STEP-BY-STEP GUIDE TO NEGOTIATING A PROPERTY DAMAGE INSURANCE CLAIM

Transcription

1 STEP-BY-STEP GUIDE TO NEGOTIATING A PROPERTY DAMAGE INSURANCE CLAIM Contact@MillerPublicAdjusters.com Headquarters 4090 W. Spencer St. Appleton, WI Tel. +1 (866)

2 Contents 03 Understanding the Insurance Company s Approach 05 Steps to Control Your Negotiations 08 What Your Insurance Adjuster Might Not Tell You 09 Understand & Avoid Common Claim Handling Mistakes 10 Don t Assume You Know What is and isn t Covered 11 Hiring Professional Help

3 Where the Negotiations Begin T H E I N S U R A N C E C O M P A N Y S H O U L D S T E P U P A N D M E E T I T S P R O M I S E You should not have to feel short-changed by you insurance adjuster. Your Homeowners insurance policy is a contract between you and your insurance company. When your home is damaged by an insured peril, you shouldn t have to feel short-changed or treated unfairly. Your insurance company should step up and meet its promise to pay the damages covered by your policy. Instead of taking a hard-nosed approach to settling your claim, the insurance company adjuster should offer compassion, cooperation, fairness, and professional service. As these common courtesies are not included in your policy, it s up to you to demand the treatment and the settlement you deserve. 03

4 Understand the Insurance Company s Approach GET CONTROL OF YOUR CLAIM The Insurance Company wants to take control. It s natural to be a little uncomfortable with your insurance company and their adjuster who handles your claim. Insurance company's don t train adjusters to cheat you. What they want is to control you and your claim. If you ve never read your Homeowners insurance policy, you may have only a vague idea of what is and isn t covered. If you ve never had your home repaired, you might not know a reliable contractor or how to find one. You also might not be familiar with insurance jargon and construction/repair terms. These insurance claim shortcomings can force you to rely on the adjuster for information and insight, and that can put the adjuster in control. THE INSURANCE COMPANY WANTS Control of who repairs your home Control of the materials used Control of how the contractor completes the job Control over how much money your claim costs Control over the timing of your settlement 04

5 Take Steps to Control Your Negotiations 1) Know Your Policy Your policy is a contract that tells you what you and your insurance company must do after a loss. Most property insurance policies are organized the same way. Declarations page - Describes insureds, property location, coverage limits, policy period, and endorsements Insuring agreement - The company s basic promise to you Definitions - Defines common terms and unique insurance meanings for words in your policy enclosed in quotes Section l Property Coverage - Describes what perils are covered or not covered, loss of use provisions, additional coverages, and coverage limitations Exclusions - Explains circumstances and perils excluded by your policy Conditions - Explains your responsibilities after a loss and insurance company options for settling your claim If you try to read your policy and can t figure it out, ask your agent to help you, search for an online tutorial, or consult with an independent claim professional. Your Policy is a Contract. 05

6 Take Steps to Control Your Negotiations 2) Document Your Claim From the moment your home is damaged, it s up to you to document everything. You will have many details to keep track of and activities to coordinate. You need a central location to keep the information easily accessible. You can accomplish this by setting up your own claim file. Keep a chronological list of phone calls, texts, and s from your insurance company, agent, repair contractors, and any other contact relevant to your claim. List and describe concerns you need to address with the adjuster. Take photos of building and content damage immediately after it occurs. Get updated photos to document the restoration process. Find photos, receipts, invoices, delivery document, brochures, guarantees, or operating manuals to help establish the value of damaged or destroyed contents. Keep copies of claim bills, invoices, and estimates. Keep receipts for anything you spend after your home is damaged. You might need them to document your additional living expenses. Get a hard copy of your policy to review 3) Get Independent Estimates Talk to friends. Ask relatives. Check with the Better Business Bureau. Consult an online contractor referral service. If you don t find your own repair contractor, you might end up using a contractor from an adjuster s approved/recommended list. Approved contractors help insurance companies control claim costs. They perform the work based on the adjuster s appraisal. They answer to the insurance company and in return, they get access to future insurance company claim business. 06

7 Take Steps to Control Your Negotiations 4) Settle when you re ready Working your way through a catastrophic loss changes your life in unimaginable ways. Unfortunately, the insurance company may take advantage of your desire to put it all behind you and push you to settle your claim too early in the repair process. Insurance claim experience shows that the longer a claim remains open, the more it s likely to cost. This is reflected in insurance company supplemental reserve procedures. Adjusters set a reserve for your claim based on projected cost estimates. Don t Settle For Less. 07

