Whenever policyholders negotiate their Hurricane Michael insurance claim with their respective insurer, the most common outcomes are either their claim will be denied, or the insurance company will offer an amount that is not enough to cover their total losses and damages. While it may seem like the insurance companies are trying to rip you off, those outcomes are common when a geographic area suffers from widespread damage, and are even truer with complex commercial claims to hotels and businesses where processes to replace or repair damage can become quite complicated. Some of the reasons why this happens are inside claim adjusters who have never bothered to check the claim personally yet proceeds to deny certain parts of it, out-of-state adjusters who are not accustomed to local market, and overworked adjusters who overlooked certain damages and forgot to document everything.
When there’s an increase in demand for building materials, construction workers, and roofers, the associated costs also increase. A supply and demand effect such as this will definitely have an impact on those who suffered from damages for quite some time.
For property owners, an equally important cost-related issue is the vast difference between the prices quoted from local contractors and the claim adjuster’s computer-driven estimating system, in which the former’s total costs are much higher than what the latter says. Policyholders must be aware of this. It’s important to remember to never accept a low offer from their insurer or hire the services of an inferior contractor. Also, always make sure that fair market pricing is what’s used to price your insurance claim, not the computer estimating programs that are not in sync with actual marketing pricing.
There are some insurance companies today that have managed their own repair work or opted to use vendor programs where they can negotiate discounts for all repair jobs. While both strategies are good for the insurance company and the contractor, it’s not in the best interest of the policyholder. There should be no shortcuts in your insurance contract and everything must be done by the insurance company to ensure that you are made whole and that your property is restored back to its normal condition. If you want what’s best for you, get independent quotes and ensure that you’re comfortable with the quality of the materials and workmanship.
Additionally, we disapprove it when policyholders sign their claim monies over to a certain contractor with an assignment of benefit clause in their contract. To guarantee a smooth-sailing experience with your insurance claim and recovery, ensure that both the insurance company’s adjuster and your contractor are in complete agreement with every reconstruction plan and have all costs and agreements in writing. A “claim file” should be set-up with all of the important building damage estimates, correspondence letters, personal property losses, business property damage, and emails fully documented. Doing this ensures that your insurance claim will be managed efficiently. It will also be most helpful when the catastrophe adjuster goes back home and a new adjust gets assigned to you, a phenomenon which commonly occurs in widespread damage areas.
Whether you do not know the limits to what you should be entitled to or you do not understand a single aspect of your insurance policy, you can always go against the claim offer by hiring a public adjuster. There are many licensed public adjusters out there who offer free claim reviews, including the ones at our company.
For all of your questions related to your Hurricane Michael insurance claim, you can always talk to our insurance claim experts.