When disaster strikes, homeowners rely on their insurance policies to help cover damages and repairs. However, what many don’t realize is that insurance adjusters work for the insurance company, not for you. Their goal is to settle claims while saving the company money. Understanding the hidden truths about the claims process can help you get the payout you deserve. Here are some key things home insurance adjusters won’t tell you:
1. Your First Offer Might Be Low
Insurance adjusters often start with a lower settlement offer, hoping you’ll accept it without question. Many homeowners don’t realize they have the right to negotiate and present counter-estimates from independent contractors or public adjusters. Always review the offer carefully and push back if it seems inadequate.
2. You Can Hire a Public Adjuster
Public adjusters are independent professionals who advocate for homeowners, not the insurance company. They work to maximize your settlement and typically charge a percentage of the claim amount. If your claim is significant, hiring a public adjuster can result in a much higher payout than what the insurance company’s adjuster initially offers.
3. You Don’t Have to Use the Insurance Company’s Contractors
Insurance companies may recommend contractors who agree to work within their budget constraints, but that doesn’t mean they’re the best option for you. You have the right to choose your own contractor, one who will ensure your home is properly restored without cutting corners.
4. You Can Reopen a Claim
If you’ve already settled your claim but later discover additional damage, you may still be able to reopen it. Many policies allow homeowners to file supplemental claims for overlooked damages, but insurance companies rarely inform policyholders of this right.
5. Depreciation Can Be Negotiated
Adjusters often apply depreciation to lower the payout, but this amount can be disputed. If you have replacement cost coverage, you should receive enough to replace damaged items at current market prices, not their depreciated value. Be sure to review your policy details carefully.
6. Delays Are Often Strategic
Insurance companies sometimes delay claims in hopes that homeowners will get frustrated and accept a lower settlement or give up altogether. Keep meticulous records of all communications, follow up regularly, and consider seeking legal help if the delay becomes excessive.
7. Your Policy Might Cover More Than They Let On
Some adjusters may not mention all the benefits in your policy, such as additional living expenses (ALE) if your home is uninhabitable, or ordinance and law coverage, which helps pay for bringing your home up to code during repairs. Always read your policy thoroughly to understand your full coverage.
8. You Have the Right to a Second Opinion
If you disagree with the insurance adjuster’s assessment, you can hire an independent appraiser or contractor to provide a second opinion. In some cases, you may be able to enter an appraisal process where a neutral third party helps determine the fair value of your claim.
9. What You Say Can Be Used Against You
Be cautious when speaking with an insurance adjuster. Simple statements like “It’s not that bad” or “I think it might be partly my fault” can be used to justify a lower payout or even deny your claim. Stick to the facts, document everything in writing, and avoid making unnecessary comments.
Final Thoughts
Home insurance claims can be complex and challenging, but understanding these hidden truths can help you navigate the process more effectively. Don’t accept the first offer, be aware of your rights, and seek professional help if necessary. The more informed you are, the better positioned you’ll be to receive a fair settlement for your home repairs.