How Do Insurance Companies Pay Out Claims in Colorado?

The process of receiving your payout after a claim in Colorado is going to vary from carrier to carrier and coverage type for some of the nuances but is more or less the same when assessing the big picture.

You’re going to typically have an insurance adjuster confirm the loss, and the circumstances surrounding the loss, and receive reimbursement to restore your loss if the claim is successful. If it’s not, then you will not receive compensation and other avenues may need to be explored.

A typical claim means having an initial check for reimbursement after an insurance adjuster goes out and assesses the damage. However, for claims involving things like homeowners policies, it’s important to keep in mind, that you may receive multiple checks.

One check is typically for personal belongings, and one for additional living expenses (ALE) if your home is uninhabitable. If you have a mortgage, your lender may have control over the payment, and they might require endorsement of the claims payment check.

Your insurance company could also pay your contractor directly, so be cautious when signing any payment direction forms. You’ll want to confirm that your ALE check is made out to you and not your lender.

When it comes to your personal belongings, the initial check is typically based on the cash value, but you can receive a replacement value if you actually replace the items, depending on the terms of your policy. In the case of a total loss, insurers typically pay the policy limits for both the home and its contents.

Furthermore, it’s important to not close out your claim until everything is checked out. This is a common consideration for those filing with another party’s auto insurance company after suffering a loss. Particularly, when personal injuries are involved.

Medical situations are expensive, complex, and can take time. Never close your claim until you have been medically cleared by a licensed healthcare professional and under the advisement of your insurance agent helping you along the way.

Finally, if you are not successful with submitting a claim, you’ll have the option to appeal it. In this case, a third party will step in to review the circumstances. In the event that it is found that you may need a second look, you can undergo the process again.

Legal action may also become necessary, however, this should only become a final recourse. Taking a legal route is an expensive, stressful endeavor that can harm your relationship with your carrier, cost more than its worth, and leave you with no guarantee of success.

 

How Do Car Insurance Companies Pay Out Claims in Colorado?

How car insurance companies pay out claims in Colorado will depend on the circumstances of the accident and the coverage involved. However, the process to determine whether or not your claim is viable remains fairly similar to other forms of insurance.

Once you’ve submitted a claim to your auto insurance company and, when applicable, notified the at-fault driver’s insurer, an investigation into your accident claim will commence.

This process typically entails gathering witness statements, accident photographs, comprehensive incident descriptions, and official medical evaluations. A word of advice, lean on your insurance agent. Even if you have the right Colorado auto insurance in place, they are a tremendous resource for communicating and handling such matters.

After a thorough review of all the gathered information and evidence, the insurance company will either extend a settlement offer or reject your claim. In either scenario, you have the option to dispute the insurer’s offer through an appeal. Should you find the settlement inadequate or face a claim denial, further action may be required on your part.

Determining fault is a critical part of the process. The driver at fault is going to be responsible for restoring the losses involved. Going by Colorado’s modified comparative negligence law, you’ll need to be under 50% in order to be compensated for your loss.

Note that if you have coverages that require a deductible, you’ll need to pay this portion before receiving reimbursement for your loss. Deductibles are agreed upon at the time of enrollment and if they are not fulfilled, you won’t receive reimbursement when filing a claim.

 

How Do Home Insurance Companies Pay Out Claims in Colorado?

Colorado homeowners insurance covers unexpected property losses or damage along with some losses regarding liability. After your home insurance company assesses the damage through an insurance adjuster, they provide a settlement in either replacement cost or actual cash value.

Replacement cost helps rebuild or repair using similar materials, while actual cash value considers your home’s value based on age, condition, or market value while accounting for depreciation.

Insurance settlements are often issued jointly to you and your mortgage servicer to protect the lender’s interest. The servicer releases funds in stages for repairs, and as mentioned above, you must continue making mortgage payments during the claim process.

If you have a home insurance policy that provides reimbursement through replacement costs, you’re going to have a higher premium as a result. You’re also going to have to cover your deductible before receiving compensation.

 

How Do Flood Insurance Companies Pay Out Claims in Colorado?

Getting a payout for flood insurance in Colorado is going to be a similar process as a home insurance policy. You’re going to submit your claim, an insurance adjuster will assess the losses, and/or your lender will receive what will likely be multiple checks as needed to restore your property, and so on.

The biggest thing here is that there is going to be a specific focus on determining what was affected by flood damage and what wasn’t. For example:

• If you suffer a loss that involves both wind and flood damage, you’re going to receive reimbursement from two different policies. Just as your home insurance policy won’t cover flood damage, don’t expect your flood policy to cover wind damage.
• This can complicate matters in which multiple weather conditions are involved. Be prepared to show documentation specific to flooding when filing a claim to help with this process.

