The insurance claims process can seem complex and overwhelming. However, with a few tips and tricks you can easily demystify the process and avoid unnecessary stress and hassle. First of all you will want to understand the scope of your coverage and contact your insurance company right away. Then you will need to file a claim.
In regards to filing a claim, you will want to make sure that you have all of the documentation as documentation is essential. Make sure you can prove all of the damage as well as the cost of repair or replacement. If the insurance company offers payment that you feel is insufficient, be prepared to negotiate. You never want to rush into a settlement that you feel is unfair. Always keep copies of correspondences with the insurance company and if you do have questions, don’t hesitate to ask.
Perhaps most importantly, you will always want to tell the truth when filing an insurance claim. Fraudulent insurance claims occur when someone attempts to defraud an insurance provider by either filing a false claim or exaggerating a claim. It is important to note that fraudulent insurance claims are actually illegal and can carry very serious ramifications.
Fraudulent insurance claims can largely be broken into two types of fraud: soft fraud and hard fraud. Hard fraud occurs when someone deliberately plans or invents a loss that is covered by their insurance policy in order to receive payment for damages. For example, if someone were to fake their death in order to fake their death in order to collect their life insurance money, this would be hard fraud. Similarly, if someone were to purposefully total their car in order to collect the insurance money on it, this would also be an example of soft fraud.
In contrast, fraudulent insurance claims that involve soft fraud tend to be much less serious. This kind of fraud is much more common than hard fraud and is actually sometimes referred to as opportunistic fraud. This type of fraud consists of policyholders exaggerating otherwise legitimate claims. For example, when involved in a collision an insured person might claim more damage than was really done to his or her car. Soft fraud can also occur when while obtaining a new insurance policy. For example, an individual who lives and drives in New York City might choose to register and insure their car fraudulently to an address in Pennsylvania in order to obtain lower car insurance rates.
Overall, with proper documentation processing insurance claims is a smooth and easy process. And of course, always tell the truth. Ultimately, with some organization and effective documentation, the insurance claim process actually isn’t too difficult.
