If you have ever filed a claim through home insurance, you likely know just how frustrating the whole process can be. Whether from a pipe bursting, from fire damage, or just that one strong storm that caused mayhem on your roof, sometimes dealing with the insurance company can seem like trying to go uphill. But here is the thing: insurance companies are not always as forthcoming as you may wish. That is, at least in general, but more importantly when it comes to the underhanded tactics of home insurance claims adjusters.
I’m not here bad-mouthing insurance adjusters. Many are just doing their job, but at the same time, that job happened to be protecting the insurance company’s money. So understanding some tricks of the trade will put you in a much stronger position if you do happen to have to make a claim. It’s your home and worth fighting for, of course, for your piece of mind.
Who are the home insurance adjusters?
Before we get to the assorted strategies, first things first: just who, precisely, are these adjusters?
When you file a claim, your insurance company will dispatch an adjuster to inspect the damages and estimate the value of compensation that one attains. This report very often may set the significant determinant in your final pay. Keep in mind, however, the adjuster works for the insurance company, not for you. They get their mission to settle the claim with minimal money. This doesn’t mean they will deny everything you ask, but it does mean they will employ certain strategies to minimize the payout. This is where things get tricky.
Secret Tactic #1: Underestimating the Damage
The adjusters will also downplay the damages, often times saying, “The roof only has a small leak in it,” or “Your basement is not this bad.” But nobody knows your home like you. You have walked up and down those hallways hundreds of times, and you know how even the smallest damage could affect your home.
And when I initially spoke with the adjuster, he said that my wall cracks were from “normal settling.” But as I knew very well, something just didn’t seem right. Getting a second opinion out of a contractor, those came to be caused by structural damage from the storm. If I went by his word, I would have paid far more in repair costs than the insurance company would.
That means it is very important to document everything: take photos, videos, and make notes. If possible, be prepared to call in an independent contractor to assess damage before the adjuster so you have a second opinion if they try to downplay problems.
Secret Strategy #2: Rushing You to Settle
The adjuster may try to convince you to agree to a quick settlement. They will frequently couch it as getting money in your hands ASAP so that you can begin immediate repairs. This may be very tempting, but rushing to accept a settlement can hurt you more in the long run.
In many cases, it may not be clear how extensive the damage actually is. For example, water damage can produce mold many weeks later. If you settle too early, you may never receive compensation for damage that manifested afterwards.
When I filed a claim for storm damage, the adjuster wanted to close the case in one week. I hedged, and I’m glad I did: two weeks later we learned that the storm had also damaged some of the electrical wiring in the house that was not caught in the initial inspection. If I had settled right away, I would have been left with a hefty bill for repairs that should have been covered.
Secret Strategy #3: Using Complicated Language to Confuse You
Have you ever read through your insurance policy and thought to understand it, you required a law degree? You most certainly are not alone. The insurance companies make use of jargons in technical terms that even an average person can barely understand what is covered and what is not.
Adjusters can work this to their advantage. They may be throwing out big words, such as “exclusions” and “depreciation”, in order to make you think things that are not excluded actually are. Never be afraid to ask what they mean or to say it again in simple terms. You have the right to understand what your policy really covers.
I once had an adjuster tell me that my policy didn’t cover “gradual damage.” At the time, I didn’t know exactly what he meant, but after a little research, I came to realize it was actually just a catch-all term they threw out there to deny claims that involved actual damage from a specific incident.
Sneaky Tactic #4: Misrepresenting Your Coverage
Another trick adjusters use is to misrepresent your policy. They might tell you not to bother filing a claim for some damages because they are not covered when, in fact, they are. For instance, they may say the policy covers only the current value of your belongings-their depreciated value-when it as a matter of fact covers the cost of replacing them with new ones.
This can be especially challenging about personal property, like electronics or furniture. For instance, say you have an expensive TV that gets destroyed in a fire. The adjuster may inform you that you will be reimbursed for ‘its current value,’ which develops to be minuscule compared to the price range you can replace it with. Nevertheless, if your policy involves replacement cost coverage, then you would receive enough money to purchase a new TV of the same kind.
