Why Does It Feel Like Insurance Claims Take Forever to Settle?

Unpack the mystery behind the lengthy insurance claim process. Discover the reasons why your insurance claim might be taking longer than anticipated.

The Waiting Game: Unraveling the Mystery Behind Insurance Claim Delays

Have you ever filed an insurance claim and found yourself checking your phone or mailbox every day, hoping for a resolution that seems to take an eternity to arrive? You're not alone. The process can feel painfully slow, especially when you're in a tight spot, needing that settlement to repair your car, fix your home, or cover medical bills. At Dorothy, we investigate why insurance claims can take so long to settle, with a touch of empathy for both sides caught in this complex dance.

1. Understanding the Layers of Complexity of the Insurance Claim Process

First and foremost, insurance is a world built on assessing risk, and each claim is a unique puzzle that needs solving. When you file a claim, it triggers a series of steps that can add time to the process. These steps include:

• Verifying coverage

• Assessing the damage

• Determining the claim's value

This due diligence is crucial for preventing fraud, which, unfortunately, is more common than we'd like to think. It ensures that premiums stay manageable for everyone but does add to the timeline.

2. The Devil's in the Details

Insurance policies are legal contracts loaded with details that can affect how a claim is processed. The specific terms of your policy, such as deductibles, limits, and exclusions, can require a thorough review to determine how they apply to your claim. This legal and contractual process can sometimes slow things down, especially if there are ambiguities that need clarification.

3. Negotiation Takes Time

Particularly, in cases involving substantial amounts of money or liability like property damage, negotiations can significantly extend the timeline. Both sides aim to reach a fair settlement, but what "fair" looks like can vary widely.

Negotiations can be straightforward or incredibly complex, involving multiple rounds of back-and-forth that add weeks or even months to the process.

4. External Delays Can Add Up

Often, the insurance company is waiting on external parties. This could be a repair shop, medical providers, or even you, the policyholder, to submit necessary documentation or information. Each player in this process has their own schedule and priorities, which can introduce delays outside the insurer's control.

5. What Can You Do?

While some aspects of the claim process are out of your hands, staying proactive can help.

Keep these tips in mind when filing a claim:

1. Ensure you submit all required documentation promptly and follow up regularly.

2. Keep a detailed record of all communications

3. Consider hiring a public adjuster to file your claim and communicate with the carrier on your behalf

4. Don't hesitate to ask your carrier for updates or explanations

6. A Silver Lining

While waiting for an insurance claim to settle can test your patience, insurance companies have a vested interest in settling claims efficiently to maintain customer satisfaction and trust, and understanding the reasons behind the delays can help ease the frustration. The process is intricate, with many moving parts and checks in place to ensure a fair outcome for all involved. Stay informed, stay involved, and know that, in the end, there are resources to help you navigate the process.

Need a public adjuster to help file your property claim? Dorothy can put you in touch with reputable adjusters directly in your area, guaranteeing a designated resource to help you negotiate with your carrier.

About the Author

Dorothy is the industry-leading climate benefit network, helping homeowners and businesses prepare and protect their property before, during, and after a weather event. Our team comprises compassionate individuals deeply committed to addressing climate challenges, with expertise spanning various fields such as urban planning, climate-focused technology, property recovery, and related industry topics. Together, we work to empower our communities and address the impact of climate-related events.

Sources

• Enjuris Editors, "Timeline for a Personal Injury Lawsuit," Enjuris.com, no publication date given.

• Emily Delbridge, "How Long Does an Insurance Claim Take?" The Balance, last modified March 13, 2023.

• Christopher Earley, "Why Do Personal Injury Claims Take So Long To Settle?" Massachusetts Personal Injury and Workers' Compensation Law Blog, May 2, 2020.