# Understanding First Notice of Loss (FNOL): Process, Requirements & Tips

> **Definition**
>
> The first notice of loss (FNOL) iniitates the process for insured individuals when filing a claim following the loss, theft, or damage of an insured asset.

The first notice of loss (FNOL) is the initial report you make to an insurance company when an insured asset is lost, stolen, or damaged. It's the step that officially triggers the claims process. To file an FNOL, you'll need details about the incident, such as the date, location, and description of the loss, along with any supporting documents like photos or police reports. Many insurers allow you to submit an FNOL online, through a mobile app, or by phone. Reporting promptly is key, as quick submission often leads to faster claim settlements.

*   The first notice of loss (FNOL) is the initial report to an insurer after an asset is lost, stolen, or damaged.
*   Submitting an FNOL typically requires details like your policy number, incident date, location, and a personal account of the loss.
*   FNOL marks the beginning of the claims process, potentially leading to a settlement if the loss is covered by your policy.
*   Technology advancements allow filing FNOL via mobile apps, making the process more accessible and efficient.
*   Insurers may request supplementary documentation, such as photos or videos, to support your FNOL submission.

## How a First Notice of Loss Works

The first notice of loss (FNOL) is a report that starts the process for you to receive a [claim](https://www.investopedia.com/terms/i/insurance_claim.asp) settlement. For example, if a thief steals your automobile, and you carry [comprehensive](https://www.investopedia.com/terms/c/comprehensive-insurance.asp) insurance, you can file a claim against your policy to help pay for a new ride. The first step in the claims process is to contact your insurance company or agent to report the theft. This first contact is the FNOL.

The FNOL process varies by insurer. With some providers, you can make the initial contact by calling your insurance agent or a claims call center. Many major insurers let you file the FNOL through their mobile apps. Others give you multiple options to file, which can include through a website app, email, a phone call, or postal mail.  

## Key Information Needed to File an FNOL

It’s important to file the FNOL as soon as possible, but you need to prepare first. Before contacting the insurance company, you first need to document your loss. For instance, if a fire damages your kitchen, take photos or videos of the damage. If you have photos or videos of the insured asset taken before the incident, make them available before submitting the FNOL.

If you damage your car in an accident, take photos and jot down notes about the location, how the incident occurred, and traffic and weather conditions. Also, if someone witnessed the accident, ask them for their contact information. If a police officer responds to the accident, ask them how you can get a copy of their report.

After documenting all your losses, you can contact your insurer. An FNOL typically asks for your policy number, the date and time of the incident, the location, any police report number, and your personal account of the loss.

In the case of auto damage claims, you also must provide information about the other party’s insurance coverage during the FNOL. The claims adjuster may also rely on the accounts of the other driver and witnesses when determining how to settle the claim.

If you initiate the FNOL over the phone, the agent or claim representative will review your policy to see if it covers your losses. They might also ask you a few questions about the extent of the loss and how the loss occurred.  

> **Tip**
>
> When making an FNOL by phone, ask the agent or representative about the next steps in the process and whether they need additional documentation or information from you or other parties. Take notes during the call.

## What to Expect After Filing an FNOL

After the FNOL, the insurance company might send a [claims adjuster](https://www.investopedia.com/terms/c/claims-adjuster.asp) to inspect your losses. It’s [](https://www.investopedia.com/terms/c/claims-adjuster.asp)the adjuster’s job to determine the extent of losses and how much you will receive in a [settlement](https://www.investopedia.com/terms/l/loss-settlement-amount.asp). Be available during the adjuster's visit, especially if you witnessed the losses. During the visit, the adjuster might ask you additional questions and take pictures of the losses.

Sometimes, an insurance agent, adjuster, or claims representative might ask you to submit additional documentation following the FNOL. Comply as soon as possible to ensure a smooth claim process. After receiving all necessary information, the provider will either pay a settlement or deny the claim.

If the insurer denies your claim, it must inform you why it made the decision. If you believe the company hasn’t treated you fairly, you can file a complaint with your state’s department of insurance.  

### Note

State insurance codes set time limits that insurers must meet when dealing with claims. In Texas, after you file the FNOL, insurers have 15 days to gather extra information and assess your claim.

