Q. I am not satisfied with my insurance company’s adjustment of my property damage claim?

A. Contact a law firm. Most firms will have a team of experts in place to evaluate your damaged property and create an independent adjustment of your claim, make a demand for the correct damage amount, and ultimately, if need be, sue the insurance carrier to get you what you deserve.

Q. I made a claim with my insurance company and have received payment on the damages estimated by their adjuster. I found additional damage that was not included in the original claim. Can I ask the insurance company to take another look at the damage to my home or business?

A. Yes. It is not too late. You, as the insured, should not settle on an amount of money that you think will not be adequate to repair your damaged property. You have the right to request an additional inspection and/or hire an attorney and/or a public adjuster to best assist you in evaluating your damage and presenting your claim to the insurer.

Q. What kinds of professionals/experts typically get involved in evaluating a property damage insurance claim?

A. Attorneys, public adjusters, repair and building contractors, engineers, accountants, and specialty contractors such as landscape contractors/arborists. Typically, the first professional to contact would be the attorney because they should have the team of experts necessary to evaluate every aspect of your claim.

Q. The insurance company is paying the claim according to its "pricing guidelines." The guidelines are out of date and/or the prices do not reflect the true prices in my region. Because of this, the money they are offering is not enough to replace or repair my home back to how it was prior to my claim—what can I do?

A. It is important for you to get your own quotes through real life sources including building contractors, vendors/stores, the Internet, catalogs, appraisals, etc. Provide copies of contractor’s estimates, catalogue pages, web pages, receipts, etc. to your insurer for your pricing and make your claim. Be prepared to hold your ground as they are supposed to start with a true Replacement Cost in their calculations. Another direction to take would be to hire an attorney or public adjuster. These professionals have the most up-to-date software specifying current pricing for labor and materials in your immediate area to perform the necessary work. Typically, their estimates will include items that you missed in your damage analysis, therefore, increasing the amount of money demanded from the insurance carrier.

Q. My insurance company is refusing to pay anything up front for my contractor's overhead and profit. I don't have the cash to advance this item, and he won't get started without it, so I'm stuck.

A. Get the insurer to confirm in writing that they will pay for contractor’s overhead and profit once the work is complete – that should satisfy your contractor enough to get started. If not, you might start shopping for a new contractor. If your insurer refuses to pay a fair amount for overhead and profit even after the work is done, consult with a local lawyer who is experienced in handling property damage insurance matters.

Q. My insurance company keeps reducing what they're going to pay by "depreciating" items in my claim; what can I do?

A. The insurer’s independent adjuster should be able to show you depreciation tables to substantiate the depreciation that is deducted from your claim. Depreciation is also negotiable. Many times you will be able to negotiate for fair depreciation amounts. If you have a replacement cost policy, you should be able to collect the full amount of the replacement cost once you make the repair or replacement. Make sure to keep and submit all receipts and invoices to your insurer to collect the full amount of depreciation. Insurers almost always apply depreciation to deduct from amounts they pay on your claim. Be sure to review your policy to see what items may be depreciated and what items are excluded. Generally, you may be able to recoup what was depreciated if you have a "Replacement Cost" policy. If you have an Actual Cash Value ("ACV") policy you cannot. Insurers will apply depreciation to both real property items and personal property (contents). For items such as antiques, collectibles, etc., the market value of each item should be paid without deducting any depreciation.

Q. The insurance company is pressuring me to accept a settlement but I think it may be low. What can I do?

A. Make your own claim and if you know you’re right stand firm and argue your case. Hire your own experts, such as, attorneys, public adjusters, engineers, etc. Settling an insurance claim fairly almost always requires strong negotiation and a willingness to go nose to nose with the insurer. Having experts on your side can help tremendously.

Q. If I hire a professional to help me negotiate a fair claim settlement, won't their fee come out of the money I need to rebuild/replace what was damaged and/or destroyed?

A. In many cases where the insurance company has acted in bad faith in evaluating and paying your claim many states’ consumer and insurance laws provide for the insurance carrier to pay your penalties such as paying your attorney fees, pre-judgment interest, and in some cases, punitive damages are assessed. To find out what the law is in your area, contact a competent attorney that deals in “Bad Faith” insurance law to assess your claim and evaluate the actions of your insurance carrier.