The Importance of Being Proactive in Insurance Claims

When it comes to property damage claims, most property owners expect that their insurance policy will provide coverage and trust that their insurance company will conduct a fair and reasonable investigation of their claim.  Unfortunately, the claim process can be complex, and policyholders unintentionally hurt their claim by failing to be proactive by communicating with or following up with their insurance company.  Such oversights can result in a lower recovery or even worse, a complete denial of your claim. If you have suffered a significant loss or catastrophe, you need to be proactive. If you are unsure what to do, contact an insurance recovery lawyer for help.

Claim Delays Can Result in Denials

Your insurance policy requires you to promptly report any losses to your insurance company.  Sometimes this is defined in your policy and sometimes it is not.  The reason for this is twofold:

1. The damage to the property may get worse and become more expensive to repair over time; and
2. The cause of the damage and the extent of the loss may be more difficult to determine after a significant amount of time has passed.

As a result, your policy gives your insurance company the right to deny your claim, even if it is a covered loss, if you do not report the loss promptly to your agent or insurance company.  While these denials are often self-serving and can be challenged, this can lead to additional delays and anxiety. As a result, we recommend that you report the loss to your insurance company as soon as possible.

Delays May Lead to Additional Damages

With only a handful of exceptions, whatever damage you have suffered to your business should be mitigated promptly.  This means making the necessary temporary repairs to prevent the damage from getting worse. This is particularly true if your roof has been compromised or if you have experienced flooding. Taking prompt action to clean up and protect the property from the elements is a policyholder’s duty under their insurance policy and will limit the extent of the damage to your property.

Businesses have additional concerns when extensive property damage disrupts their operations. Damage to your stock, retail space, or manufacturing areas can compromise your business’s ability to conduct fundamental operations and may result in an immediate loss of income. Timely resolution of your insurance claim can minimize the disruption to your business and the loss of revenue.

It’s Not What You Know; It’s What You Can Prove

The policyholder ultimately has the burden to prove the loss is covered under the policy.  Your insurance company isn’t going to simply take your word for it. They will require extensive evidence that demonstrates the cause of the damage, the extent of the damage, what repairs are necessary, and what those repair costs will be. In fact, they will send an adjuster to gather this documentation on behalf of the insurance company. As a result, the sooner you make your claim, the sooner the adjuster will be on-site to survey the damage.

It is essential, however, to understand that all adjusters, even those with “independent” in their job title, work for the insurance companies. As a result, the adjuster may be incentivized to minimize the amount to be paid on claims by underestimating the scope of damage and/or the repair cost. To ensure you receive the compensation you deserve, you should compile your own accurate documentation.  For example, you should:

• Take extensive photographs and/or videos of the damage to your property immediately following the loss;
• Keep copies of any receipts for expenses you incur as a result of the loss;
• Document any financial losses you suffer as a result of the loss; and
• Keep copies of any estimates, reports, and correspondence that you receive.

We know how challenging it can be to document your claim when your life or business has been turned upside down. If you don’t know what to do next or if you question whether your insurance company is being fair, contact an insurance recovery lawyer as soon as possible.

What To Do if My Insurance Company Is Not Taking Action?

Short delays in processing claims are not unusual, but when an insurance company unreasonably adjusts, delays or denies claims, this may be considered bad faith.  In these circumstances most states allow the policyholder to recover additional damages and attorney’s fees.  By being proactive in the claims process, you may help prove that your insurance company engaged in bad faith.  These claims are complex and almost impossible for policyholders to pursue without the assistance of an attorney.  If your insurance company appears to be dragging its feet, or is not treating you fairly during the claims process, we encourage you to reach out to an insurance recovery lawyer.

Contact Pearson Legal, P.C. for Proactive Help with Your Insurance Claim

If you face a significant property loss and feel overwhelmed, Pearson Legal, P.C. can help you navigate the insurance claim process. Send us an email or give us a call to schedule a free consultation.