August Newsletter 2024
Over the past 30 days, Farand Claim Consulting, Inc has engaged in conversations with over 60 professionals from various sectors of the insurance industry. Through these discussions, it became clear that many of them were unsure about the essential steps required to successfully settle an insurance claim. In response to the frequent requests for guidance, we've compiled a short list of top tips to help navigate the claim process more effectively and ensure you're well-prepared to achieve a fair settlement.
- Be pro-active in the claim process and keep good notes. Make sure you maintain a paper trail.
Stay actively involved throughout the claim process by keeping detailed records of every interaction with your insurance company. This includes documenting phone calls, emails, and any correspondence. A well-organized paper trail can be crucial if disputes arise or if you need to refer back to any specific details.
- Focus on calculating the total value of your damaged or destroyed property and understanding the maximum insurance benefits that are available to you. Take the time to accurately assess the full extent of your losses, including both the immediate damage and any long-term impacts. Understanding your policy limits and the coverage it provides ensures you claim the maximum benefits you're entitled to, helping you recover fully from your loss.
- Think of your insurance claim as a business negotiation—you’re dealing with a profit-oriented company and your goal is to restore your assets.
Approach your claim as you would a business deal, recognizing that the insurance company’s primary goal is to minimize payouts. Stay firm and professional, ensuring that your interests are fully represented so that you receive a fair settlement that accurately reflects your losses.
- Give your insurance company a chance to do the right thing, but don’t mistake a friendly representative for a friend and don’t be a pushover.
While it’s important to allow the insurance company to address your claim properly, remember that their representatives are trained to protect the company’s interests. Maintain a courteous but assertive stance, ensuring that you’re not swayed by friendliness or pressure to accept less than you deserve.
- Document and support your claim with proof, details, and estimates.
The strength of your claim lies in the evidence you provide. Gather and present detailed documentation, including photos, receipts, and professional estimates, to support your claim. This thoroughness can prevent delays and reduce the likelihood of disputes.
- Present clear requests in writing that explain what you need, when you need it, and why you’re entitled to it.
Clearly articulate your needs in written communication with the insurance company. Outline the specifics of your claim, including deadlines, and provide justification based on your policy terms. This clarity helps prevent misunderstandings and demonstrates that you know your rights.
- Don’t pad or exaggerate your claim.
Always remain honest in your claims, as inflating your losses or making false claims can lead to serious consequences, including denial of your entire claim or even legal action. Honesty ensures the process remains fair and your claim is more likely to be resolved smoothly.
- Don’t sign legal documents without consulting with a qualified attorney.
Before signing any documents related to your claim, seek advice from a qualified attorney who specializes in insurance law. This protects you from agreeing to terms that may not be in your best interest and ensures you fully understand any legal implications.
- Try to resolve problems informally but complain in writing. Go up the chain of command and/or use government agency help when necessary.
Start by attempting to resolve any disputes directly with your insurance company, but if that fails, escalate the issue in writing. If necessary, involve higher-ups or seek assistance from regulatory agencies, ensuring your concerns are formally documented and taken seriously.
- Get specialized professional help when you need it.
If your claim is complex or you encounter resistance from your insurer, consider hiring a public adjuster, attorney, or other experts. These professionals can provide the expertise and advocacy needed to navigate the claim process effectively, ensuring you receive the compensation you deserve.
- Bonus: Consider appraisal or litigation if a fair settlement cannot be reached. If you’ve exhausted all efforts to negotiate a fair settlement and are still facing an impasse, it may be time to consider the appraisal process or even litigation. Appraisal can provide a binding resolution to disputes over the amount of loss, while litigation might be necessary if there’s a legal disagreement regarding coverage or policy interpretation. Consulting with professionals can help determine the best course of action for your situation.
