What is a supplemental claim?

A supplemental claim refers to a request made for additional payments or adjustments to a claim that has already been settled. This situation typically arises when new information becomes available or when unexpected costs related to the original claim emerge after the initial settlement. For instance, if a property owner made a claim due to damages and later discovers that further repairs are necessary or that costs were underestimated, they might submit a supplemental claim to cover those additional costs.

This concept is essential in claims processing because it acknowledges that circumstances can change or evolve following the initial assessment of damages. By allowing for supplemental claims, insurance policies can provide a more comprehensive coverage experience for policyholders, ensuring they receive the necessary financial support to restore their property to its pre-loss condition.

In contrast, the other options describe different scenarios that do not accurately capture the essence of a supplemental claim. Choices that refer to additional coverage not included in a policy, denied claims, or claims to a different insurer do not align with the typical function or definition of a supplemental claim.