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Why Insurance Claims Are Underpaid and How to Avoid It From Happening to You?

Insurance claim underpaid IZP Consulting

Your property insurance is supposed to help relieve the financial burden of damage to your home due to water, fire, theft, or collapse. That’s why receiving a settlement that doesn’t even begin to cover the cost of repairs can be devastating.

Unfortunately, this is not a new or uncommon occurrence when homeowners file an insurance claim independently. The insurance company will pay as little as possible towards your property damage claim, if anything at all. The insurance company saves money and increases its bottom line by minimizing payouts and offering you a minimal settlement. Insurance companies rarely offer policyholders settlements that cover all property damages.

Why do insurance companies underpay claims?

There are a few factors that can contribute to your low settlement offer. They can include:

  • Your property damage was not fully assessed. When you file an insurance claim, the insurance company sends an insurance adjuster to evaluate the damage. The adjuster may not have thoroughly identified the damage that was done. For example, in cases of a house fire, they may not have documented the damage caused by soot or smoke.
  • You misinterpreted your policy. Insurance policy language can be challenging to understand. You may have read your policy thinking you are fully covered for the damages when in reality, only a portion of the damages are covered. It’s crucial that you completely understand the terms of your policy.
  • It’s easier just to take what is offered to you. Depending on how much damage has been done to your property, you may be desperate for any type of compensation. Accepting a lower settlement may seem like a better alternative to trying to negotiate with your insurance company.

How can you avoid getting underpaid for your claim?

Regardless of why you are underpaid in your settlement, it’s important to know that you have rights as a policyholder. The best way to ensure you get a fair insurance claim settlement is to hire a Public Adjuster.

Public Adjusters will work with you every step of the way through your claims process. They are your advocates and will use their expertise to get you the maximum payout from your insurance company. They are claims professionals. They will help to assess the damage done to your property, review your policy to determine exactly what you are covered for, and do all the negotiating with the insurance company on your behalf. 

If you’re dealing with a loss due to fire damage, water damage, mold, theft, structural damage, or an appliance leak, call IZP Consulting today.

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