat the policyholder reasonably and in good faith. If they fail to do so, a policyholder may bring an insurance claim against the insurer, seeking damages beyond the initial contract benefits. When you work with Public Loss Adjusters, you are filing a first-party claim.

Types of Insurance Claims: Homeowner Claims

Most homeowners protect themselves against financial loss due to property damage caused by wildfire, wind, tornadoes, natural disasters such as hurricanes, and robbery or vandalism by carrying residential property insurance. Homeowners pay insurance premiums so that they will be covered if damage does occur. After a break-in, catastrophe or natural disaster hits, you expect your insurance company to pay full value on your claim. Unfortunately, insurers may delay your claim or say the limits of your policy exclude coverage for your incurred losses. Failure to investigate or fairly pay your claim can give a homeowner cause to file a first-party insurance claim against an insurer.

Some common types of insurance claims filed by homeowners include:

• Leak and water intrusion claims
• Water damage claims
• Fire claims
• Electrical damage claims
• Mold damage claims
• Theft claims
• Vandalism claims
• Appliance failure claims

Types of Insurance Claims: Natural Disaster Claims

Many people carry insurance policies to protect them from damages caused by hurricanes, earthquakes, windstorms, and other natural disasters. Wind and hail insurance pays for damages resulting from hurricanes, tornadoes, wind, and hail. Typically, these policies do not pay for damage caused by floods or storm surges. Coverage for damage caused by flooding must be obtained from the National Flood Insurance program. Home, business, and commercial property owners making property insurance claims after a natural disaster may face disputes with insurers concerning policy limits, replacement costs, physical damage, cost of repair damages, business interruption, or application of exclusions. If an insurance company unfairly delays or denies a covered claim, parties insured against natural disaster damages may file a first-party insurance claim.

Some common types of insurance claims filed after natural disasters include:

• Flood damage claims
• Hail damage claims
• Wildfire claims
• Tornado damage claims
• Hurricane damage claims
• Earthquake claims
• Lightning damage claims
• Wind damage claims