Detailed answer

1. Immediate insurer response and claim number

Once you file a claim (online, by phone, or by form), most insurers will send an acknowledgment and assign a claim number. This lets you track the claim and identify the adjuster handling your file. Keep that claim number, the adjuster’s name, and contact information in your records.

2. Investigation

The insurer will investigate the reported loss. That investigation typically includes:

• Reviewing your policy to confirm whether the loss is covered.
• Requesting proof: photos, police/fire reports, receipts, or estimates.
• Sending an adjuster to inspect damage (in property and auto claims) or asking for documents for liability claims.

Cooperate promptly but avoid admitting fault or making statements that could be construed as accepting blame. Provide honest, accurate information and copies (not originals) of supporting documents.

3. Coverage decision

After the investigation, the insurer will make a coverage decision:

• Accept the claim and make a payment (full or partial).
• Request more information if the file is incomplete.
• Partially deny (accept some items but not others).
• Deny the claim entirely if it falls outside policy coverage or for another valid reason (e.g., late notice, excluded peril, policy lapse).

If the insurer denies or partially denies, it should explain the reason(s) in writing and identify the policy provisions supporting its decision.

4. Estimate, appraisal, and repairs

If the claim is accepted, the insurer will calculate the loss amount using its own estimate or an independent adjuster’s report. Policies often specify whether the company pays actual cash value (ACV) or replacement cost value (RCV), and whether you must complete repairs before receiving full RCV payments. If you disagree with the dollar amount, many policies include an appraisal or dispute process.

5. Payment and settlement

Payment may be made directly to you, to a vendor (repair shop), or to a mortgagee/lienholder if required by your policy. Review any release or settlement document carefully before signing. Signing a full release usually prevents you from reopening the claim later for that loss.

6. If the insurer delays, denies, or underpays

Keep records of all communications (dates, times, names, and what was said). If the insurer unreasonably delays or rejects a valid claim, you have several options:

• Submit additional documentation or ask for a supervisor review.
• Use your policy’s internal appeal or appraisal procedures (if available).
• File a complaint with the Alabama Department of Insurance: https://www.aldoi.gov/consumer/filing-a-complaint/.
• Consult a lawyer about a bad-faith claim or lawsuit if the insurer acted unreasonably.

7. Appraisal, arbitration, and litigation

Many policies contain appraisal clauses to resolve disputes about the amount of loss. Appraisal is usually faster and less costly than litigation, but it only addresses value — not coverage denials. If coverage is denied and the parties cannot agree, you may need to pursue the matter in court. Before filing suit, check your policy for notice requirements and read any clauses that require appraisal or alternative dispute resolution.

8. Your timeline and deadlines

Insurance policies and Alabama law set deadlines that affect your rights. Your policy may require prompt notice of loss and cooperation during the investigation. If you are considering a lawsuit, statute-of-limitations rules apply to insurance claims. Consult the policy and an Alabama attorney promptly so you do not miss important deadlines. You can also get guidance from the Alabama Department of Insurance: https://www.aldoi.gov/.

9. When to contact an attorney

Consider talking to an Alabama-licensed attorney if:

• The insurer denies coverage and you believe the policy covers the loss.
• The insurer refuses to pay a reasonable amount or unreasonably delays payment.
• There is a complex liability dispute, serious injury, or large property loss.
• You receive a letter from the insurer that is confusing or threatens to close your claim if you do not act.

An attorney can review your policy, explain your rights under Alabama law, and advise whether to pursue appraisal, mediation, or litigation.

10. Legal protections under Alabama law

Alabama regulates insurers and investigates consumer complaints. If you believe an insurer engaged in unfair claim practices, you may file a complaint with the Alabama Department of Insurance. See consumer resources here: https://www.aldoi.gov/consumer/filing-a-complaint/.

For the controlling statutes and rules, consult Alabama insurance laws (Title 27 of the Alabama Code) and the Department’s resources available through the Alabama Legislature and the Alabama Department of Insurance main pages: https://www.legislature.state.al.us/ and https://www.aldoi.gov/.

Helpful hints

• Document everything: take photos, keep receipts, and save emails and letters.
• Get a claim number and note the adjuster’s name and contact details on day one.
• Read your policy’s declarations, exclusions, and conditions so you know what is covered and what steps you must take.
• Provide the information the insurer reasonably requests, but do not sign a full release or a final settlement until you are satisfied with the payment.
• Obtain independent repair estimates to compare with the insurer’s estimate.
• When in doubt, ask the insurer for a written explanation of any denial or partial payment and request citations to the policy language relied on.
• File a complaint with the Alabama Department of Insurance if you suspect unfair treatment: https://www.aldoi.gov/consumer/filing-a-complaint/.
• If your claim involves serious injury, large losses, or a complex liability issue, consult an attorney early.