What Happens After You Submit an Insurance Claim in Maryland

This FAQ explains, in plain language, what typically happens after you file an insurance claim in Maryland. It describes the insurer’s usual steps, your rights, and practical next steps you can take to protect your claim. This is general information only and not legal advice.

Detailed answer: Step-by-step of the post-claim process under Maryland law

1. Claim intake and acknowledgement

Once you submit a claim (online, by phone, or in writing), the insurer typically creates a claim file and should acknowledge receipt. Acknowledgement may be verbal at first and often followed by written confirmation. The insurer assigns a claims representative or adjuster who will be your primary contact.

2. Investigation

The insurer will investigate the loss to determine whether the claim is covered by your policy. That investigation commonly includes:

• Reviewing your policy and the circumstances of the loss;
• Contacting you for more information and documentation (photos, receipts, police reports, proof of ownership, estimates);
• Sending an adjuster to inspect damage in person for property or auto claims;
• Interviewing witnesses or consulting experts (e.g., engineers, medical reviewers, or contractors) where needed.

Under Maryland law, insurers must handle claims in good faith and avoid unfair settlement practices. If you believe an insurer acted unfairly during investigation or settlement, Maryland’s unfair claim settlement rules may apply—see the Maryland Insurance Article cited below for more detail.

3. Coverage decision: accept, deny, or pay part

After investigating, the insurer will make a coverage decision. Typical outcomes:

• Full payment: the insurer accepts coverage and pays the covered amount (minus any deductible).
• Partial payment: the insurer accepts some exposure but denies or limits payment for other parts of the claim.
• Denial: the insurer denies coverage because the policy does not cover the loss or because of other policy terms (e.g., exclusions, late notice, lack of proof).

If the insurer denies or partially denies your claim, it should explain the reasons in writing. Review the explanation carefully and compare it to your policy language.

4. Payment, repair, or other resolution

If the carrier accepts the claim, it will arrange payment. Payment options include a direct payment to you, payment to a repair shop, or issuance of checks to you and any lender named on a mortgage (for property losses). For auto claims, the insurer may pay for repairs directly or reimburse you after repairs are completed.

5. Subrogation and salvage

If a third party caused your loss and the insurer pays your claim, the insurer may pursue subrogation (seeking reimbursement from the responsible party). For property claims, the insurer sometimes takes possession of salvage (damaged items or vehicle) after paying the claim.

6. Disputes and appeals

If you disagree with the insurer’s decision or the amount paid, you have options:

• Ask the adjuster for a detailed explanation and submit additional proof.
• Request a reinspection or independent estimate.
• Use any appraisal or dispute resolution process provided in your policy (many property policies include an appraisal clause to resolve value disputes).
• File a complaint with the Maryland Insurance Administration (MIA). The MIA helps consumers resolve complaints and enforces insurance laws: insurance.maryland.gov – Consumer Complaints.
• If needed, consult a lawyer experienced in insurance claims to discuss legal options, including lawsuits for breach of contract or improper claims handling.

7. Potential remedies if an insurer acts improperly

Maryland law prohibits unfair settlement practices by insurers. If an insurer unreasonably delays, denies without a reasonable basis, or misrepresents policy terms, you may have administrative or legal remedies. For statutory language on unfair claim settlement practices, see the Maryland Insurance Article: Md. Ins. Code Ann. § 27-303.

What you should do right after you file the claim

• Keep copies of everything you submit (photos, estimates, receipts, emails). Create a single folder—digital or physical—so nothing gets lost.
• Write down names, dates, and what each person told you during calls with the insurer.
• Provide requested documents promptly. Don’t give recorded statements unless you understand why the insurer needs them; you may ask to consult a lawyer first.
• Get at least two repair or replacement estimates for property damage if possible.
• Review your policy’s deadline rules and coverage limits so you know deadlines (notice requirements, suit limitations) that may affect your rights.

Helpful hints

• Save all claim-related communication and label it with date and the person you spoke to.
• Use certified mail for important documents if you need proof of delivery.
• If the insurer requests a recorded statement, ask why they need it and whether you can provide a written statement instead. Consider consulting a lawyer before providing recorded statements for serious losses.
• If repairs are urgent, get temporary repairs done to prevent further damage; most policies cover reasonable mitigation expenses—keep receipts.
• Check whether your policy includes alternative dispute resolution (appraisal, mediation) and how to start that process.
• File a complaint with the Maryland Insurance Administration if you cannot get a satisfactory response: MIA Consumer Complaints.

When to consider talking with an attorney

Consider consulting a lawyer when:

• The insurer denies a claim you believe is clearly covered;
• The insurer delays payment for an extended period without a reasonable explanation;
• You have a large loss and complex coverage questions (e.g., business interruption, total loss);
• You suspect bad-faith conduct by the insurer or serious valuation disputes;
• Statute-of-limitations or policy deadlines are approaching and you need legal advice quickly.

Where to find Maryland consumer help and statutory rules

• Maryland Insurance Administration – Consumer Complaint and Help Center: https://insurance.maryland.gov/Consumer/Pages/complaints.aspx.
• Relevant Maryland statute on unfair claim settlement practices: Md. Ins. Code Ann. § 27-303. (This statute addresses certain unfair or deceptive settlement practices and enforcement by state authorities.)

Disclaimer: This article provides general information about Maryland insurance claims processes and is not legal advice. It does not create an attorney-client relationship. For advice about a specific claim, speak with a licensed Maryland attorney or contact the Maryland Insurance Administration.