Low Settlement Offers – What can you do?

It is not uncommon for insurance companies to offer less to policyholders on their claims. Insurance company adjusters hope that policyholders won’t understand how much a claim is worth, and accept whatever the insurance company offers them. With that in mind, if you believe that your property insurance settlement offer should be higher, you have the right to contest the offer with the insurance company.

Keep in mind that unless you have proof that the loss is worth more than they are willing to pay, the insurance company will not increase the offer. It is in your best interest, as a policyholder, to think proactively about your property and how it can be affected by a loss such as fire, wind, or water damage.

Steps To Maximize Your Settlement

• Take Pictures of the Property – It is always best to take pictures of the insured property before a loss occurs.  Without pictures, it can be very difficult to prove that the property was exactly as you described. For instance, if you built an addition on your building and it was completed, how do you prove the construction was completed? Having pictures or video is adequate proof of the newly completed construction. Notify your insurance company when you have made changes and upgrades to your property.  Also, after a loss has occurred, you should always take pictures of the damage. That preserves the evidence before cleanup takes place. Having before and after pictures provide a clear picture of the damage that was sustained.
• Talk with the Insurance Company – Before you contest any offers made by the insurance company, you need to confirm: how much and what types of coverage you have purchased under the policy; any deductibles that apply to the coverage; and the circumstances surrounding the loss. Be an informed policyholder, know your contractual rights, and don’t allow a bad faith insurance company to wrongfully deny you what is due under your insurance policy.
• Remain Civil with the Insurance Company Claims Adjuster – Don’t yell at, threaten, or be belligerent with your claims adjuster or any other insurance company representative. People are more likely to help you if you are pleasant with them. You can assert your contractual rights while being pleasant and respectful to everyone involved in the handling of your claim.
• Don’t Accept the First Offer – The first settlement offer that insurance company adjusters make is usually lower than they are ultimately willing to pay. Adjusters hope that you will take what they offer the first time, not knowing what your claim is really worth. That is why it is so important to do your research and obtain help if you are not sure what you are doing. Ultimately, if you feel your loss is greater than what they offer, stick to your guns and negotiate until you get what it is worth.

If you feel that you are unable to obtain adequate and fair compensation from a bad faith insurance company, contacting a skilled property and casualty attorney may be your only hope of being paid fairly. The Smythe Law Group, Inc. protects property owners from bad faith insurance companies that attempt to unfairly pay for losses. We help our clients obtain the maximum amount their insurance policies will pay. Call us for assistance with your property insurance claim, and let us help you get back on your feet.