The insurance company will assign an adjuster to investigate. They will review your policy, assess the evidence, interview involved parties, and determine coverage and liability based on the facts and your policy terms. They may estimate repair costs or, for injury claims, evaluate medical reports. The insurer will then make a decision to accept or deny the claim, or to negotiate a settlement. This process can take from weeks to several months depending on complexity.

The adjuster is an employee or contractor for the insurance company. Their primary job is to investigate your claim, assess the reported damages and liability, and ultimately settle the claim for the lowest amount that is legally reasonable. They are not your advocate or advisor. While many are professional, remember they work for the insurer’s financial interests. Your cooperation is necessary, but you should be cautious and prepared in all communications.

Replacement cost is the amount needed to repair or replace damaged property with new items of similar kind and quality, without deducting for depreciation. Actual cash value is the replacement cost minus depreciation for the item’s age and wear. Most standard policies pay actual cash value initially, but you may receive the full replacement cost after you actually replace the item, if you have that specific coverage endorsement.