What Goes on Behind Closed Doors
Many homeowners get insurance policies to protect their homes against contingencies like natural disasters, fire outbreaks and burglary. They expect the insurance company will compensate them for losses when these incidents occur. However, this isn't as simple as it seems.
Insurance companies hire insurance adjusters to investigate the homeowners' claims and determine the compensation the homeowner will receive. However, because these adjusters are hired by the insurance company, they often use tactics to undervalue the damages and minimize payouts. This way, the insurance company makes more profits at the homeowners' expense.
This guide discusses ten home insurance claim adjuster secret tactics that every owner should know. With this knowledge, homeowners can avoid these manipulative tactics and receive the best possible settlement for their insurance claims.
1. Gaslighting
The first trick in the home insurance adjuster’s book is to make you responsible for the damage. They'll likely to try to investigate how you may be responsible for the damage or even make you think you have caused the damage. In property damage, the adjuster has either of these two intentions:
- To claim you failed to mitigate the damage.
- Prove that the damage does not correlate with the incident covered by the insurance.
To get the claimant to accept fault, the adjuster will ask the already vulnerable homeowner tricky questions that make them appear to be responsible for the damage. If the claimant admits fault, even partially, the insurer will pay far less for the damage. It's best to talk to the adjuster only when you are fully prepared to answer some of these tricky questions, and you can also consult an attorney to help you navigate this process.
2. Downplay Losses
Once the adjuster becomes aware that your claims are valid, the next tactic is to downplay your losses and minimize the payout on the claim. To force you to agree to this reduced payout, the adjuster might pressure you to accept the first offer. Please note that the first offer is usually low, so accepting it is settling for far less than you deserve. To avoid this, contact your attorney immediately.
3. Denial
If the adjuster cannot prove that you are responsible for the damage, another likely trick is the denial tactic. With these tactics, the adjuster suggests that the policy does not cover the damage in one of two ways:
- Outrightly deny legitimate claims.
- Suggest some loopholes in the policy documentation.
While it's ideal that homeowners read their policy carefully, they can consult their attorney if such situations arise. Another option is to appeal a denial; in this case, you will need a lawyer.
4. Unnecessary Documentation
Requesting documents, reports, receipts, bills and photos may be part of the insurance adjusters' responsibility to determine the validity of a claim. However, they will often stretch this responsibility to discourage you from pursuing the claim. By asking you to provide documentation that is unrelated to the claim, they can drastically slow down the investigation process and the approval of your claim. The goal of asking for such documentation requests is to reduce or disregard your claim.
It’s not uncommon to hear reports of homeowners asking for medical records after a fire breakout. While this has almost no correlation with the incident, the insurance adjuster will employ this tactic to frustrate your efforts to get a payout. This may force some homeowners to settle for a low payout or completely forgo their legitimate claims.
5. Delay Tactics
Insurance is often a provision against contingencies and other emergencies; the claimant is often in dire need of a quick fix or repair. The insurance claim adjuster knows this, and since they work on behalf of the insurance company, they'll take their time to drag the process as much as they can.
They will do this by not returning calls, or delay responding to your emails. Homeowners who need repairs immediately are likely to forgo their claims and find alternatives. Your best bet in these situations is to get an attorney who can defend you as a victim of bad faith.
6. Faux Deadlines
In a bid to get you to accept a cheaper settlement offer, an insurance adjuster may inform you that you have a limited time to accept the offer or you may forfeit your claims. This is nothing but a scare tactic. While you may think it’s better to get something than nothing, the adjuster is only tricking you to settle for far less than you deserve.
As a claimant, you have a right to negotiate your claims. A good attorney can help negotiate a better payment offer with the insurer.
7. Overly Friendly
An insurance adjuster is not your friend! Remember they were hired by the insurance company that will make a profit off your losses. They aren't on your side.
While the adjuster should treat you with respect, you should avoid befriending them. This is often a tactic to get you to divulge details that can be used against your claims. The adjuster gets bonuses for low settlements, hence their goal is to get you to settle for less in most cases.
8. Claims No Room for Negotiation
To get you to settle for the first offer or a low offer, the adjuster may claim “no room for negotiation.” This is another tactic to get you to give in to the insurer's settlement offer. You have to negotiate any offer and an attorney may help you plead your case in this regard.
9. Poor Replacements
The adjuster’s goal is to minimize the cost of the settlement. They may get you bad replacements of damaged items and materials. This is why homeowners must be involved in the entire replacement process. You can insist on a high-quality replacement as part of your claim.
10. Discourage you from Getting an Attorney
We can not overemphasize the importance of getting an attorney so you receive a fair settlement from an insurer. The insurance adjuster is well aware of this, so they'll likely discourage you from getting an attorney.
You have a right to an attorney and if you feel overwhelmed by the whole process, an attorney will help you navigate the challenges. Having an attorney is about the best thing you can do for yourself. A good attorney will help you recognize home insurance claim adjuster's secret tactics as bad faith behavior and get a fair settlement.
Leveling the Playing Field
With ample knowledge of all the home insurance claim adjuster secret tactics discussed in this guide, homeowners can protect themselves and receive maximum payouts. To further strengthen your claims, keep proper documentation of damages covered by the insurance policy.
You can also consult the services of an attorney if you are having difficulty with or want to sue your insurer. With the right attorney, you will get a fair hearing in court and an even fairer settlement.