Supplemental Claim
Definition:
A claim filed for additional costs after an initial claim has already been settled or paid.
Explanation:
Supplemental claims are common when hidden damage is discovered during repairs or when repair costs exceed the original estimate. They allow policyholders to request more money beyond the first payment.
Example:
If your insurer paid $10,000 for water damage repairs but contractors later find mold behind the walls, you may file a supplemental claim for the added costs.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.