When you’re rebuilding your home after major property damage, insurance claim problems are often unavoidable. Getting your family to safety can be traumatic enough. Then you must report your claim, sort through your damaged personal property and find a contractor to make repairs. You must also deal with an insurance company property adjuster who might empathize with you but doesn’t have the same emotional and financial investment.
Your insurance adjuster isn't likely to cheat you, but it is an adjuster's job to control claim costs and to control you. The process lead to include insurance claim problems when you can’t agree on the basics.
1- Failure to protect your property
You know instinctively to move your family to safety, but your homeowners policy also requires you to protect your property. That can mean having a contractor tarp a hole in your roof to keep out rain or separating salvageable property to prevent mildew from ruining everything. Insurance companies reimburse the costs, so they accept no excuses. They might refuse to pay for damages you could have prevented.
2- Pitching property before the adjuster sees it
It’s a good idea to hop right into the cleanup process but never throw away damaged or destroyed property before the insurance adjuster checks it out. It causes insurance claim problems because it looks like you’re trying to hide something. It also makes your loss difficult to prove.
3- Dissatisfied with the insurance company’s recommended contractors
It might cause insurance claim problems when you don't like the contractors your insurance company recommends, but you don't have to use them. An insurance company can't steer you to a contractor you don't want to use. They must try to work things out, but there is a possibility they won't.
4- Repair vs replacement
Your insurance company has the option to repair or replace your damaged property. Forced repairs often lead to insurance claim problems for several reasons:
- Repaired sections might not match.
- You might not want property after it's repaired.
- Repairs might not restore the quality.
5- Failure to produce proper documentation
If you make a claim for damaged personal property and you don’t have receipts, photos or other documentation, it’s difficult to prove your claim. Original receipts aren't always necessary, but insurance claim problems arise when you have nothing at all to show an item's value or that it even existed.
6- Disputes in coverage
Homeowners coverage issues might never come to light until an adjuster starts investigating your property claim. Unfortunately, it's your duty to report increased hazards, home value changes, and other policy-related facts that might cause insurance claim problems. The adjuster won't necessarily deny your claim, but he might use your coverage issue to negotiate a low settlement.
7- The insurance company’s policy interpretation places you at a disadvantage
Your homeowners policy's “Loss Settlement” clause penalizes you for not insuring your home to 80 percent of its value. This "coinsurance" cause and other policy provisions put you at a disadvantage because your insurance company knows the policy better than you, they also generate the value calculations that show you should be penalized.
8- It's easy to misinterpret your policy
Insurance company adjusters study policy language. They handle hundreds of claims each year, so they understand seemingly ambiguous clauses that you might easily misinterpret. Your limited policy knowledge might not be enough to hold your own during a coverage dispute.
We Can Help
Miller Public Adjusters currently serves the states of
Wisconsin - Florida - 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.