When you take out a home insurance policy, you do it with the understanding that should anything happen, the insurer will provide the funds you need to undo the damage, repair your home, and replace any lost belongings. That’s why it’s so frustrating to have a disagreement with the loss adjuster after the worst has happened.
Homeowners can feel powerless when the insurance adjuster offers something that they feel is unfair or doesn’t live up to the policy. They can feel pressured into agreeing to an offer just to get on with their lives. But agreeing too quickly can lead to repairs you’re not happy with or running out of funds before everything has been replaced.
If you’re worried about your insurance claim, don’t fight insurance companies alone. For a significant claim, it can be worthwhile to hire an insurance lawyer to help you negotiate with the insurer and work with the loss adjuster to get you accurate compensation.
These are some of the most common disputes homeowners have with their insurers. If you run into any of these problems, it might be time to call an insurance lawyer to help with negotiations.
Undervalued Personal Belongings
Sometimes a loss adjuster will undervalue your personal belongings. This is sometimes a result of simply not understanding the value of particular items, you as the owner are often in the best position to correct the misunderstanding so speak up. However, it might also be because the adjuster may be trying to save their employer some money, or because they are using standardized values that are outdated, misapplied or just don’t apply to your particular belongings.
With the help of an insurance lawyer, you can go line by line through your Schedule of Loss (a comprehensive list of all of your lost or damaged belongings) and negotiate their value with the loss adjuster.
Disagreements on the Scope of Work
The “Scope of Work” refers to the outline of structural repairs made by the loss adjuster (sometimes with the help of a contractor or engineer). There are many reasons a loss adjuster’s Scope of Work could be inaccurate, but it’s vital that the final Scope is as accurate as possible.
Insurers will likely put out a tender to contractors using the Scope of Work, and almost inevitably they will accept the lowest bid from one of their preferred contractors. If you choose to go with your own contractor instead, the payout will be based on the original bid, which is based on that Scope of Work. If repairs were simply missing from the Scope of Work, you’ll likely have to pay out of pocket, as the budget may already be tight.
Vacant Property and Negligence
Nothing can be more devastating than discovering that your whole claim has been denied, but there are many reasons this could come up. For example, leaving your home vacant or unattended (even on a trip) without notifying your insurance company can lead to a denied claim.
One example of this is leaving your home in the winter and returning to find that your pipes have frozen and burst. In the past, insurers have denied water damage claims because the homeowner wasn’t present to prevent the damage.
Likewise, if the insurer believes that the home was not properly maintained and maintenance could have mitigated damage, they might also deny the entire claim.
Damage Wasn’t Correctly Reported
Documenting and accurately reporting the damage to the insurer is essential. One of the most common reasons a claim can be denied is that information was incorrectly reported, which could include misinformation about the state of repairs or inflating the loss.
With the right help, you can negotiate through many (but not all) of these disputes. If you’ve run into a disagreement, call an insurance lawyer to see what options might be available.
