Property Insurance
At The Morgan Law Group., our Louisiana, Mississippi, California, and Puerto Rico Florida insurance claims attorneys know there are multiple things home, condo, and business owners can do to help strengthen their hurricane, flood, or fire damage claims.
Unfortunately, there are also several things they can do to hinder their insurance claims, which can lead to payment delays, undervalued assessments, and outright denials.
Here is a list of the most common mistakes property owners make, so you can avoid putting your insurance settlement at risk.
Failing to Review the Insurance Policy Thoroughly
One of the immediate actions a property owner should do after sustaining damage to their property is to review the insurance policy in detail. This document outlines the scope of your coverage, deductibles, exclusions, and deadlines. Many policyholders skim through it and miss important details, especially clauses that may limit coverage for certain types of damage.
Since insurance policies function as legally binding contracts governed by state regulations, it is essential to understand what you have agreed to and how it may affect your claim. Paying close attention to provisions related to deadlines and documentation can make a notable difference in the claim process.
Failing to File a Timely Insurance Claim
The most common and costly mistake home and property owners can make when pursuing their insurance coverage for damages is not filing their claim on time.
The insurance company does not need a legitimate excuse to deny your claim, so it is important not to give them one.
The sooner you file a property damage claim, the sooner your claim can be resolved, and repairs can start. The longer you wait, the more severe the damage may become, leading to a second mistake.
Failing to Mitigate Further Damage
When damage to your home, condo, or business occurs, it is crucial that you do what you can to mitigate further damage. That means putting a tarp over a hole in the roof or boarding up a broken window, so rain or other elements do not increase your damage. Insurance pays for unexpected damage, not damage that could have been prevented.
Failing to Properly Document All Damage
We have talked about the importance of documenting your property and possessions before any damage occurs. It is equally important to document the damages as soon as it is safe to do so. That includes creating a list of damages and supporting images of what they look like after the storm, fire, or other damage occurred.
When you have a documented inventory of your property and pictures that support the documents, it is much easier to show the insurance company before and after images that support your claim. Without it, the insurance company is unlikely to simply take your word for it.
Overlooking Hidden or Gradual Damage
Some damages are not always obvious – rotting wood, mold behind walls, or slowly growing cracks may appear minor at first. Overlooking issues that arise after sustaining damage can weaken an insurance claim because these problems often worsen over time.
In many cases, insurance companies require thorough inspections and prompt reporting. If a policyholder fails to identify gradual or hidden damage and report it within the required timeframes, it can be challenging to obtain coverage later. Scheduling a detailed inspection can help reveal areas that might otherwise be missed.
Using Unlicensed or Uninsured Contractors
Property owners might attempt to speed up repairs by hiring someone without verifying proper credentials. This can backfire if the work is subpar or if an accident occurs during the project.
Unlicensed or uninsured contractors may leave you unprotected against liability for onsite injuries or faulty repairs after sustaining damage to your property, which can lead to claim disputes with insurers. Always verify a contractor’s licenses and insurance status through state boards or official government portals before authorizing work. Working with credible professionals helps maintain the integrity of your claim and your property.
Miscommunications with Insurance Representatives
Insurance representatives, including adjusters, often reach out for statements and documentation after you report sustaining damage. Miscommunications can arise if you provide unclear or incomplete information.
While it’s important to cooperate, it is also wise to keep clear records of all phone calls and written correspondence. A detailed paper trail can help resolve misunderstandings that could slow your claim. If you are unsure about a particular question or request, it can be beneficial to seek legal guidance to ensure your statements accurately capture the scope of the damage.
Accepting the First Settlement Offer Too Quickly
Once a property damage insurance claim is submitted, an initial settlement offer may arrive sooner than expected. Although a quick resolution can feel like a relief, it might not reflect the true cost of repair or replacement – especially if all sustained damages have not yet been calculated.
Accepting an offer prematurely can result in losing out on funds needed to restore your property to its pre-loss condition. A thorough damage assessment and, if needed, an evaluation by qualified professionals can prevent settling for a lesser amount.
A property damage claim can be more involved than it appears at first glance. By carefully reviewing your insurance policy, filing your insurance claim on time, mitigating further damage, properly documenting the sustained damage, confirming hidden or gradual damage, hiring licensed contractors, maintaining clear communication, and evaluating all settlement offers, you can help safeguard your rights as a policyholder.
Taking the Insurance Company’s Word for What Your Damages Are Worth
Just as you would not expect the insurance company to take your word for the damages you sustained without actual evidence, you should not take their word for what your damages are worth. In most cases, the initial settlement offer is going to be much lower than your actual damages are worth. You do not have to accept their initial settlement offer.
Instead, contact our experienced insurance claims attorneys in Florida, Louisiana, Mississippi, California, or Puerto Rico by calling 888-904-2524 to schedule a free consultation and learn how we can help you pursue the outcome you deserve from your insurance policy without further delay.
