what is a claim in insurance

An insurance claim is a formal request made by a policyholder to their insurance company for coverage or compensation for a covered loss or policy event. When a covered incident, such as a car accident, a house fire, a hospital stay, or a natural disaster occurs, the policyholder submits a claim to their insurance company, asking for payment to help cover the expenses associated with the incident. The insurance company then validates the claim and, once approved, issues payment to the insured or an approved interested party on behalf of the insured. There are various types of insurance claims, including car insurance claims, homeowners insurance claims, renters insurance claims, health insurance claims, and life insurance claims, each with its own specific process for filing and handling the claim.