 

What To Do if an Insurance Company Is Stalling in Colorado?

There are some states that have requirements for insurance companies to pay out a claim, but Colorado isn’t one of them. Therefore, it can take a while in some cases to receive reimbursement after a loss.

But that doesn’t mean carriers can do whatever they want, nor does it mean you are completely out of options. Carriers are still expected to be prompt in communication and in handling your claim. When this fails, you can hire a bad-faith insurance attorney licensed to practice law in Colorado.

You should always do what you can before taking legal recourse to work with the carrier. Not only is this simply easier but it can also help you with your case if necessary in the long run.

It’s also important to remember that you have resources available to you. You can file a complaint with Colorado’s DORA Division of Insurance.

Avoiding these issues isn’t always an option but you can mitigate our risk of dealing with shotty carriers. A great step in this effort is to only receive coverage from top-rated insurance carriers known for acting in good faith and capable of handling their financial responsibilities for their clients.

 

Pros and Cons of Suing for Your Colorado Insurance Claim Payment

Situations may arise in which you’ll need to take legal action to settle a dispute with your insurance carrier. While this is always less than ideal, you do have options, but be aware of the pros and cons that can come with taking such actions before doing so. If you’ve exhausted all other options and are pursuing legal action, here are some keys to remember beforehand:

Pros	Cons
You can stand up for yourself and potentially receive compensation.	There isn’t a sure path for anyone. You’ll need to prove your case and there is never a sure thing when taking legal action.
You have the right to defend yourself if you are wrong. Exercising it is important when situations call for it.	Your relationship with your carrier is likely going to be strained regardless of the outcome.
There are laws and precedents to help your case and protect you when taking legal action the right way.	Legal issues are time-consuming and complicated. Many carriers also have legal teams that are experts and matching them can be expensive.

Even if you are able to reclaim what is rightfully yours, it’s an uncomfortable, lengthy, and expensive process. Avoiding legal action is always preferable. The best way to avoid such issues is to enroll with carriers that are reputable and top-rated with a reputation of high customer service.

 

How To Avoid a Frustrating Insurance Claim Payout Process in Colorado

It doesn’t matter if you alone need to submit a claim or if your entire town is facing losses, the claim payout process in Colorado can be exhausting. Nevertheless, there are steps you can take to alleviate some of the stress and move forward with less resistance.

 

Be Sure To Read Your Policy and Take Detailed Documentation of Your Loss

One of the easiest ways to ensure your experience filing a claim goes well is to know what you’re covered for and to communicate it effectively. The more evidence you have, the better as you’ll need to prove your loss and you’re also going to need to be sure that your claim involves a covered loss.

The claim payout process involves a lot of fact-checking to ensure that you can make the claim. An insurance adjuster will be sent out to verify the loss and to make sure it’s in accordance with your coverage. Having the right documentation can speed the process up and ensure you receive the compensation you deserve.

When gathering evidence, it’s important to do so fully and in an organized fashion. For example, if your home suffers a loss in multiple areas, you’ll want to take a video to prove the damage but you should take a video of each room separately to keep your information organized.

 

Understand the Situation You’re Facing and Be Realistic

It’s frustrating to suffer a loss and the quicker you receive communication and reimbursement, the sooner you can move forward. But it’s still important to be reasonable about the process to temper frustrations and stress.

For example, if your home suffered a smaller loss, you can reasonably expect to receive a faster payout than if your home is one of many affected in your area by say a tornado, flood, or wildfire.

 

Enroll With a Top-Rated Insurance Carrier

You have choices when it comes to your coverage and while price is important, don’t forget to sign up with a reputable carrier. When you need them most, working with a top-rated company is going to make all the difference in the level of service you experience as well as the carrier’s ability to actually pay your claim.

 

Looking for a Smoother Claims Payout? Compare Top-Rated Carriers in Colorado

Sometimes it’s helpful to switch insurance companies because of increasing premiums or a lack of coverage options. Then there are changes that need to be made because of past experiences. Whatever your reason, we’re here to help.

By partnering with multiple top-rated carriers offering home, auto, umbrella, flood, and many other Colorado insurance coverage options, Freedom Insurance Group has the ability to compare your needs across a variety of brands you can trust.

Unlike singular brands, our partnerships afford us many more options. This means better opportunities and savings for you. If you’re unhappy with the service you’re receiving and wish to have a smoother process in the event of a claim in the future, you’ll have options.

Furthermore, our top-rated carriers aren’t just known for their positive reputations throughout the Centennial State but you’re also receiving an extra layer of communication when you enroll with us. Not only is the carrier there for you but our team will help make your claim as smooth as possible to get you back on your feet.

Contact us at the number above to see how we help people across Colorado save money with coverage they can trust.