Insurance Claim
At The Morgan Law Group, our insurance claims attorneys represent clients across many states, because we know the challenges that come with filing a property damage claim in each state or territory. More importantly, we understand how difficult it is to get a fair valuation for their damages, and an adequate settlement amount that makes our clients whole again.
Insurance companies often present a document known as a “property damage release form” when you file a property damage insurance claim. Signing this form can have significant legal implications. Therefore, it is crucial to understand what this document entails before making any decisions.
With decades of service in representing homeowners and property owners in insurance claims across the country, our insurance lawyers at The Morgan Law Group provide valuable insights into whether you should sign a property damage release.
Here is what insurance policyholders need to know.
What Is an Insurance “Release of Claims?”
If you file a property damage insurance claim with your provider, they will supply you with a “release of claims” document before they issue a settlement check.
In most cases, signing the document will finalize your claim. That means you agree with the valuation and release the insurance company from any further liability to this specific claim in exchange for the settlement amount.
If you believe the insurance company is providing a full and fair settlement office, signing the release may do you no harm. However, if you disagree with the valuation, and believe you are entitled to a better settlement, do not sign any documents the insurance company provides.
It is very important to remember that you are not required to sign a release to receive properly owed benefits under an insurance policy.
What Is a Property Damage Release Form?
A property damage release form is a legal document that, once signed, typically absolves the insurance company from further claims related to the incident. The main objective of this form is to confirm that any payment made by the insurance company is accepted as the complete resolution for the damages.
One of the most important aspects of a property damage release form is its potential impact on future legal options. Generally, the language in these forms is designed to protect the insurer by stating that the agreed-upon settlement is final. In many jurisdictions, courts look for clarity and fairness in the wording.
A release form must be sufficiently explicit so that the signer understands the rights being given up. Failing to read and comprehend every section can lead to confusion, especially if further damage is discovered after the check has been cashed. For instance, if hidden structural problems become apparent down the line, the insurance company may deny additional payments because the release form closed the claim.
Generally, a property damage release form includes:
- Identified of Parties: A clear property damage release form usually begins by naming the involved parties. This includes the policyholder (or claimant) and the insurance company.
- Incident and Scope of Damages: A concise explanation of the cause of the property damage, such as a storm, fire, or accident. Detailing the scope of damages – whether it’s structural harm, personal belongings, or both – helps frame the agreement around the specific incident.
- Settlement Terms and Payment Details: The release form indicates the total amount offered by the insurer to resolve the claim. It generally outlines how and when the funds are paid, whether through a single check or multiple payments.
- Release of Further Liability: One of the most critical sections in any property damage release form is the explicit waiver of future claims. This provision states that once the claimant accepts the payment, all possible additional or unforeseen damages related to the specific incident are considered settled.
- Acknowledgment of Legal Rights: A legally sound release form often includes a statement confirming that the signer understands their legal rights and is voluntarily relinquishing certain claims.
- Signatures and Dates: For the release form to hold up in a legal setting, signatures from all relevant parties are necessary. The date of execution is also included.
Insurance laws address the enforceability of releases in insurance settlements. For example, consumer protection statutes require that the language be plain and conspicuous to avoid deceptive practices. This ensures individuals can make informed choices regarding final settlements.
Evaluating the Property Damage Release Form
Before signing a property damage release form, consider the following steps:
- Review: Thoroughly review the settlement offer and the terms of the release. It’s crucial to understand every aspect of the agreement.
- Assessment: Have a professional assess the property damage. There could be hidden damages that are not immediately apparent.
- Consultation: Consult an insurance claim attorney who can provide legal advice based on the specifics of your case.
Deciding whether to sign a property damage release involves careful analysis of the settlement offer and the potential future implications of signing the release. It is highly recommended to seek our insurance claims lawyers. They understand the complexities of insurance claims and can guide you through the process.
Should You Sign a Property Damage Release Form?
This is a question that requires careful consideration. When you sign this form for a property damage insurance claim, its implications include:
- Finality: Signing a release form generally means that you cannot reopen the claim, even if additional damages are discovered later – you may find yourself responsible for repairs that exceed the amount received.
- Settlement Amount: It is essential to ensure the settlement amount adequately covers all damages. Once the release is signed, obtaining additional funds from the insurer for that claim becomes nearly impossible.
Insurance companies often propose a lump sum payment. This may seem sufficient at first glance, but a detailed calculation helps determine whether the amount truly covers repairs, replacement costs, and any related expenses.
Some property damages might have long-term consequences, such as structural weaknesses or mold growth. Addressing these issues can be expensive, so it’s important to confirm that the initial settlement is enough to handle both immediate and future repair needs.
- Legal Rights: Signing the release can affect your legal rights, including pursuing further compensation through legal actions. States typically enforce release agreements that are willingly signed unless there is evidence of fraud or misrepresentation.
Before finalizing any settlement, review your policy documents. Check coverage limits, deductibles, and any relevant endorsements. Some endorsements might change how property damage is covered, influencing the total payout.
The rights and obligations concerning property damage releases can vary. Certain jurisdictions require clear and unambiguous language in the release form to be legally binding. It’s advisable to be aware of such legal nuances, which can significantly impact the decision to sign.
How Do I Know if My Insurance Settlement Offer Is Fair?
Each insurance claim is unique, so determining what is fair to one property owner may differ for another, based on the facts of the case.
However, if you believe the insurance company’s settlement offer is unfair, you should:
- Review the terms of your insurance policy.
- Take photographs of your property damage.
- Document all conversations with the insurance company representatives.
- Keep records of all repair-related expenses.
- Obtain an appraisal from a qualified neutral party.
- Get a second damage estimate, if needed.
- Be prepared to contact an attorney.
It is important to understand that the claims adjuster who is assessing your property damage works for the insurance company. That means he or she has their employer’s best interests in mind when evaluating your damages.
At The Morgan Law Group, our skilled insurance claims attorneys in Florida, Mississippi, Louisiana, California, and Puerto Rico will evaluate your insurance policy, including what is covered by its terms and conditions, and have an experienced public adjuster evaluate your complete property damage for what it is actually worth.
Before making a decision, ensure that you are fully informed and supported by legal advice tailored to your situation. Reach out to our insurance lawyers to secure your rights and obtain a fair resolution. Contact us today to schedule your free case evaluation.
