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Now that you understand how insurance can help protect your assets and how to file a claim, what are the steps involved if something does go wrong? How do these insurance claims work? Each type of insurance will have a slightly different process but there are several similarities across the board. In a nutshell, you’re filing the claim to get compensation to cover the losses involved. It’s important to note here that if you haven’t met your deductible throughout the year, you will be required to pay that first. It’s crucial to know what your deductible is as you want to make sure that damages are over that number.