Dealing with a home insurance claim can be stressful enough without worrying about claim adjusters using sneaky tactics. Unfortunately, some adjusters do resort to underhanded methods in hopes of saving their insurance companies money.
As a policyholder, it is crucial you educate yourself on these secret claim denial tactics so you can protect your rights and get fully compensated for your loss.
Common Home Insurance Claim Adjuster Tactics
Based on data from groups like the Insurance Research Council, here are some of the most frequent dubious tactics adjusters deploy:
Lowballing the Initial Settlement Offer
In a study by the IRC, 20% of policyholders were dissatisfied with their final claim outcome. Offering an unreasonably low initial settlement is one way adjusters try to shortchange policyholders. They bet you will be eager to settle quickly and accept less than you deserve.
Delaying the Claims Process
Drawing out the claims handling process through repetitive paperwork requests, ignored calls and emails, and other stalling methods is another common approach. The goal is to frustrate policyholders into accepting lower settlements just to be done with the process.
Denying Claims on Technicalities
Insurance companies know their policies inside and out. Adjusters often scour the fine print to find reasons to deny claims – arguing the damage isn’t covered or the policyholder didn’t take preventative measures. About 10% of home insurance claims are denied, according to the Consumer Federation of America.
Pressuring the Policyholder to Admit Fault
If a policyholder admits they caused or contributed to the damage, the claim value decreases. Adjusters may pressure policyholders to admit fault through leading questions or implications of blame.
Tricking Policyholders into Recorded Statements
Recorded statements can come back to haunt policyholders later. Sneaky adjusters may falsely claim a recorded statement is required when in fact it is not.
How to Protect Yourself from Adjuster Tactics
Here are some tips on dealing with adjusters and getting fair claim compensation:
- Be prepared with documentation – Have your damage evidence ready including photos, repair estimates and receipts.
- Don’t rush into settlements – Take time to review any offer thoroughly before accepting.
- Consider legal help for claim disputes or unfair denials.
- Record communications with the adjuster for documentation.
- Know your policy rights – Understand what is covered and the claims process.
- Contact state regulators to report bad faith tactics.
Adjusters may not have your best interests in mind. But knowing their common tactics and asserting your rights can help ensure you get your due compensation.
