How is an insurance claim payout determined?

In Arizona, insurance claims are evaluated and a payout is determined by the insurance company based on the facts of the claim and the insurance policy. The insurance adjuster will first review the policy to determine what coverages and limitations apply to the claim. They will then investigate the facts of the claim in order to determine if the insured is eligible for a payout and the extent of the coverage. The adjuster will also determine the cause and extent of the loss, evaluate the Damage Estimate, and determine the value of the claim. This includes evaluating the repair estimates for accuracy. The adjuster may also compare market price data for goods and services that the insured party claims to have purchased for the repair. The insurance company will then negotiate with the insured to come to an agreement on the value of the claim and any other matters related to the claim. The insurance company will then quote the insured the total payout for the claim which is the estimated amount to cover the loss and any other costs associated with the claim. Finally, the insurance company will review the claim one last time before approving the claim and making the payment. The insurance company may also request more information from the insured if needed in order to fully evaluate the claim.

Related FAQs

What should I do if I disagree with an insurance company's decision?
What is a coinsurance clause?
What is the difference between a claim and a lawsuit?
What is the difference between a policyholder and an insured?
What is a reasonable period of time for an insured to submit an insurance claim?
What is an assignment of rights?
What is a market value settlement?
What is a policy exclusion?
What is an insurance estimate?
How is an insurance claim dispute resolved?

How is an insurance claim payout determined?

Related FAQs

Related Blog Posts