Dealing with an insurance claim after a disaster or loss can be incredibly stressful and confusing. Navigating the claims process is full of potential pitfalls that can cost you a significant amount of money if you make the wrong moves. Having a trusted public adjuster guide you through the process can help maximize your claim recovery, avoid delays, and reduce headaches.
But if you choose to go it alone, beware of these common mistakes policyholders often make when filing claims without representation:
1. Not Thoroughly Documenting Your Losses
One of the biggest errors people make when filing claims themselves is not properly documenting their losses. Insurance companies want to see ample proof and evidence of the extent of your damages in order to process your claim accurately. The more documentation you can provide, the better.
As soon as possible after a loss or disaster:
- Take detailed photographs and videos of the damage. Photograph even small damaged items. Different angles and close-ups are useful for insurers.
- Make a comprehensive home inventory list of each and every damaged or lost item. For more significant items, gather purchase receipts, owner’s manuals, warranty cards, appraisals etc.
- Get written repair estimates from reputable contractors. Be sure to itemize structural damage, clean up, debris removal, mold remediation, smoke damage, water extraction, etc.
Proper documentation prevents insurance companies from underestimating or minimizing your losses. An experienced Florida public adjuster knows exactly what kind of documentation carries weight with insurers. They will advise you on compiling documentation that provides irrefutable evidence of your damages.
2. Accepting the Insurer’s First Offer
A major error to avoid is accepting an insurance company’s first offer on your claim. Many policyholders wrongly assume the initial settlement offer they receive is fair, reasonable and final.
In truth, most insurance providers deliberately make unreasonably low initial claim offers. They make these lowball offers hoping desperate and overwhelmed policyholders will grab the quick cash in their time of need.
Instead of accepting the first offer:
- Do your research and understand what your losses and damages should reasonably amount to.
- Counteroffer with a higher claim number based on your documented losses and repair estimates.
- Negotiate calmly but firmly. Discuss any differences with the adjuster. Provide evidence and justification supporting the requested increased payouts.
- Be prepared to negotiate back and forth to a fair settlement.
Data analysis shows that represented insurance claims consistently result in 1.6 times larger claim payments than unrepresented claims. Having a public adjuster in Orlando Florida as a negotiator on your side levels the playing field and results in maximum claim recovery.
3. Not Understanding Your Insurance Policy
Trying to comprehend the intricacies and fine print of an insurance policy on your own during the stressful claims process is difficult. But having a thorough understanding of your unique coverages, limits, exclusions and deductibles is crucial to making sure you receive every applicable benefit.
Key things to analyze in your particular policy:
- Replacement cost value vs. actual cash value coverage
- Extended replacement cost coverage to meet current building code standards
- Code upgrade coverage to cover modern building code requirements
- Loss of use coverage – provides reimbursement for hotels, meals, laundry, etc. during repairs
- Mold coverage – not included in all policies
- Coverage caps and limits of liability
An experienced public adjuster in Florida can interpret how all the nuances and coverages in your policy apply to your specific loss scenario. Don’t leave money on the table by not maximizing available coverages.
4. Choosing the Wrong Contractor
Choosing which contractor will repair or rebuild your home or business after a covered loss is a crucial decision. Picking the wrong contractor can result in shoddy work, drawn-out delays and reimbursement denials from insurance companies. Avoid these common pitfalls when selecting a contractor:
- Choosing the cheapest bid – the lowest estimate often reflects lower quality materials and rushed or unskilled work
- Using a contractor referred by your insurance company or their adjuster – they will often recommend a contractor that provides the least expensive option for the insurer
- Paying upfront in full – offer to pay in installments upon completion of work milestones rather than all upfront
- Not thoroughly vetting licenses, credentials, insurance and references
- Not getting at least three written bids for comparison
Instead, ask around your community for contractor referrals from people you trust. Carefully check credentials, experience and references. Obtain several written estimates to compare scope, price and materials. Negotiate fair payment terms upon work milestones.
A public adjuster can help prescreened contractors for competence. They also review repair bids to ensure fair pricing and prevent insurers from steering you toward inadequate contractors.
5. Providing Recorded Statements Too Early
Insurers and their adjusters often request recorded statements from policyholders very early in the claims process. They want to gather as much upfront investigative information as possible about your loss. However, providing an official recorded statement in the first days after a loss is usually not in your best interest. Emotions and stress run high, details can get confused, and statements given under duress can be used against you.
Instead, politely decline to provide an immediate official recorded statement after a loss. Explain to the insurance company that you are currently documenting damage, consulting contractors for repair estimates, reviewing your policy coverages, and accounting for losses. Let them know you will be fully prepared to provide a clear, detailed statement once you collect and organize the needed claims information. This buys you valuable time.
An experienced public adjuster knows the right timing and approach for providing well-prepared recorded statements on your behalf. They represent your interests in the claims process. Avoid making quick verbal missteps under stress that could jeopardize your claim.
The Value of Hiring a Public Adjuster’s Expertise
As evidenced above, the insurance claims process after a disaster is full of potential pitfalls and delays that can cost policyholders thousands. Having an experienced third party public adjuster to represent your interests improves the odds of maximizing your rightful claim recovery after a loss.
A public adjuster is a licensed claims professional who only gets paid if you get a settlement from the insurance company. Their expertise and sole allegiance is helping policyholders navigate the claims process, documentation, negotiating and contracting. This improves your settlement while lowering frustration.
CCA Public Adjusters has decades of experience successfully representing Florida claims for all types of disasters and losses including hurricanes, floods, fires, mold and storm damage. Contact us today for a free claim review, damage assessment and repair estimate from the best public adjuster in Florida.
Get the optimal insurance claim settlement you deserve. Call us at (407) 565-7642 or email info@ccauaa.com to get started.