4 Reasons Not to Accept Your Insurance Company’s First Settlement Offer
When disaster strikes and causes damages to your business or home, your insurance claim settlement is the key to getting back to everyday daily life. You will need the funds to pay your additional expenses, replace your furnishings, and repair your damaged property. Everyone prefers that their settlement check come as fast as possible because they feel like their life is on hold until the claim is complete and they can have their damages repaired.
Even though your insurance claim settlement is the solution to putting your life back together following a catastrophe, do not let the sense of urgency convince you to take the first offer the insurance adjuster makes. Our expert on property claims in Hillsborough County offers the following reasons you should not accept the first offer:
There may be hidden damages
When an insurance adjuster offers you a property settlement, it is only based on what they know. If your property damage is massive, there are usually plenty of unknowns that are not included in their initial offer:
- Water used to put out a fire can leave behind additional damages like mold or mildew
- A fire’s smoky smell can leave behind a lasting stench
- Interior walls can hide damages that are left undetected until repairs start
An adjuster’s appraisal may not cover the extent of your loss
When you have extensive property damage, your insurer settles with you based on an independent or company adjuster’s appraisal. These figures include:
- The description of damages
- Costs of materials
- Prevailing rates for labor
- Overhead and profit
If your insurer and your chosen contractor do not agree on these elements, the insurer may choose to offer what they believe to be fair. However, they may fail to validate their figures by recommending contractors who will complete the work for their offer. Therefore, you must recognize you have other options available to you.
Coverage issues may lead to a low offer
Insurance policies are complex and challenging to understand. They often include various exclusions, conditions, and provisions. However, when your insurer looks too hard and too long at your claim, they can find coverage issues easily. One day, you may check the mail and discover a Reservation of Rights document outlining fraud or arson indicators, increased hazards, potential policy violations, or other coverage issues.
Your insurer may not deny coverage for your claim, but these coverage problems become talking points designed to intimidate you into lowering your settlement expectations. Insurance adjusters will play on your insecurities to leverage a settlement that is a percentage of the claim instead of the total amount of your loss.
An appraisal is an adjuster’s opinion
When your insurer offers a settlement amount for your claim based on the appraisal of an adjuster, it is always negotiable because it is based on their opinion. However, even computer-generated estimates have been called into question because they rely on programming and data input by a person.
These are just a few reasons you should not accept your insurance company’s first settlement offer. Instead, contact us today for property claims in Hillsborough County. Our public claims adjusters will handle your claim, negotiate with the insurance company on your behalf, and work to get you a settlement in line with what you deserve according to your policy.
