DOs And Don'ts Of Filing A Property Damage Claim With Your Insurance Company -

The DOs and Don'ts of Filing A Property Damage Claim With Your Insurance Company

Without proper knowledge of how an insurance policy works, many policyholders have received a far lesser settlement claim than they should have. Knowing how a property insurance claim works is good to avoid falling victim to such or, worse, being denied a claim.

This article contains a detailed write-up on the things you should do and those you should not when filing for a property damage claim.

What is Property Damage Insurance?

Property damage insurance covers you for loss or damage to any property you own in cases where it is damaged or destroyed. This type of insurance was created to pay for repairing or replacing an insured property if it gets damaged in the future.

You can seek help with insurance settlement claims by getting a good expert, such as a public adjuster or an attorney.

Ready to find your dream home in Colorado?
Let us help you. Call or Text Kenna Real Estate Group at 303-955-4220 to get personalized assistance from our expert real estate agents. Find out what your home is worth in today's market.

Things Covered by Property Damage Insurance?

Property damage insurance covers damage or loss that could occur from a series of events. While the insurance coverage is dependent on the insurer, these events could include:

Fire damage
Hurricane damage
Vandalism
Leaking pipes
Earthquake or Storm
Explosion
Theft
Industrial accident

What is a Public Adjuster?

A public adjuster is an independent insurance professional whom an insurance policyholder pays to assist with filing or settling an insurance claim. Your insurance company can provide you with an adjuster at no charge, even without having any relationship with the company.

A public adjuster can only help with the settlement process but can only get you what you are entitled to per your insurance policy. If you are facing challenges in your insurance claim or have been denied claims, you should contact a qualified public adjuster to direct you on the process.

It would help if you considered the below factors when seeking to hire a public adjuster for an insurance claim:

Make sure the public adjuster is qualified enough and has good reviews. Also, they must be licensed in the state where you file a claim. For example, you should hire a Florida public adjuster if you live in Florida.
Stay away from public adjusters who behave weirdly. Do well to read your contract and ensure you understand it before signing it.
Be aware of the amount a public adjuster should charge, as some state insurance companies set a fixed percentage per disaster.

The DOs of Filing A Property Damage Claim

There are certain things you must do when filing a property damage claim. Below, these actions are discussed:

Inform Your Insurance Company Of a Damage As Soon As Possible

It would help to inform your insurance carrier when your property has incurred covered damage. However, having a qualified public adjuster or experienced property damage lawyer go through your policy before filing a property insurance claim is essential.

An experienced public adjuster or experienced property damage attorney can guide you through making your claim.

Have Substantial Evidence Regarding The Damages

Evidence is critical in seeking insurance claims that should not be ignored. It can help in getting the settlement you deserve. Every insurance company will want to know the extent of the damage and what was damaged.

You can list any damage to your house and personal property. Visual evidence, such as pictures or videos, is highly recommended. Ensure you keep all receipts of any extra living expenses incurred or emergency repairs.

Hire a Professional To Estimate The Damage

After you have filed your insurance claim, the insurance company will send over their claim adjuster to assess and document the damage. It would help if you got your independent estimate to avoid being cheated or denied the maximum compensation.

An insurance company may want to play smart with you if you need to know the extent of the damage. Hence, getting a qualified public adjuster is essential.

The Don'tsDon'ts Of Filing A Property Damage Claim With Your Insurance Company

The don'tsdon'ts of filing a property damage claim are very straightforward. However, if you are unaware of this, it can land you in big trouble, and you may lose your claim!

Avoid Fixing Damages Until The Insurance Company Has Inspected It

If your property has been damaged, taking the proper steps to ensure you receive a fair settlement from your insurance company is essential. While it may be tempting to begin repairs immediately, it's often best to inform your insurance company first and allow them to assess the damages and document the damage report.

By working with your insurance company, you can ensure you receive the full settlement you deserve. If you begin repairs before notifying your insurance company, you run the risk of receiving a lower settlement amount, which may not fully cover the cost of the damages.

Do Not Discard Any Damaged Property Until It Has Been Inspected

Every damaged property or item will be soundproof to give you a maximum claim. It is essential to keep any damaged property or evidence of the damage until the insurance company has completed its investigation. Disposing of damaged property prematurely may hinder the insurance company's ability to assess the extent of the damage and could impact your claim.

Don't Ignore Instructions from the Insurance Company

Follow all instructions provided by your insurance company during the claims process. This may include providing additional documentation, getting repair estimates, or meeting with insurance adjusters. Ignoring instructions may delay your claim or result in denial of coverage.

Don't Rely Solely on Verbal Communication

Communicating with your insurance company in writing and recording all communications, including emails, letters, and claim forms, is crucial. Avoid relying solely on verbal communication, which may lead to misunderstandings or misinterpretations.

Don't Admit Fault

Avoid admitting fault or making any assumptions about the cause of the property damage. Let the insurance company investigate and determine the cause of the damage. Admitting fault could impact your claim negatively and result in denial of coverage.

Types of Property Damage Claims

Suppose you have insured your property in the past. In that case, you do not have to worry about paying the total amount of property damage when a natural disaster, accident, negligence, or something similar causes it. With a property insurance cover, you can file a claim for residential, personal, commercial, and even motor vehicle damage should the need arise.

Below are the different types of property damage claims for which you can seek compensation.

Residential Property Damage Claims

Getting compensation for damaged residential property is quite simple, especially in cases of a natural disaster, like hurricane damage or fire. On the other hand, if the property damage resulted from intentional behavior or negligence, you may have to proceed to court to claim compensation.

Provided you have substantial proof, the court can issue you a good amount to repair the damaged property. Alternatively, you may be awarded the disparity in your home's market value before and immediately after the damage.

Commercial Property Damage Claims

Business insurance can be helpful because it protects you from various damages, including general liability. In business insurance, commercial property coverage is generally included. However, there are cases when the insurer may refuse to pay for the damages, especially if they are expensive.

In such cases, you should talk to an experienced insurance claim lawyer about restoring your commercial property to its pre-loss conditions. The lawyer will also let you know how much you can get as compensation based on your insurance policy.

Personal Property Damage Claims

Apart from the damage claims above, you can also file a claim for any damaged personal property that needs replacement.

It is important to note that you must gather photographic or video evidence of the damage before filing your claim. You should also leave the damaged property untouched until your insurance provider has inspected it, as this is in your best interest.

After that, you can hire a lawyer to help you settle your claim and help you get the best compensation possible.

Conclusion

In most situations, a property damage claim is between the owner and the insurance company. You can get the maximum compensation you deserve when you file a property damage claim, but it's also important to understand whether settlement money is taxable in your situation. Your insurance company can repair or replace it according to the agreement in your insurance policy.

If you find the whole process difficult, seek professional advice from qualified public adjusters. Pursuing a claim for a damaged property up to 6 years after the damage occurred is possible. You should note that, however, this law is subject to each state. Some states require the claimant to file the process within 3 years, while some are even higher.

Two Most Frequently Asked Questions

Does hurricane insurance cover flooding?

Although it is possible to experience flooding during a hurricane, most flood damage is not covered by a hurricane insurance policy.

Can I hire an adjuster from a public adjuster Company?

Yes, you can hire a public adjuster. Hiring a public adjuster from the state where you file a claim is recommended.