What Tactics Do Insurance Companies Try To Use To Undervalue Or Deny Property Damage Claims?

Insurance companies are notorious for employing various tactics to undervalue or deny property damage claims. They often resort to hiring third-party adjusters and engineers, even paying individuals to support their claim denials. The most commonly observed tactic can be succinctly described as “Delay, deny, defend.” Insurers aim to prolong the coverage determination process as much as possible, deny claims based on vague and overly broad coverage exclusions, and engage in lawyer-driven strategies that inundate the insured with paperwork, slowing down the entire process. It is astounding to witness the extent to which insurance companies go against the law, constantly surprising us with their wrongful practices.

What Is The 25% Rule?

The 25% rule, as stated in the Florida Building Code, plays a crucial role in assessing roof damage. If 25% or more of a roof requires repair, the entire roof should be replaced. However, insurance companies often attempt to downplay the extent of damage and suggest minor fixes like replacing a few shingles. Such proposals typically result in low estimates that fall below the policy deductible. In reality, a significant portion of the roof often needs repair, necessitating a permit to proceed with the job. Furthermore, repairs must conform to the aesthetic standards of the undamaged property. If it is not possible to achieve a seamless match, a full roof replacement is warranted.

Do I Need A Public Adjuster?

Public adjusters can be invaluable when it comes to resolving property damage claims. However, Florida’s statute 627.428 grants home and building owners the right to legal representation, which is often available at no cost or significantly lower fees than those charged by public adjusters. Engaging an attorney from a firm like Payne Law can be advantageous, as they can handle the case pre-suit for a smaller percentage. In the event that litigation becomes necessary, recovery would be governed by statute 627.428, with the insurance carrier directly responsible for covering attorney’s fees and costs. This arrangement ensures that the homeowner’s compensation remains unaffected.

Can My Carrier Drop Me If I File A Claim?

Insurance carriers possess the authority to drop clients or cancel policies at their discretion. However, state statutes protect claimants from being penalized solely due to a recently filed claim. While carriers can terminate policies for various reasons, dropping a client in retaliation for filing a claim may give rise to a potential bad faith claim against the carrier. It is crucial to document any evidence supporting the notion of retaliatory actions by the insurance company.

Will Filing A Claim Make My Rates Go Up?

Property owners in Florida are all too familiar with the continuous rise in insurance rates. While carriers are not allowed to raise rates explicitly because of a filed claim, they still retain the ability to increase rates for other reasons. As a consumer, you always have the right to explore different insurance carriers and find a new policy that offers competitive rates. Filing a claim may or may not impact your rates directly. However, a successful claim, such as a roof repair, has the potential to positively affect your rates by improving the overall condition of your property.