Planning to make a home insurance claim but avoid the costly mistakes?
Facing fire damage, water damage, or storm destruction in your home is never easy. No homeowner ever wants to file a claim with their insurance company. But when disaster strikes…
Filing a property insurance claim can be a headache.
Between claim denials, lowball offers, and tricky policy language, insurance companies will make it as difficult as possible. But guess what…
The average policyholder is making mistakes that cause their claims to be denied or underpaid.
Recent studies report 23.9 days is now the average property insurance claim cycle time – that’s over six days longer than last year’s results. With companies slowing down claims and adding extra scrutiny, it’s more important than ever to know the common mistakes to avoid.
In this post, we’ll cover:
- Why Property Insurance Claims Get Denied
- The Most Costly Claim Mistakes Homeowners Make
- How To Document Your Damage Properly
- When To Contact Your Insurance Company
5 Reasons Property Insurance Claims Get Denied
Submitting a property insurance claim should be straightforward. Yet 5.5% of homeowners file a claim each year, and many end up with big problems.
Let me share what most homeowners don’t know:
Insurance companies only have one goal. And that is to pay out as little money as possible on every single claim. They will try to find reasons to deny your claim outright or settle for as low a payout as possible. This is why enlisting the help of experienced Property Damage Attorneys is so important. Professional property insurance claims assistance helps you avoid the costly mistakes that lead to claim denials.
If you’re planning to file the claim on your own, then it’s crucial to know what not to do. I’m going to show you the most important mistakes to avoid…
Not Reading Your Policy Before Filing A Claim
Okay, this one might seem obvious. But trust me, most homeowners have never read their actual insurance policy.
BIG mistake.
Your insurance policy is the contract that dictates what’s covered, what’s excluded, and what you must do in the event of a claim. If you don’t understand your insurance policy then you are in for a rude awakening.
Consider flood damage as an example. Most standard homeowners insurance policies exclude flood damage. This is why you need separate flood insurance. However, many homeowners still file flood damage claims without realizing their policy doesn’t cover it. Guess what happens when you file a claim for excluded damage?
Your claim gets denied.
Before you file a single claim:
- Read your policy’s coverage sections
- Know what your deductibles are
- Understand the exclusions and coverage limits
- Make sure your coverages are adequate
It’s a simple step that will save you a lot of time and grief later.
Waiting Too Long To File Your Claim
Timing is critical when it comes to property insurance claims.
Here’s why: Every insurance policy has a time limit on how long you have to file a claim. Some require you to notify the company within 24-48 hours. Others give you a few days or even a couple of weeks.
But here’s the catch…
The longer you wait, the harder it becomes to prove your damages. Witnesses disappear, temporary repairs are made, and the insurance company naturally becomes more suspicious.
Do this instead:
- Notify your insurance company as soon as possible after the damage occurs
- File your claim within 24 hours if at all possible
- Document everything before making temporary repairs
- Keep meticulous records of all communications
Submitting Poor Documentation and Evidence
This is where most homeowners need property insurance claims assistance.
The truth is: The insurance company does not want to pay your claim. They will look for any excuse to deny your claim or reduce your payout. Weak documentation is their biggest opportunity to do this.
Homeowners lose thousands of dollars every year because:
- They fail to take photos of damage before cleanup
- They throw away damaged items without documentation
- They make repairs before adjuster’s inspection
- They don’t keep track of additional living expenses receipts
Solid documentation requires:
- Photos from different angles showing entire extent of damage
- Videos of damaged areas
- A written inventory of damaged personal property
- Receipts for all emergency repairs and additional living expenses
The national average property damage claim payout is $15,747, so proper documentation can literally mean thousands of dollars for you.
Making Permanent Repairs Before Inspection
One of the quickest ways to decrease your claim payout?
Make permanent repairs before the insurance adjuster inspects the damage.
No one wants to live with storm damage or water damage, but don’t make permanent repairs until after the adjuster has completed their inspection.
Here’s the reason:
Your insurance company needs to see the original damage to assess the cause, extent, and coverage eligibility as well as reasonable repair costs. Permanent repairs before inspection destroy evidence of your claim.
Instead, do this:
- Only make emergency repairs to stop further damage
- Document all emergency repairs with photos and receipts
- Wait until adjuster’s inspection before making permanent repairs
- Get multiple estimates from licensed contractors
Accepting The First Settlement Offer
Here’s something insurance companies do not want you to know…
The first settlement offer is almost never the full amount you are entitled to.
Insurance adjusters are trained to settle claims for as little money as possible. The first offer is almost always a lowball amount just to see if you’ll take it without question.
Do this instead:
- Get independent repair estimates
- Review your policy coverage in detail
- Consider property insurance claims assistance
- Negotiate using actual replacement costs
Not Understanding Your Coverage Limits
All insurance policies have coverage limits. Maximum dollar amounts the company will pay for different types of losses.
Here’s the tricky part:
Many homeowners falsely assume their dwelling coverage automatically covers the full cost to repair or rebuild their home. This is not always true, especially if construction costs have risen sharply in your area.
Your policy may include coverage limits for:
- Dwelling structure
- Personal property
- Additional living expenses
- Special limits on jewelry, electronics, etc.
Failing To Mitigate Further Damage
Once property damage occurs, it is your legal duty to mitigate (prevent) additional damage.
This means:
- Covering damaged windows or roof
- Turning off water to prevent flooding
- Removing belongings from affected areas
- Taking reasonable steps to protect property
Keep careful records of all mitigation actions:
- Photos of temporary repairs
- Receipts for materials and services
- Detailed descriptions of actions taken
Mitigation costs are typically covered under the additional living expenses portion of your policy.
Trying To Handle The Whole Claim Yourself
Property insurance claims are complex, especially for large losses.
The reality is:
- Insurance policies are legal documents with complex language
- Insurance adjusters are trained negotiators
- You are not experienced in this process
- Insurance companies handle thousands of claims a year
Professional property insurance claims assistance levels the playing field with expert knowledge of policy language, experience in documentation and negotiation, and understanding of policyholder rights.
Blueprint For Success
Property insurance claims assistance is easy, as long as you avoid these common mistakes. Know your policy, act quickly, document everything, and hire professional help when needed. It’s better to be proactive than reactive. Don’t wait until you’re in the middle of damage to discover what your coverage is and what you need to do.
Remember, the insurance company has teams working to pay out as little as possible on your claim. Don’t put yourself at a disadvantage. Get the knowledge and support necessary to get the payout you deserve.