Claim

Claim in Real Estate

A claim in the context of real estate refers to a formal request for financial compensation or reimbursement for damages or losses covered under an insurance policy or resulting from the negligence or actions of another party. This can include a claim made against an insurer for property damages or from a tenant against a landlord for failure to maintain a safe environment.

Examples

Insurance Claim:
- After the storm, the Johnsons filed a claim against their home insurance in order to repair damage to the roof.
Tort Claim:
- The plaintiffs claimed losses of $400,000 from the negligence of their landlord.

Frequently Asked Questions (FAQs)

Q1: What is the process for filing an insurance claim for property damage?

The property owner must notify their insurance company of the damage, provide necessary documentation (photos, repair estimates), and possibly meet with an adjuster sent by the insurance company.

Q2: Can a claim be rejected by an insurance company?

Yes, claims can be rejected if they do not meet the terms of the policy, lack sufficient evidence, or were not filed within the required timeframe.

Q3: What are common reasons for a tort claim in real estate?

Common reasons include injuries sustained on poorly maintained property, financial losses due to negligence, and property damage caused by a landlord’s failure to address known issues.

Q4: How long does it take to settle a claim?

The time can vary widely, from a few weeks for straightforward insurance claims to several months or years for complex legal claims.

Insurance Policy:
- A contract between an individual or entity and an insurance company, specifying the terms of coverage and compensation for certain types of loss.
Adjuster:
- A person who investigates insurance claims to determine the extent of the insuring company’s liability.
Tort:
- A civil wrong that causes a plaintiff to suffer loss or harm, resulting in legal liability for the person who commits the act.
Negligence:
- Failure to take proper care in doing something, which can lead to damage or injury and form the basis of a claim in real estate.
Compensation:
- The money awarded to someone in recognition of loss, suffering, or injury.

Online Resources

Investopedia - Insurance Claim: Investopedia
AllLaw - How to File a Property Damage Claim: AllLaw
NOLO - Making an Insurance Claim: NOLO

References

“Real Estate Law,” 8th Edition by Marianne M. Jennings.
“Understanding Property Law,” 4th Edition by John G. Sprankling.
Investopedia. “Insurance Claim.” Investopedia, https://www.investopedia.com/terms/i/insurance-claim.asp

Suggested Books for Further Studies

“Principles of Real Estate Practice” by Stephen Mettling, David Cusic, and Joan Sobeck.
“Real Estate Law (Real Estate Law (Seidel, George))” by Marianne Jennings.
“The Law of Real Estate Financing” by Brooke Wunnicke, Paul Barron, and Patrick Randolph.

Real Estate Basics: Claim Fundamentals Quiz

### What term describes a request for financial reimbursement covered by an insurance policy? - [ ] Lease agreement - [x] Claim - [ ] Mortgage - [ ] Deed > **Explanation:** A claim is the proper term for a request made for financial reimbursement covered by an insurance policy. ### What can a tort claim in real estate often result from? - [ ] Excellent maintenance of a property - [ ] Over-insuring a property - [x] Negligence by a landlord - [ ] Timely interventions > **Explanation:** A tort claim in real estate often results from negligence by a landlord, which can lead to property damage or personal injury. ### Who generally determines the extent of an insurance company's liability when a claim is filed? - [ ] Policyholder - [ ] The courts - [x] Adjuster - [ ] Bank > **Explanation:** An adjuster investigates insurance claims to determine the extent of the insuring company's liability. ### How can a property owner generally notify their insurer about a damage? - [ ] Ignoring the damage - [x] Filing a claim - [ ] Selling the property - [ ] Giving a public notice > **Explanation:** A property owner typically needs to notify their insurer by filing a claim to get covered for the damage. ### Can an insurance claim ever be rejected? - [x] Yes - [ ] No - [ ] Only for homeowners - [ ] Only for businesses > **Explanation:** Yes, an insurance claim can be rejected if it does not meet the terms of the policy, lacks sufficient evidence, or was not filed within the required timeframe. ### What is necessary to include when submitting an insurance claim? - [ ] Original deed of the house - [x] Evidence such as photos and repair estimates - [ ] Background check of the owner - [ ] Business registration papers > **Explanation:** Evidence such as photos and repair estimates are necessary to support an insurance claim for property damage. ### Who provides compensation for losses in a tort claim? - [x] The responsible party (e.g., landlord) - [ ] The insurance company - [ ] The government - [ ] The tenant > **Explanation:** In a tort claim, compensation for losses is typically provided by the responsible party, such as a negligent landlord. ### How long can it take to settle a straightforward insurance claim? - [ ] Several years - [ ] Never - [x] A few weeks - [ ] Over a year > **Explanation:** A straightforward insurance claim can often be settled in a few weeks. ### What term is used for a wrongdoing that causes harm or loss and involves legal liability? - [x] Tort - [ ] Mortgage - [ ] Lease - [ ] Deed > **Explanation:** A tort is a civil wrongdoing that causes harm or loss, leading to legal liability. ### What booklet would be recommended for someone interested in real estate financing? - [ ] Cooking Recipes - [ ] Tourist Attraction Guides - [x] "The Law of Real Estate Financing" - [ ] Novels > **Explanation:** "The Law of Real Estate Financing" would be a suitable book for someone looking into further details related to financings in real estate.