Understanding How Homeowners Insurance Disbursements Work

Property damage or the loss of a home will likely result in you filing a claim, which needs to be processed, and if it’s approved, a financial disbursement will typically be made by your insurance company. This disbursement can be used for restoration or repairs, based on your needs and all that has been listed in the claim. Continue reading to learn about other factors involved in disbursements, including various requirements and advantages.

Damaged Property

You can file a claim if your home is damaged due to weather conditions, theft, or other acceptable disasters. You may be awarded disbursement for furniture, clothing, sports equipment, electronics, or repair and replacement of your home’s structure.

Adjusters are often sent by your home insurance company to evaluate the damage, determine its extent and how much repairs or restoration will cost, and decide when the items or property were damaged.

If the claim is considered valid, the disbursement amount will be stated, and after it’s agreed upon, a final settlement for damaged property and personal belongings will be determined.

Standard Denials

The reasons behind the property damage will determine if your disbursement claim is approved. The most standard reasons for denials include floods and earthquakes. However, you can often purchase other insurance options that cover these causes of damage.

Termites could lead to damage, but this type of claim is often denied. Normal wear and tear could lead to a denial as well. Before selecting a policy, you should always learn as much about the insurance company’s standard denials and what options you have before agreeing to the plan.

Other Covered Items

Additional living expenses could lead to a disbursement claim. This will cover all or some of the costs associated with hotel stays. Car rentals and meals may also be covered.

A homeowners insurance policy might apply to liability, but this will vary by the provider and the cause. For example, your insurance company may approve disbursement claims for someone injured while on your property. That disbursement will typically cover the injured person’s medical expenses or damage to various items like vehicles and electronics.

Disbursement Types

The most common type of disbursement is a check made out to either you or your mortgage company. However, as times change, direct deposit has become one of the most preferred disbursement types due to its fast and secure way of receiving and accessing payments.

Some individuals prefer prepaid debit cards or an electronic funds transfer, but these options will vary from one insurance provider to another. Your banking institution will also need to review its policy, as some banks may allow direct deposits but not approve various digital options.

If you need additional information on any aspect of home insurance, reach out to the insurance experts at Altra Insurance Services. For reliable, affordable homeowners insurance, San Diego residents know they can trust Altra Insurance Services. We also provide renters, commercial, motorcycle, and auto insurance Chula Vista. Request a free quote by calling one of our friendly agents today.