Closed insurance claims

A closed insurance claim is a finalized request for coverage where the insurer has completed all investigations, made payments if owed, and issued a closure notice. Insurers close claims after resolving payment or denial, as seen with auto accidents or homeowners’ water damage cases, as reported by Your Insurance Info.

Claimants cannot reopen closed claims unless new evidence emerges, such as additional medical bills in personal injury settlements. Closed status means no further action will occur unless formally appealed by policyholders like those disputing denied fire loss payouts.

Insurance companies track closed claims to assess risk exposure and set premiums; for example, State Farm reported 1.7 million closed auto claims in 2022. Adjusters document reasons for closing each claim–such as settlement paid or lack of coverage–as required by state regulators like the California Department of Insurance.

Policyholders receive written notification when their claim closes, including details about any payout amounts or denials (e.g. $5,000 check for roof repairs). Closed claims affect future insurability because insurers review past closures during underwriting decisions on policies like renters’ or life insurance applications.