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Home insurance is a safety net we rely on to protect our homes and possessions from unforeseen events. However, when the unexpected happens, and a claim is denied, homeowners can find themselves in a state of frustration and confusion. What many policyholders don't realize is that there are crucial aspects of the claims process that insurance companies may not be eager to disclose. In this comprehensive blog post, we will delve into the hidden truths and tactics that insurance companies might employ after denying a home insurance claim.
The Claims Process: A Complex Web of Terms and Conditions
Insurance policies are notorious for their intricate language and numerous terms and conditions. Most policyholders don't thoroughly read through these documents until they need to file a claim. At the Voss Law Firm we review policies and over the years have learned that just the length of the policy can be daunting for most individuals with many falling between the 60 and 100 page range and we won’t get into fonts and sizes. Insurance companies often capitalize on this lack of understanding during the claims process.
What they don't want you to know:
- Understanding the Policy: Insurance companies may not emphasize the importance of thoroughly understanding your policy. When a claim is denied, they might assert that the damage or incident isn't covered by the terms outlined in the policy. However, it's crucial for homeowners to familiarize themselves with the details of their coverage to challenge such denials effectively.
The Art of Depreciation: Diminishing Your Claim Value
When assessing a claim, insurance companies frequently employ depreciation to reduce the payout. This is a standard practice where the value of an item is decreased over time due to wear and tear.
What they don't want you to know:
- Challenging Depreciation: Homeowners often accept depreciated values without questioning them. However, it's essential to know that some items may not depreciate as quickly as the insurance company suggests. Seeking professional opinions and documentation on the actual value of your possessions can be pivotal in contesting the offered settlement. Some of your higher value items might need a different policy or higher coverage, this is where knowing you policy is paramount.
Undervaluing Property Damage: The Fine Line Between Repair and Replacement
After a claim is filed, insurance companies may undervalue property damage by opting for repair instead of replacement, even when replacement is more appropriate.
What they don't want you to know:
- Full Replacement Cost: Many policies offer coverage for the full replacement cost of damaged items, but insurance companies might not readily inform policyholders of this. They may initially provide estimates based on repair costs, which can be significantly lower. Homeowners should be proactive in pushing for the full replacement cost they are entitled to under their policy. Many times this goes beyond just the item you are calling about, think about a roof that is damaged due to a hail storm. You may of called a roofer, but what about the water damage that got into your sheet rock and stained your collection of records and shorted your record player?
The Power of Documentation: Supporting Your Claim
One of the critical aspects insurance companies might not explicitly highlight is the importance of documentation in the claims process.
What they don't want you to know:
- Thorough Documentation: Insurance companies may not emphasize the need for detailed documentation of the damage. Homeowners should document everything, from the initial incident to the aftermath, through photographs, videos, and written descriptions. This comprehensive documentation can serve as powerful evidence to support your claim in case of a dispute. You should keep an updated list of your valuables with your important documents. Click here to read about how to keep you important documents safe.
The Waiting Game: Delay Tactics and Their Impact
Insurance companies are known for employing delay tactics during the claims process. They may take an extended period to respond to communications, request additional documentation, or schedule inspections.
What they don't want you to know:
- Timely Responses: While insurance companies may not explicitly inform policyholders, timely responses are crucial. Delays can lead to additional damages and expenses, and in some cases, the statute of limitations for filing a lawsuit could expire. Homeowners should persistently follow up and keep detailed records of all communications to counteract these delay tactics. If you feel your are getting the “Run-A-Round” do not delay and contact Us, immediately. The insurance company my be in violation of their own policy and procedures.
The Appeal Process: Exercising Your Right to Challenge Denials
Many homeowners are unaware of their right to appeal a denied claim. Insurance companies may not readily disclose this information, hoping that policyholders will accept the denial and move on. There are statue of limitations on when you file against them for an improper denial.
What they don't want you to know:
- Appealing Denials: If your claim is denied, you have the right to appeal the decision. Insurance companies may not be transparent about the appeal process, but it's a crucial step for disputing an unfavorable decision. Be prepared to provide additional evidence and arguments to support your case during the appeal. If you have read this far, don’t delay and call us now.
Insurance Lawyers and Public Adjusters: Leveling the Playing Field
Facing an insurance company alone can be an overwhelming experience. What they don't want you to know is that hiring a The Voss Law Firm or a public adjuster can significantly enhance your chances of a favorable outcome. We can file lawsuits whereas adjusters cannot.
What they don't want you to know:
- Professional Advocacy: You want a professionals who work on behalf of you, the policyholder, not the insurance company. We have the expertise to navigate the complex claims process, assess damages accurately, and negotiate on your behalf. While insurance companies may not openly endorse the use of Law Firms or public adjusters, policyholders should consider this option, especially when faced with a denied claim. Read more about what the insurance adjuster does here. Many times
In conclusion, navigating the aftermath of a denied home insurance claim can be a challenging and frustrating experience. Insurance companies, in their quest to minimize payouts, may not be forthcoming about crucial aspects of the claims process. Understanding the intricacies of your policy, challenging depreciation, advocating for the full replacement cost, documenting damages thoroughly, and exercising your right to appeal are essential steps in ensuring a fair and just outcome.
Homeowners should be aware of their rights, stay vigilant throughout the claims process, and, when necessary, seek professional assistance to level the playing field. By unveiling these hidden truths, we empower homeowners to become proactive advocates for their rights and financial well-being in the face of insurance claim denials.
At the Voss Law Firm we strive to help you get back to normal as fast as possible after an insurance denial or “low ball” offer, even if the insurance company is delaying.
If you feel you have been unfairly treated by your insurance company, please call (888) 296-1986, input your information for a Free Claim Review or chat with us today.
