 When I receive a call from a policyholder who needs help with their property damage insurance claim, it frustrates me when I have to tell them they have limited coverage, that they have no coverage, or they have a high deductible.
To hear their surprise is astonishing to me. Policyholders really don’t know the coverage in their policies, or should I say the lack of coverage. Haven’t their agents discussed the policy with them? How can they be so unaware? As a follow-up to my past blogs about the Erosion of Coverage, I am frustrated that the Office of Insurance Regulation continues to allow insurance companies to make policy changes that are not beneficial to property owners, and more detrimental when they have to file an insurance claim. This Can Happen To You A recent call led me to write about this again. An elderly couple’s daughter asked me for help with her parent’s hurricane claim in Delray Beach, Florida. They had roof damage as well as a few rooms of interior damage resulting from the roof leaking. She could not understand how the insurance company’s first estimate included the full roof replacement, then in subsequent emails, the estimates changed, and they paid very little on her parent’s claim. In addition to an almost $20,000 deductible, the policy contained an endorsement for Matching of Undamaged Property, and it was limited to 1% of the Coverage A policy limit. The roof is damaged on a few slopes. At first the adjuster wrote to pay the entire roof replacement. In the subsequent “Estimate Change Forms” and “revised estimates” from the insurance company, they put the “undamaged” roof items, dumpster fees, and gutters under the “1% Matching of Undamaged Property” endorsement. The insurance company paid two separate checks. One check was for repairs to the damaged portions of the roof. A second check for about $3,700.00 was for the $67,000 worth of “undamaged” line items they listed in a separate section of the estimate under the 1% matching endorsement. Know Your Policy Coverage Most property owners do not have $67,000 sitting around to pay for property damage, especially when they pay insurance on their property and expect to be covered in the event they have a claim, especially a catastrophic claim. You need to know your policy and the coverage it provides before you have a property damage claim. Coverage Limits Between $10,000 water damage limits, roof depreciation schedules, 1% matching of undamaged property, and high deductibles, policyholders can be left with high out of pocket costs for repairs. Meanwhile insurance premiums have not decreased but continue to increase. Shop Coverage Not Price Due to the high cost of insurance, many people are trying to cut their costs and have more affordable insurance. Unfortunately, you may have less coverage if you do that. Depending on the age of the home or some of its components, you may have no choice and have limits placed on the policy. There still are insurance companies writing coverage, so I suggest you review your policy and see if you have any policy limitations. If you do, contact your agent and see if they can place you in a policy without limits, or if you can increase the limit. If you have any questions, a new or underpaid claim you need help with, we are here to help. Contact us today for a free consultation. We treat every client’s claim as if it were our own.
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 When your property is damaged, you believe you are protected and covered by your insurance policy. All you want is to restore your property as it was before and do it as quickly as possible.
Through the years, we have witnessed insurance companies implementing changes and limiting or excluding not only needed coverages, but also your options when it comes to resolving a claim dispute. Importance Of Documenting Damage A Public Adjuster plays an important role in your property damage claim. They represent and advocate for you as the policyholder, just like an independent or company adjuster represents the insurance company.An experienced public adjuster will work to properly assess and document your property damage, take detailed photographs, and prepare a detailed cost estimate to repair or replace the damaged property. They will attend all inspections and prepare the necessary forms for submission on your behalf. Claim Dispute Resolution Options Often when the insurance company issues an “undisputed claim payment”, there may still be unresolved damages not accounted for by the insurance company, or they simply refuse to properly settle your claim. Appraisal Throughout the years, there have been many changes to coverages, but also to your options when there is a claim dispute. The appraisal process has always been a professional means to resolve claim disputes and either party could demand appraisal. A policyholder would appoint their appraiser, the carrier would appoint their appraiser, and both appraisers would agree on a mutual umpire and the process would move forward. Once resolved, the signed appraisal award would be a binding settlement. Insurance companies have changed the appraisal language in their policies and many now must agree to participate in the appraisal process. Some carriers are including specific language which limits the process, making it almost impossible for the policyholder to comply. Mediation Mediation can also be a means of resolving a disputed claim, but it is not binding unless an agreement can be reached and settled between both parties. For this reason and because of the changes to the appraisal language, it seems as though the insurance companies are leaving the policyholder no choice but to litigate. Litigation Or Repair Your Property Before legislative changes were made to remove one way attorney’s fees, litigation was an option for policyholders if their claim could not be resolved, and the insurance company would be responsible to pay the policyholder’s attorney’s fees during a claim dispute. This became a costly expense for insurance companies. Now it is the responsibility of policyholders who must now incur their own litigation costs. Coming out of pocket for litigation costs is a costly option for any policyholder, especially when you need to repair your property. Depending on the unresolved amount of your claim, and the costs it would take to litigate your claim, it may not make sense to litigate but just to repair your property. Our skilled professionals have outstanding customer service and treat every client’s claim as if it were our own. We are by your side every step of the way. You don’t need to navigate the claim process alone. Reliant is here to help. Contact us today for a free consultation. |
