What is a "claim"?

What is a "claim"?

Elliot Matloff (President and Broker, The Matloff Company) gives expert video advice on: What is an "underwriter"?; What is "coverage"? and more...

A claim is the ultimate purpose of having insurance. One day, something happens that is not very pleasant. You have a claim. That's when you ask the insurance company to divvy up for all those insurance premiums you've paid over the years, because now you have a serious problem. If you have had a flood in your house, or the house burned down, you expect that insurance company to come back and take care of your claim. So a claim is basically asking the insurance company to fulfill their promise and pay out the benefits that they promise you on the policy.