Payments Simplified: Why Digital Payments Are Shaking Up Property Insurance Claims

Marisa Sanfilippo
Marisa Sanfilippo
Sep 18, 2023

The paper check, a longstanding symbol of financial trust, has dominated the property owner/homeowner’s insurance settlement process for years. However, as technology advances, we have to question its efficiency.

Is it really necessary to print out and mail home insurance settlement checks? Not if you’re looking for a faster, more efficient way to get paid.

Stuck in the Past? The Issues With Paper Insurance Claims Checks

As noted by iink industry vet Ryan Holliday, 75% of contractors go out of business within the first five years due to cashflow. A lot of this has to do with the way home insurance settlement checks are processed.

Currently, property owners/homeowners file their claim after a loss. Then, they need to wait for their insurance company’s evaluation (hopefully for approval), wait for a check to arrive in the mail, and take the check to the bank (or mail it off) for mortgage endorsement before they actually can deposit the check. Some check deposits are held for an additional 3 to 10 business days for clearing. Because of this, contractors with limited capital reserves struggle to maintain their businesses and homeowners have to wait lengthy periods to have their homes repaired after they’ve been damaged due to a storm.

And that’s not the only issue with property claim check processing. Additional issues include:

Time delays. With a paper check, recipients have to wait for it to be issued, mailed, and endorsed by all parties before waiting for the deposit to clear.

In-person transaction hassles. Payment recipients typically need to visit a bank in person to have their check endorsed and deposited.

Potential for errors. Manually processing a paper check leaves a lot of room for errors. Multi-party checks are regularly misprinted with incorrect payees and lost in the mail. So, recipients have to wait for their insurance company to reprocess the payment and mail a new check.

Going Digital: Perks of the New Home Insurance Payments Processing Way

Implementing digital payments for property insurance claims solves most of the problems associated with using paper checks. Because they are endorsed digitally, payments can be received in as little as 24 to 48 hours and typically less than two weeks for multi-party claims checks (exclusions of course apply).

Some advantages of using a digital payment system with property/home insurance claims include:

Speed and efficiency. Digital payments enable instant transfers, dramatically cutting down on wait times and streamlining payment tracking. In addition, reduce Schedule D ALE coverage with faster repair completion, and close claims faster with digital payments on properties with a mortgage.

Improved customer satisfaction.
 Customers want faster payments—improve their satisfaction especially when they’re most susceptible to cancelling their policy.

Safety and security. Digital payments reduce fraud and abuse because they’re backed by bank-level encryption methods.

Convenience for all parties involved. Transactions can be managed remotely, eliminating the need for physical bank visits and offering flexibility to claimants, contractors, and insurers.

Reduced error potential. Automated processes decrease human errors. Discrepancies, when they do occur, can be resolved quickly thanks to digital audit trails.

3 Digital Technologies Enhancing the Claims Process

Digital technology has been enhancing insurance processes for years. There are several ways companies have used advanced technology to enhance the overall customer experience.

Custom Self-service Insurance Portals

Many insurance companies have self-service portals or apps their customers can use to manage their policies and file claims. Not only does this streamline the process of making policy changes, it also allows customers to track their claims 24/7.


Often integrated into self-service portals or websites, chatbots serve as the initial contact point.

They enable customers to report incidents, inquire about policy details, check claim statuses, and more without calling their insurance company.

Digital Insurance Settlement Payments

According to a study completed by, a global leader in advanced technology that serves the insurance sector, 87% of customers consider their claims experience when choosing to stay with an insurance company. Because of this, the use of digital settlement checks continues to grow.

Insurance Companies: Contact us to learn how you can integrate digital property insurance claim payments into your process by using iink.

Paper vs. Digital Homeowner’s Insurance Settlement Checks: the Bottom Line

While the paper check has its place in financial history, the present and future lie in embracing digital transformations. Embracing a solution like iink, ensures a more streamlined, efficient, and effective process in property claim insurance settlements, meeting the demands of our evolving digital world.

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