5 Warning Signs Your Insurance Company Is Lowballing Your Claim
As public adjusters with years of experience handling insurance claims, we've seen many cases where insurance companies will attempt to minimize payouts to our clients and other policyholders. Here are some key warning signs that your insurance settlement offer might be lower than you deserve.
1. Fast Settlement Offers
If your insurance company presents a settlement offer within days of your claim, especially if your home or business suffered significant damage, you should be very cautious. Thorough damage assessment takes time, and a rushed settlement may not fully account for the full scope of damages.
2. Neglecting Hidden Damage
Insurance adjusters sometimes try to focus only on visible damage while ignoring potential underlying issues. For example, after water damage, your insurance company might offer to replace the flooring but overlook potential mold growth or structural weakening that could develop later. Smoke damage also frequently goes unnoticed. Your fire damage may be covered and paid for, but smoke embeds itself deeply in cloth, carpet, or other soft materials, and the cost to replace these items may not be included in your initial offer.
3. Depreciation Manipulation
While depreciation is legitimate and will have a large impact on your settlement amount, some insurers may depreciate items far beyond what your item's quality may represent. Watch for unreasonable depreciation rates on relatively new items or on any high-value items like furniture, electronics, and collectibles.
4. Minimal Communication
Insurance companies frequently communicate slowly, provide vague answers, and give you the runaround in hopes that you'll accept a lower offer out of frustration or exhaustion. A public adjuster, like our professionals at Edwin Claude, can put pressure on your insurance company and hold them liable for any bad faith violations that end up slowing your claims process.
5. Using Preferred Contractors
If the insurance company insists on using their preferred contractors without allowing you to get independent estimates, they might be working with vendors who consistently provide lower repair estimates. Remember, if someone is sent to your house by the insurance company, they do not work for you! Let someone who represents your best interests assign values to damages, and you’ll see a massive difference in your settlement amount.
What to Do If You Suspect You're Being Lowballed
Document Everything
Keep thorough records of all damage by taking clear photographs and videos, and save all communication with your insurance company, including emails and written correspondence. Hold on to receipts for emergency repairs, temporary housing, food, and any other essential purchases made before receiving a settlement.
Get Independent Assessments
Consider hiring licensed contractors to provide detailed repair estimates to help you get a fair assessment of repair costs. If there is structural damage, engineering reports may offer valuable insights into the extent of the issues.
Know Your Rights
Carefully review your insurance policy to understand your coverage and familiarize yourself with your state's insurance regulations. Oftentimes, policies will have hidden language that can alter the outcome of your claim.
Seek Professional Help
Remember, insurance companies are businesses focused on profitability. While many are reputable and practice ethical decision-making in their business, it's essential to advocate for your own rights and desires as a policyholder. If you notice these warning signs of a lowball offer, consider speaking to a public adjuster. Our team of licensed Missouri public adjusters specializes in reviewing and negotiating insurance claims and maximizing insurance settlements for our clients. Reach out today at 314-993-2266 for a free consultation! We are ready to help you get the settlement you deserve!
