Claim Settlement
Definition:
The final resolution of an insurance claim, including payment amount and terms.
Explanation:
A settlement may cover repair costs, replacement, or cash value depending on policy terms. Settlements can be negotiated or disputed if the homeowner believes the offer is too low.
Example:
If your insurer offers $20,000 to repair fire damage and you agree, that amount becomes your claim settlement.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.