When you make an insurance claim, you may receive claim checks and payments at various stages. If you’ve received a payment that doesn’t cover all of your expenses, or you think you should get more, don’t panic, another claim check may arrive. Understanding how claim payments for insurance work will help you get the full value of your claim and understand who will be paid for what.
Who Gets Claim Payment in an Insurance Claim?
An insurance claim check can be issued to different people when you have an insurance claim with an insurance company sfamor it may be addressed to you as the owner of the damaged item or named insured on the policy.
Here is a list of people who can receive the claim payment and how to find out who will receive the claim check:
- The owner of the object: If you are the owner, you will get the claim check to yourself if you are the sole owner of the property in case of home insurance. This applies to your personal content at home.
- The Mortgage Company: If you have a mortgage, the claim check could be in writing to you and the mortgage company. To cash the check, you will need to work with your mortgage company. Each mortgage company has its own procedure, so make sure you know how it works. This does not apply to mobile phone or other insurance, as only the owner can receive the check.
- The Coop or Condominium management company: If you have cooperative or condo insurance, in some cases, the check can be made out to the management company.
- Contractor: Any entity or person who is a named insured on the policy for the damaged property.
Why is the claim check issued to different people?
Depending on the circumstances, claims checks are made to persons or entities other than you where the third party has an interest in ensuring that claim monies are used to effect repairs or replacement, or where a third party is the final recipient of the money (eg an entrepreneur).
Insurance companies want to make sure they meet their contractual obligations to mortgage lenders on the policy, so they have to list them as named insureds, which also means they can get construction-related claim payments. .
Examples of claims for which multiple claim checks will be issued
If you have a home insurance claim, you may receive several different checks before your claim is settled. Here are some examples to help you understand what to expect for your claims payment.
An insurance company may end up issuing multiple checks in one claim. By asking your insurance company questions during the claims process, you can better understand what to expect. It’s also helpful to understand what you’ll need to provide to get paid. Every claim is different, disaster claims or major claims may be handled differently than a petty theft or burglary. Some policies, like high value home insurance, also offer more flexible payment terms, the only way to know is to ask.
Is there a deadline to file a claim and get paid?
Each insurance company will have time limits within which you must claim your loss in order to be eligible to make your claim. Make sure and ask your adjuster about it. You don’t want to miss deadlines and shell out.
The best way to get your claim paid in full as soon as possible is to stay on top of what the insurance company needs to issue your payment. Learn about procedures and follow up regularly to ensure your adjuster receives all the information and doesn’t miss a thing.
Once your claim is complete, you will likely sign a notice stating the total amount paid in the claim. This document will indicate that the claim is being closed and that you accept final payment for the claim. Until you get to that point, keep track of your checks and expenses to ensure you get paid for everything until your final payment is made.