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5 tactics that insurance providers use to minimize payouts

| Mar 5, 2021 | Property Damage Insurance Claims |

When you want to make an insurance claim, it’s because you’re dealing with a loss. Maybe your home has been damaged, or perhaps your business has water damage from a recent storm. Whatever that issue is, it’s important for you to know what to expect during the claims process. It’s possible that you could be working against an insurance agent who doesn’t have your best interests in mind.

Insurance companies use several tactics to try to minimize payouts. Some of these include:

  • Delaying a claim decision until the statute of limitations ends
  • Claiming that your insurance policy doesn’t cover the damages
  • Explaining that you don’t need an attorney
  • Offering a quick settlement to attempt to limit their liability
  • Asking you to give a statement on the record

These five tactics can cause problems for property owners if they’re not cautious. Any one of these could impact how much money you’re able to receive after your claim.

Delaying a claim decision

When an insurance company delays a judgment, there is a possibility that the statute of limitations could run out. If that happens, your right to compensation may be limited.

Claiming your policy doesn’t cover it

Some insurers will try to say that certain damages aren’t covered under your policy, even though they are. Keep your policy on hand, so you can point out the coverage that you have and how it should include this damage.

Saying you don’t need an attorney

Insurers who say that you don’t need an attorney are incorrect. Your attorney knows how to negotiate and handle claims, so they’re a good person to turn to when you want to avoid trouble.

Offering a settlement

Some insurance companies offer settlements early in hopes that you’ll sign off on the agreement without knowing the true value of your claim.

Asking for a statement

Recorded statements could be tricky and result in you saying something that hurt your claim. Don’t give a recorded statement without legal support.

These tactics aren’t fair, but they are used against home and business owners all the time. Insurance companies want to save money, but it is your right as a policy holder to hold them accountable.