Top Reasons Why Insurance Companies Give Low Settlement Offers
When filing an insurance claim, everyone expects to get the best possible outcome. After all, insurance policies were created to help us during times of need. However, in some instances, insurance companies will try to offer a lower amount of money than what we deserve. It’s not uncommon to hear about people who received less than what they were supposed to, and this can lead to financial losses and stress. In this blog post, we will discuss the top reasons why insurance companies give low settlement offers and what you can do to avoid this from happening to you.
1. Lack of Evidence
Insurance companies will require a certain amount of evidence to validate your claim. If you fail to provide enough proof, the company will assume that your claim is not as severe as you claim it to be. This can lead to a low offer. For example, if you have a flood in your home, take numerous photos, videos, and keep detailed records of the damage. This can sway the insurance company in your favor.
2. Underestimated Losses
In some instances, insurance companies will underestimate the value of your loss. The company might miss a few items, or they might try to give you a lower offer than what you deserve. This can happen when the insurance adjuster is overworked, but it can also be intentional. To avoid this from happening, do your own research on the value of your losses. This can be done by going to a specialist or checking online.
3. Insurance Company’s Best Interest
Insurance companies are profit-driven and will try to settle claims for the least amount of money possible. This means that they will give low offers because it’s in their best interest to save money. To avoid this from happening, hire a public adjuster. They work for you, not the insurance company, and will negotiate a better settlement for you.
4. Policy Coverage Issues
Sometimes, the policyholder’s coverage will be an issue. This means that the policy might not cover certain losses, leading to low settlement offers. To avoid this from happening, review your policy thoroughly. If you’re unsure, consult with a public adjuster to make sure you understand all of the terms.
5. Delay in Filing a Claim
There are deadlines on when a claim can be filed, and if you don’t file your claim within the allotted time, you can miss out on certain benefits. To avoid this from happening, file your claim as soon as possible. Don’t wait until the last minute, or you might miss out on getting the compensation that you deserve.
Conclusion
As a policyholder, it's important to understand the top reasons why insurance companies give low settlement offers, so you can avoid them from happening to you. Lack of evidence, underestimated losses, the insurance company’s best interest, policy coverage issues, and delay in filing a claim are things to look out for. Don’t be afraid to hire a public adjuster, and make sure you understand all of the terms in your policy. At Five Star Claims Adjusting, we’re here to help you with all of your property claims in Central Florida. Contact us today to schedule a free inspection.