### Understanding Settlement Offers After an FNOL

If you receive a settlement, it’s important to understand how the insurer determines the dollar amount. Many auto and home insurance policies pay actual cash value, which is the [depreciated](https://www.investopedia.com/terms/d/depreciation.asp) value of the asset. For instance, if you total a five-year-old vehicle and carry a [collision](https://www.investopedia.com/terms/c/collision-insurance.asp) insurance policy, the insurer will determine the settlement amount based on its current market value. Some insurance companies offer [replacement cost](https://www.investopedia.com/terms/r/replacementcost.asp) value coverage, usually as an endorsement or [rider](https://www.investopedia.com/terms/r/rider.asp) to a standard policy.

In certain cases, a carrier might make more than one settlement payment, especially when paying [homeowners](https://www.investopedia.com/terms/h/homeowners-insurance.asp) claims. For instance, if your home sustains storm damage, the insurer might make an initial payment to help get repairs started, a second payment for personal property losses, and a third payment to reimburse you for final construction costs.  

## How Technology Enhances the FNOL Process

Over the years, technology has changed the way you report insurance losses and how insurers manage claims updates. Many large insurance companies enable you to make the FNOL using an online claim submission application or a mobile app. Typically, providers offer mobile apps for Android and Apple devices.

The functionality of mobile apps varies by insurer, but many enable you to submit a claim using a smartphone or tablet. With some apps, you can also submit supporting documents and photos, contact your agent, chat with a claims adjuster, and track the status of your claim.

Some major carriers give you the option to choose a digital claim payment, rather than a traditional paper check. For instance, your insurer might make a settlement payment via direct deposit into your checking account or through your bank debit card. Typically, opting for an electronic settlement will ensure a faster payment.  

## Important Considerations When Filing an FNOL

When a loss occurs, contact your insurer as soon as possible, if you intend to file a claim. The quicker you report a loss, the faster you’ll receive a settlement payment. Some insurance companies recommend or require a FNOL within a certain period. For example, a provider might recommend submitting a [homeowners](https://www.investopedia.com/terms/i/insurance.asp) claim within six months of the incident that caused the loss. Check the fine print of your [insurance policies](https://www.investopedia.com/articles/pf/06/insurancecontracts.asp) to determine whether your insurer sets a time limit on filing claims.

Be aware that your claims history is one factor insurance companies use when setting rates. Filing a single claim might not cause a rate increase. For instance, you might not face a rate increase following a storm damage claim. However, if you file an auto collision insurance claim for an accident deemed your fault, you’ll likely see a rate increase.

Keep this in mind before making a FNOL. If you can afford to pay for losses out of pocket, it could save you money overall.

## What Is an Example of a First Notice of Loss?

Let’s say you crash your car into a tree. For your collision insurance to pay for the damage, you’ll need to first file a claim. Insurance companies offer several ways to file a claim, which can vary by carrier. Regardless of how you make the initial contact about the accident and losses, this first contact constitutes the FNOL. It’s the first step in filing a claim. If the policy covers the loss, the FNOL will start the process for receiving an insurance settlement payment.

## What Is the Difference Between Proof of Loss and Loss Notice?

The FNOL (loss notice) is your first step in the claims process. When a disaster occurs, you must report losses to an insurance agent or company to start the claims process. Proof of loss is a later step, in which you must provide details of the scope of the loss. Along with an explanation of losses, the adjuster might require you to submit supporting materials such as photos or video of the damage.

## Can an Insurance Company Reject a Proof of Loss?

If you provide false information in the proof of loss, the insurer might reject it or even deny the claim. Typically, the insurance company requires you to submit the form within a specified period, such as 30 or 60 days. In some cases, filing the form later than the due date may result in a claim denial. However, some state insurance codes prohibit a provider from denying a claim strictly based on a policyholder filing a proof of loss form after its due date.

## The Bottom Line

Filing a first notice of loss (FONL) quickly is crucial for starting the claims process and getting reimbursed as soon as possible. To submit an FNOL, you'll typically need to document the incident, provide your policy details, and include supporting evidence like photos or police reports.

Many insurers now make the process easier with online portals and mobile apps, though you may still need to cooperate with claims adjusters for inspections or follow-up questions. Understanding how your settlement will be calculated, such as actual cash value versus replacement cost, can help you prepare for the outcome, which might include multiple payments or, in some cases, a denial.

Responding promptly to any requests for additional documents can speed up the process, but it's also worth weighing whether to file small claims, as frequent claims can affect future insurance rates.  

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