Home insurance is supposed to provide financial relief to homeowners when disaster strikes. However, a new analysis by the Consumer Federation of America and Weiss Ratings reveals that home insurers can earn millions of dollars in investment income every day that claims are delayed.

According to the analysis, home insurers collectively generate approximately $8.8 million in additional investment income for every day that claim payments are delayed. This translates to roughly $61.6 million in investment income for the industry if claims are delayed for just one week.

Homeowners already dealing with a disaster may find it frustrating to wait for their insurance claims to be processed. The delay can make an already expensive situation even harder to recover from. ‘The financial pressure of waiting ultimately falls on homeowners,’ said Jennifer Taylor, a public adjuster and founder and CEO of Claim Ready.

Homeowners can take steps to prepare for an insurance claim before it is needed. Taylor recommends keeping a home inventory with photos, receipts, and appraisals for valuable items and letting the insurer know about major renovations. Having this paperwork ready can make it much easier to show what was owned and what was lost after a disaster strikes.

Even with preparation, the claims process can be lengthy. Taylor said that a smaller, straightforward homeowners claim can usually be resolved within a few weeks to a few months. However, with a large loss, the entire claim and recovery process can take 18 to 24 months.

Part of the reason for the lengthy process is that filing a claim is just the first step. A major loss can mean rounds of inspections, paperwork, repairs, and approvals before a homeowner sees the process through. ‘You have the initial inspections and documentation, but then you also have the rebuild itself,’ said Taylor.

The cost of waiting for a claim to be processed can be significant. Homeowners may have to dip into savings or turn to credit cards to pay for repairs, temporary housing, and other expenses. Delays can also make the original damage more expensive. A relatively minor roof leak, for example, can spread into walls, ceilings, and insulation if water continues getting in, potentially leading to mold and leaving homeowners on the hook for urgent repairs before their claim is resolved.

‘You can lose financial progress you’ve spent years building, and there is also the lost interest or growth on the savings you’ve had to use,’ said Taylor.

Homeowners who are experiencing delays in their claims process can take action. Taylor recommends starting with the insurance agent and, if necessary, escalating the claim to a manager at the insurance company. Homeowners who are still not getting answers can also file a complaint with their state’s department of insurance or insurance commissioner.

In conclusion, the claims process can be lengthy, and homeowners may have to wait for their insurance claims to be processed. However, by taking steps to prepare and staying involved in the process, homeowners can minimize the financial impact of waiting.