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Mistakes That Can Delay Your Home Insurance Claim Settlement

clock and calendar insurance claim delay

Only a fraction of homeowners who pay for homeowner’s insurance actually experience and make a claim on catastrophic property loss. If you’re one of the unlucky few, you likely care about one thing regarding your insurance settlement: how fast will I get paid?

Once you file a claim, it’s reasonable to expect that the settlement process will move forward at a reasonable pace. But many property owners   experience a delayed insurance settlement, and most often it’s due to mistakes made in the actual filing and accompanying documentation. Here are the top mistakes that cause insurance claims delays.

Not Understanding Your Policy’s Provisions

If you don’t know the type of insurance you need, the mistakes you make in choosing coverage will come back to haunt you at claim time. You may find that you have the wrong type of coverage, the wrong policy limits, or the wrong assets covered. No coverage means no payment. Before filing, check to see what type of policy you have:

  • An actual cash value (ACV) formula is based on the cost of replacing items after deducting reasonable depreciation (based upon age and useful life).
  • Replacement cost value (RCV) is current replacement cost value of an insured item without the deduction of depreciation.

There is an enormous difference between the two, and if you were expecting a settlement offer based on an RCV estimation you only receive  ACV upfront,  you may want to review your policy to truly understand why that is.

Not Understanding the Claims Process

It takes time. From the date of loss to actual repair and reimbursement, the claims process is complicated and not easily navigated. You must deal with notifying your insurer of your claim, schedule meetings with the adjuster and 3rd party vendors, gather documentation, including photos, to submit to your carrier, and gather pricing information to start the estimation process. You also get to talk with and meet your insurance company’s adjuster, probably several times or more, and so on. It’s important to understand that insurance adjusters make mistakes just like everyone else, so insurance claims delays are inevitable.

Failure to Take Control of Your Claim

Maintaining control of your claim is absolutely essential if you want to ensure a successful settlement. To do so:

  • Stay organized and document everything.
  • Secure your property against further damage and do not throw anything away.
  • Obtain more then 1 quote from contractors  of your own choosing.
  • Take inventory, preferably before disaster strikes.
  • Ask for an advance to purchase necessities.
  • From adjuster to regional claims vice president, know the chain of command at your insurance company.

Remember, your insurance settlement negotiations never over until  you sign the release. Under a 1st party claim, you are not  required to sign a release. If you start to feel overwhelmed with the whole process, consider hiring a public adjuster to take control for you.

Bad Faith

As a policyholder, you may feel you are at the mercy of your insurance company, but you don’t need to be! Insurance companies have an obligation to not act in bad faith in the interpretation of their policies and in the investigation and payment of your damaged property. It is unlawful for an insurer to put its financial interests ahead of yours, to engage in unreasonable delay while processing your claim, or to underpay claims. Violating any of these insurance industry standards goes against the laws imposed upon insurance companies and exposes them to potentially significant damages.

Insurance claim mistakes can cost you thousands of dollars. To fully recover from your loss, do your homework and take the time to talk to someone who has the knowledge and resources to help get you the best possible settlement.

Miller Public Adjusters currently serves the states of
WisconsinFlorida - Illinois - Indiana - Michigan - Minnesota - Texas

Call us 24 hours a day at (800)958-4829 to schedule an appointment or
please fill out a Free Claim Review to see if we can help.

David Miller
David Miller
Thank you for visiting us. My name is David Miller, and I know what it means to have to fight with your insurance carrier just to get fair payment for your property damage claim. My family suffered a total loss house fire that took nearly two very stressful years to settle. Since, I combined my experience in construction with my expertise in contract language to create Miller Public Adjusters. We work exclusively for policyholders. Please feel free to comment, ask questions, and let us know how we can help.

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