If you submit a claim to your homeowners insurance company for a covered loss, the insurer will review the information and offer you a settlement. If you think the amount you have been offered is lower than it should be, there are several steps you can take.
Review Your Claim, the Offer and Your Policy
Look over the claim and supporting documentation that you submitted. Read the letter that accompanied the settlement offer and check the relevant sections of your insurance policy.Â
If any portion of your claim was denied outright, compare the reason given to the language in your policy. It’s possible that you misunderstood your coverage, the adjuster made a mistake, or you and the insurance company interpreted the policy language and the circumstances surrounding the loss in different ways. It’s also possible that you didn’t explain something clearly or that the photos or videos you sent the insurance company didn’t accurately reflect the seriousness of the damage.Â
Provide Additional Information
If your claim included insufficient information, you can submit more photos, videos, or other documentation. The insurer might agree to have the adjuster who reviewed your claim take a second look and reconsider the settlement amount in light of the new information, or the insurance company might agree to have a different adjuster review your claim. The insurer might then decide to offer you a larger settlement.
Get an Appraisal
If the insurance company refuses to reconsider your settlement, or if the insurer conducts a second review but still doesn’t offer you an amount that you consider fair, you can hire an independent appraiser or a public adjuster. That individual will review the facts and calculate how much repairs will cost.Â
An independent appraisal that’s higher than the insurance company’s offer can help you in your effort to negotiate a larger settlement. Submit information on the appraisal to the insurer and ask to have your claim reviewed.Â
If the appraisal is in line with the insurance company’s offer, it will confirm that the proposed settlement is reasonable. In that case, it will be a good idea to accept the offer.
An appraisal will assess the cost of repairs, but it won’t address the issue of whether or not a loss is covered under your policy. If the damage was caused by an excluded peril, getting an independent appraisal won’t help you.
Seek Assistance from the Insurance Department
If you have tried all these avenues and you still believe that the insurance company’s offer is unreasonably low, you can contact your state’s insurance department and file a complaint. The insurance department will investigate your claim, contact the insurer, and attempt to help you reach an agreement that both sides consider fair.Â
Take Notes
When dealing with the insurance company, you may speak with several individuals in different departments. Keep detailed records of all conversations you have with insurance company representatives. If you mail documents to the insurer, send them certified so you will have confirmation of receipt.
