What To Do If Your Insurance Claim Is Being Underpaid

Home, business, and property insurance exist to give you peace of mind. In exchange for a monthly premium, insurance “protects” you from having to pay out of pocket for unplanned events like a fire, flood or severe storm. And you would never expect your insurance company to deny or underpaid your claim since you pay them money for coverage, right? 

You expect your insurance company to follow through on their end of the bargain should you ever need to use your coverage. You expect them to pay and settle your claim quickly so you can recover from a loss. You probably also expect them to be thorough, diligent, and fair. 

But what happens when they are not? 

Property damage repairs are almost always more complicated than they first appear to be. Most people are NOT familiar with the insurance claim process. It may seem easy in the beginning, but months in, it can feel like a maze with no end in sight. Without the experience and knowledge needed to adjust a claim, policyholders often accept a lower claim payment than what is actually owed to them. Being given a deal for less than what it’s worth is the definition of underpaid. 

Even if your insurance company has your best interests in mind, mistakes are more common than you might think. For example, insurance adjusters are often required to visit multiple properties in a single day. If they are low on time, they could rush the inspection and miss critical items. Or they may misinterpret your insurance policy and deny coverage that you deserve. If they are from a different state, insurance adjusters can easily miss required code upgrades. All of these things lead to one thing: an undervalued insurance claim. And an undervalued insurance claim leads to an underpaid claim. This means you will likely have to pay out of pocket for repairs to bring the property back to its original condition. 

The good news is, if you are in this situation, you still have options and do not have to accept their initial offer. You do have the right to have the claim reevaluated. Here are our top tips to making sure you get what you are justly owed:

1. Review Your Policy

If you didn’t read your insurance policy thoroughly before filing a claim, now’s the time. Make sure you know and understand what is covered under your policy.. A helpful tool is to request a free claim review by an expert, like a Public Adjuster. They will be able to help explain coverages to you in plain English and discuss what might be missed in the initial offer from your insurance company. 

2. Request A Reinspection

As mentioned earlier, mistakes are not uncommon. Reviewing the estimate for repairs will help you determine if damaged items were missed or unaccounted for. If there are missing items, requesting a reinspection or a reevaluation of the damage would be in your best interest. 

3. Review Your Claim Documentation

Property damage claims are denied/undervalued for lack of documentation. Unfortunately, you cannot rely on your insurance company to adequately document all aspects of your claim. It is essential to take your own photos, create your own asset inventory, keep receipts and records of any necessary repairs, and thoroughly review all claim documents. If you feel your claim is not being paid fairly, go back and review all aspects of documentation and see if anything is missing. 

4. Seek Expert Help

You are never alone in the insurance claim process, and there are people who can help! Public Adjusters are one type of expert you can work with to ensure your insurance claim is being paid fairly. The best part of using a Public Adjuster is they will do steps 1-3 for you and act on your behalf no matter where you are in the claim process. 

At Alpha Public Adjusters, we know that filing an insurance claim can be stressful and time-consuming. We are proud to offer policyholders with expert level support, and guidance through complex insurance claims to reduce stress and help the process to recovery start sooner. Don’t accept an underpaid claim. Get in touch with us today to learn more and get a free claim review. 

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