Always study your policy, and do not be afraid to disagree with the adjuster’s interpretation. If you do not understand your rights, consult an attorney or public adjuster.
Secret Tactic #5: Delaying the Process
It is no secret that insurance companies like to hold on to their money as long as possible. The longer it takes to settle a claim, the better. Adjusters will often delay returning your call, email, or request for status. They might request additional documentation or information, knowing full well it will take longer for you to procure what they are requesting.
This is the delaying tactic that becomes most frustrating when one would have his home repaired as soon as possible. And it is a waiting game, one in which the insurance companies know full well the longer one waits, the greater the likelihood he will accept a lower settlement in an attempt to try and move things along.
On one fire damage claim that I was handling, the adjuster only kept asking for more and more documentation for a few months after the initial inspection. There came a time when it seemed like they were procrastinating, and the stress of that was really exhausting. Finally, I involved a public adjuster who would take care of all the communications. Since then, things went really fast, and we could finally come up with a decent settlement.
Secret Strategy #6: Make a Low Initial Offer
The oldest tricks in the book include the low initial settlement offer base, in hopes you will take it without questioning. About which adjusters know is that many homeowners are champing at the bit to get their payment and start the repair process, normally offering a figure far lower than the actual value of your claim.
Keep in mind that the initial offer is just that-an offer. You have every right to negotiate. If the number seems low, don’t be afraid to back down. Get estimates from contractors, document all damage, and be prepared to prove why you think the offer should be higher.
I had a friend whose adjuster offered to pay $10,000 for repairs related to water damage from a burst pipe. It wasn’t until she obtained comparative estimates from various contractors that she realized her true cost of repairs was closer to $25,000. It was not that first offer she took, and after some back-and-forth, she got a much more reasonable payout.
Secret Strategy #7: Using Third Party Adjusters
It is not unusual for insurance companies to outsource their claims to independent adjusters, especially during periods when the claims filed are more than the numbers of adjusters on their payroll, such as after a natural disaster. Even independent adjusters have a reason for keeping the costs low since they want to maintain a good relationship with the insurer.
These freelance brokers may be relatively less experienced or unfamiliar with the minute details of your policy and hence award lower values to your claim. It is also prudent that the credentials of the adjuster be inquired into and whether he is an employee of the insurance company or an independent adjuster.
Always consider a second opinion and/or hiring your public adjuster, which can represent you if you think they may not be cutting it as fair or fine.
How to guard yourself against these tips.
Having identified the secret tips an insurance claims adjuster wants you to know, now focus on how to protect yourself. A bit of preparation and persistence is always a key to success in an insurance claim. Here are some steps:
- Document everything: Take close-up pictures and videos of the damage, and take note of every interaction you have with the adjuster. The more proof you can obtain, the better.
- Get a second opinion: Consider hiring an independent contractor or public adjuster to assess the damage before you allow the insurance company’s adjuster to arrive on the scene.
- Not settling too quickly: Give yourself a sufficient amount of time to consider all the damage and the probable costs of a settlement.
- Understand your policy: The first thing you want to do is read through your insurance policy. If there is something that you don’t understand, ask questions.
- Negotiate: Remember, the first offered amount is rarely the best. Never be afraid to back off and negotiate for what you perceive to be a fair settlement.
Knowing such tactics and being alert when the claims start is the better way for you to get what you deserve. Remember, he may work for the insurance company, but it’s your home, your future. Stay firm, stay informed, and don’t let these tactics get the best of you.
Final Thoughts (Home Insurance Claim Adjuster Secret Tactics)
Dealing with a home insurance claim is never fun, but understanding the home insurance claim adjuster secret tactics can give you the upper hand. The tricks up their sleeves run the gamut from downplaying damage to pressing for a quick settlement and even using confusing terminology-all in favor of the insurance company’s side. On the other hand, though, it is possible to go with ease through each step when one has knowledge about measures, documentation, and rights entitled to them.
Again, your house is one of your big investments, and it needs to be protected. You are not going to want to accept a less-than-deserved solution, and you shouldn’t let an adjuster get his way with you at the expense of your peace of mind.
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