How to Handle Delays in Insurance Claims Processing

When disaster strikes—whether it’s a fire, storm, or water damage—the last thing you want is a delay in receiving your insurance payout. Unfortunately, delays in insurance claims processing are not uncommon. They can result from a variety of factors, including paperwork issues, disputes over estimates, or overwhelmed adjusters. While some delays are inevitable, there are steps you can take to keep the process moving and ensure you get your settlement as quickly as possible.

Here’s a guide on how to handle delays in insurance claims processing:

1. Understand Why Delays Happen

The first step in managing delays is understanding why they occur. Common reasons include:

• Incomplete or inaccurate documentation: Missing or incorrect paperwork can slow things down, as your insurance company may need to request additional information.
• Complex claims: Large or complicated claims, such as those involving commercial properties or extensive damage, may require more time to investigate and process.
• High demand: After a natural disaster, insurance companies often face a surge in claims, which can lead to longer processing times.
• Disputes over estimates: Disagreements between the insurance company and the policyholder about the cost of repairs or replacement can cause delays.

Knowing what’s causing the delay will help you take the right actions to expedite the process.

2. Be Proactive with Documentation

One of the most effective ways to avoid delays is to be thorough with your documentation from the start. When filing your claim:

• Take detailed photos or videos of the damage.
• Create a written inventory of any damaged items.
• Keep receipts for any repairs or temporary living expenses (if applicable).
• Provide clear and accurate descriptions of the loss.
• If you’ve received repair estimates, include them with your claim.

Having complete documentation reduces the likelihood of the insurance company needing additional information, which can cut down on processing time.

3. Stay in Regular Communication with Your Insurance Company

The saying “the squeaky wheel gets the grease” applies to insurance claims as well. Stay in regular contact with your insurance company, checking in on the status of your claim and asking if they need anything further from you. Sometimes, simply showing that you are engaged and following up regularly can keep your claim at the top of the pile.

When speaking to your adjuster or claims representative, always take notes, including the names of people you speak with, the date of the conversation, and any updates or promises they make.

4. Consider Hiring a Public Adjuster

If the delays persist and you’re not getting the responses or cooperation you need, it may be time to bring in a public adjuster. A public adjuster works on your behalf, not the insurance company’s, to assess the damage, handle paperwork, and negotiate with the insurer. They have experience in navigating claims processes and can help expedite things if the insurer is dragging their feet or disputing the extent of the damage.

A public adjuster can be especially useful for large or complex claims that involve substantial payouts.

5. Know Your Policy’s Timeframes

Every insurance policy has specific timeframes for processing claims. Familiarize yourself with these deadlines and understand your rights. For example, most states require insurers to acknowledge receipt of a claim within a certain period, such as 10-30 days, and to pay valid claims within a specific window once the claim is approved. If the insurer exceeds these timeframes without justification, you may have grounds to file a complaint or take further action.

6. File a Complaint if Necessary

If your insurance company is unresponsive or unjustifiably delaying your claim, you may need to escalate the situation. Start by filing a formal complaint with your insurance company. This can often get their attention and prompt action.

If that doesn’t resolve the issue, you can file a complaint with your state’s Department of Insurance. Many states have regulations that protect policyholders from bad faith practices, and insurers can face penalties for unnecessarily delaying claims.

7. Explore Legal Options

In extreme cases, where the insurance company is acting in bad faith—such as delaying your claim without valid reasons, underpaying, or outright denying a legitimate claim—you may need to consult with an attorney who specializes in insurance disputes. An attorney can advise you on whether you have a case and what legal steps you can take to get the compensation you deserve.

8. Prepare for Temporary Solutions

While waiting for your insurance claim to be processed, you may need to take temporary steps to minimize further damage or to continue your day-to-day life. If your home is uninhabitable, look into Additional Living Expenses (ALE) coverage, which can help pay for temporary housing while your claim is resolved. If possible, make temporary repairs to prevent additional damage, but keep receipts and document everything to ensure you are reimbursed later.

Final Thoughts

Delays in insurance claims processing can be frustrating, especially when you’re counting on that money to rebuild your home or business. However, by staying organized, maintaining open communication, and taking proactive steps, you can reduce the chances of unnecessary delays. If you encounter resistance or a lack of responsiveness from your insurer, don’t hesitate to bring in professionals like public adjusters or legal experts to ensure you get the settlement you’re entitled to.

If you’re facing an extended delay in your insurance claim and need help navigating the process, don’t hesitate to reach out to a Property Claim Advocates public adjuster.  We can advocate for your interests.