What does property insurance cover?

Property insurance typically covers damage to or loss of property due to events like water damage, hurricanes, tornadoes, fire, theft, vandalism, and other natural disasters. It can also provide liability coverage if someone is injured on the property. Make sure to review your policy for specific details on what is covered.

Filing a property insurance claim can be a pivotal moment for homeowners and property owners alike. It’s the process you engage in to recover from unexpected damage or loss, relying on the safety net you’ve invested in through insurance premiums. However, this process isn’t always straightforward. There are common pitfalls that can complicate your path to receiving the compensation you deserve. Understanding these pitfalls and knowing how to avoid them is crucial. Here, we outline the top 10 pitfalls in filing property insurance claims and offer expert advice on how to navigate these challenges.

1. Not Understanding Your Policy with your Property Insurance Company

Pitfall: Many property owners don’t fully understand the coverage details of their insurance policy until they need to file a claim. This lack of understanding can lead to surprises about what is and isn’t covered.

Avoidance Strategy: Review your insurance policy regularly. Pay special attention to exclusions, limits, and the declarations page, which outlines your coverage in detail. If anything is unclear, don’t hesitate to contact your insurance agent for clarification.

2. Delay in Filing the Claim with your Property Insurance Company

Pitfall: Waiting too long to file a claim can be detrimental. Insurance policies often have specific time frames within which you must report damage.

Avoidance Strategy: Act promptly. As soon as you discover damage, document it and report it to your insurance company. Keeping a log of communication can also be helpful if there are any disputes about timelines.

3. Insufficient Documentation Provided to Your Property Insurance Company

Pitfall: Failing to thoroughly document the damage and losses can weaken your claim. Insurers require detailed evidence to process claims.

Avoidance Strategy: Take extensive photos and videos of the damage from multiple angles. Keep a detailed inventory of damaged or lost items, including their value and any receipts for proof of purchase.

4. Overlooking Mitigation Requirements

Pitfall: Policyholders are often required to take reasonable steps to mitigate further damage after an initial incident. Failure to do so can result in reduced compensation.

Avoidance Strategy: Protect your property from further damage by making temporary repairs (if safe to do so) and keeping receipts of any expenses incurred. Inform your insurer of these actions.

5. Providing Inaccurate Information to your Property Insurance Company

Pitfall: Mistakes or inaccuracies in your claim, whether unintentional or not, can lead to claim denial or accusations of insurance fraud.

Avoidance Strategy: Ensure all information provided in your claim is accurate and truthful. Double-check details before submission and correct any errors immediately upon discovery.

6. Accepting the First Settlement Offer of your Property Insurance Company

Pitfall: The first settlement offer from an insurance company may not fully cover your damages or losses. Accepting it without question can leave you undercompensated.

Avoidance Strategy: Review the settlement offer carefully. If it doesn’t cover your losses, prepare to negotiate with your insurer. Consider hiring a public adjuster or attorney if the discrepancy is significant.

7. Handling Complex Claims Alone with a Property Insurance Claim Attorney

Pitfall: Complex claims can be challenging to navigate without professional help, leading to potential underpayment or denial.

Avoidance Strategy: For complicated or high-value claims, consider consulting with a public adjuster or a property insurance lawyer. Their expertise can be invaluable in navigating the claims process.

8. Not Appealing Denials to your Property Insurance Company

Pitfall: Accepting a claim denial without question. Policyholders may not realize they have the right to appeal a denied claim.

Avoidance Strategy: If your claim is denied, review the insurer’s reasoning. If you believe the denial is unjustified, file an appeal. Documentation and professional advice can be crucial here.

9. Ignoring Policy Updates from your Property Insurance Company

Pitfall: Failing to update your insurance policy to reflect new acquisitions or improvements can result in inadequate coverage.

Avoidance Strategy: Regularly review your policy with your agent, especially after making significant purchases or upgrades to your property, to ensure your coverage meets your current needs.

10. Not Understanding Replacement Cost vs. Actual Cash Value of your Insurance Policy

Pitfall: Confusion about the basis of claims settlement (replacement cost versus actual cash value) can lead to unexpected financial shortfalls.

Avoidance Strategy: Understand which valuation method your policy uses and how it impacts your claim. Consider purchasing additional coverage if necessary to meet your needs.

About Lacey Lyons Rezanka

At Lacey Lyons Rezanka, we understand the complexities and challenges of navigating property insurance claims. Our experienced legal team is committed to providing clear, comprehensive guidance and representation to ensure you receive fair treatment and compensation from insurance companies. Our client-centered approach puts your needs and interests first, offering personalized legal solutions tailored to your specific situation.

Call to Action

If you’re facing difficulties with a property insurance claim or simply seeking advice on how to protect your interests, we’re here to help. Contact Lacey Lyons Rezanka today to schedule a consultation. Let our expertise in property insurance law work for you, ensuring you avoid common pitfalls and maximize your claim’s success. Together, we can secure the compensation you deserve and help you move forward from loss or damage with confidence and peace of mind.