8 What Your Insurance Adjuster Might Not Tell You Some adjusters will take the time to explain everything and answer any questions. Others will refer you to your policy and explain that the company gives you a copy so you will know what s covered. Consider these common claim concerns that your adjuster might fail to mention. You Are Entitled to Payments for Additional Living Expenses Under Coverage D - Loss of Use - Additional Living Expenses, your policy agrees to pay your extra expenses when you and your family must live away from home. Turn in all receipts for meals, transportation, hotels, hotel services, extra mileage, facilities rentals, and anything you paid for that could relate to maintaining a residence while your home was out of commission. Negotiate the Items that Should Be Replaced, Not Cleaned Know that there are things that should be replaced and not just cleaned. This includes personal property and building materials. Depreciation is Negotiable When the adjuster applies depreciation to your claim, it can significantly reduce your upfront payment. While adjusters should depreciate property based on condition, most rely on standard tables that list average life expectancies of personal property items. Depending on the amount deducted, it may be worth fighting. A Computer Might Calculate Your Claim You Don t Have to Accept What is Offered Know what your policy agrees to pay Know what you want and get estimates to document the costs Understand your policy s depreciation and valuation provisions and coverage limits Maintain records of all your expenses and repair costs Know what you need to restore your home to its original condition Get your contractor to back you up Some insurance companies use computers to estimate repair costs and damage. An adjuster will still negotiate your claim, but it might be difficult to get them to be flexible about the repair costs using a program like Xactimate without having knowledge in that same program. Having a qualified contractor review the estimate using the same programs. They Must Meet State Guidelines State insurance departments and commissioners that govern insurance company activities establish guidelines for contact, coverage determination, settlement offers, and other insurance and claim responsibilities. Simply mentioning your state s department of insurance can make an adjuster handle your claim more conscientiously. 08

9 Insurance Company Adjusters will Disrespect You. Understand & Avoid Common Claim Mistakes Don t Dispose of Damaged Property If you hurry to clear damaged property before your insurance company can confirm that it is not salvageable you may jeopardize receiving your full settlement. You are required to protect your property The adjuster examining your home will look for signs of preventable damage that occurred after the initial loss. Policy duties require you to protect your property from further damage...: The Exclusions section explains that your policy won t pay damages due to Neglect from failing to save and preserve... property after a loss. If you fail to protect your property, it could reduce the amount of your claim. If you don t cooperate it could cost you When your insurance adjuster asks for a statement, examination under oath, proof of loss, or other items, don t take it lightly. These duties are outlined in your policy. Adjusters sometimes leave it up to you to figure out what you are looking for. Failure to comply could jeopardize your settlement. Underinsuring your home affects your claim payment Your insurance adjuster may calculate the value of your home while writing your damage appraisal. it s important to take proactive steps to establish your home s value before the adjuster concludes that you are underinsured. Before the adjuster s first visit, print out a county auditor s most recent assessment. Find real estate cost comparisons. Do what you need to do to demonstrate that you have enough coverage. 09

10 Don t Assume You Know What Is and Isn t Covered Some homeowners think of their home insurance policies in terms of covering a building and its contents. A modern Homeowners policy is actually a package of coverages for a variety of items and situations. You have no way of knowing what is covered until you review the entire policy. The adjuster handling your claim might not know either. Before settling your claim, review your policy s Additional Coverages provisions. They include coverages for these items and more. WHAT IS COVERED BY POLICIES Debris Removal This provision pays to haul away debris resulting from a covered peril. It also includes volcanic ash removal and Reasonable Repairs This coverage is for costs incurred for labor and services required to protect your property after a loss. Trees & Other Plants These items are covered from loss due to specified perils listed in the description. Others Property At your discretion, your policy covers damage to property owned by others and guests while on the part of the premises you occupy. Miscellaneous Property Homeowners policies cover structures that are a permanent part of your home and structures on the property but separate from your home, such as pool houses, garages, and storage sheds. The maximum limit payable is 10% of your Coverage A building limit. Loss Assessment Your policy pays up to $1000. for loss assessments charged by a condominium association for damage to property Appraisal Policies outline an Appraisal process, which you must follow if you can t agree on a claim settlement. You and the insurance company hire your own appraiser. If the appraisers can t agree on a figure, they appoint an umpire. If two of the three agree on a figure, the appraisal award is completed. 10

11 HIRE PROFESSIONAL HELP Working your way through the property insurance claim process can be a draining experience. You have so many tasks to complete, it may seem that you must develop a whole new skillset to work out all of the details. If you can t or don t want to do it on your own, it s your right to hire an insurance professional with the experience and expertise to help resolve your claim. That s what a Public Adjuster does best. Whether you ve suffered a property insurance loss from a fire, water, storm, or any other disaster, understanding your options should be the most important step after filing an insurance claim. A Public Adjuster may be your best option to protect your interests and achieve the best outcome for your property loss. CONTACT US WI Office 4090 W. Spencer St. Appleton, WI IL Office 300 N. LaSalle St Suite 4925 Chicago, IL FL Office Amberly Dr. Suite 250 Tampa, FL Office Hours We are open 24 hours a day, 7 days a week (920) (312) (813) (800) Miller Public Adjusters is licensed and regulated to do business in the states listed below. Illinois - Wisconsin - Indiana - Michigan - Minnesota - Florida - Texas FREE CLAIM REVIEW Call us 24 hours a day at (800) to schedule an appointment or fill out a Free Claim Review online to see if we can help. 11