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How recorded statements can lead to low settlements

On Behalf of | Nov 5, 2024 | Property Damage Insurance Claims |

Homeowners insurance policies can help pay to repair or rebuild a damaged property. They can also help people cover their expenses when they cannot stay at their primary residence. People may pay thousands of dollars per year for coverage with policy limits that allow them to rebuild their homes and afford alternate living arrangements during the repair construction process.

Unfortunately, many homeowners end up manipulated or pushed into accepting settlements that leave them struggling to cover necessary costs. A recorded statement can sometimes help an insurance company justify offering a low settlement.

What is a recorded statement?

Insurance investigators and adjusters sometimes ask policyholders and claimants to make an official statement related to their pending claim. Insurance adjusters may act friendly and supportive while simultaneously trying to find ways to limit coverage or deny valid claims.

They may ask people questions that implicate them as being partially at fault for property damage. For example, they may try to get homeowners to admit that they failed to secure the property or make repairs immediately after the incident. They could then claim that the delay led to secondary damage.

Other times, insurance adjusters may ask seemingly unrelated questions to try to prove that homeowners don’t need specific types of benefits. They might ask the same questions repeatedly in an attempt to confuse people and get them to contradict themselves. What people say during a recorded statement can ultimately factor into a company denying their claims or making a low settlement offer.

People have the right to support during claims

The higher the policy limits for a homeowners insurance policy are, the more likely they are to face aggressive claims mitigation attempts. People have the right to retain the assistance of a lawyer during their claims.

An attorney can review the policy documents and the record of the incident to help people know what they can realistically expect. They can assist with the completion of paperwork and can be present during all communications with the insurance company. A lawyer’s support when making a recorded statement could help a homeowner avoid common pitfalls and maximize the compensation that they receive.

Recognizing that recorded statements often benefit of insurance companies, not a homeowner making a claim, can help people approach the process with the right perspective. Those who understand their rights and who have support may have a better chance of getting the coverage they need to compensate them for their losses.