4 Tips to Negotiate With Your Property Insurance Company
In the event of a disaster, such as a flood or fire, you’ll likely need to file an insurance claim. As policyholders go through the claims process, it’s important to remember that insurance companies are in business to make a profit.
They need to keep expenses as low as possible so they can offer cheaper monthly payments to attract new customers. As a result, they are not going to want to pay out more money to policyholders than they have to.
To ensure that you receive the full value of your claim, you’ll want to be prepared to negotiate with your property insurance company.
Here are 4 tips that will help you negotiate effectively:
1. Hire a Public Adjuster to Help You Determine Fair Value
The mind has a tendency to use the first number it hears as a reference point for what’s fair. It’s a cognitive bias known as the anchoring effect.
To avoid accepting a settlement that is much lower than what you deserve, you should hire a public adjuster. By connecting with them from the start, you can get a fair and accurate estimate from a professional.
A public adjuster takes into account not only the details of your policy but also the details of the building construction, depreciation value, replacement costs and much more.
They will inspect the damages you’ve sustained to provide an expert opinion on a fair settlement. It’s beneficial to have a public adjuster do this because they will evaluate the damages with your best interest in mind. Public adjusters want to see you realize the full value of your claim!
Knowing the number and facts provided by your public adjuster will give you confidence as you negotiate with the insurance adjuster. Without hiring a public adjuster, you run the risk of trusting the insurance adjuster and accepting the payout as is.
Collaborate with public adjusters and avoid clinging to the first offer your insurance company provides.
2. Have the Adjuster Explain Why the Offer is Low
This will weed out any offers made that are being used as negotiating tactics.
If the insurance company is lowballing you, getting asked this question will prompt them to offer something more reasonable with documented reasoning.
If they have a case for the adjusted amount, you’ll at least understand why and be able to accept the payout value.
3. Take Legal Action, If Necessary
It’s not unheard of for insurance companies to intentionally ignore your calls or request paperwork that they do not actually need.
The goal is that by making you jump through hoops, eventually, you will get discouraged and give up on pursuing the claim.
Not all insurance companies use these tactics, but some will.
If you suspect that your insurance company is intentionally delaying servicing your claim (or blatantly lowballing your payout value), you should take legal action immediately.
An attorney can help your case get processed faster. In working with a public adjuster, your hired team can help rectify the situation and help get you a fair payout based on the contract terms.
4. Confirm Your Offer in Writing
There have been instances where policyholders claim that they came to an agreement with their insurance company, but the insurance company claims they made no such agreement.
To avoid a he-said-she-said dispute, always confirm the offer in writing once you’ve come to an agreement with your insurance company on the final payout.
Cleveland Public Adjusters Will Negotiate For You
One advantage of hiring Cleveland Public Adjusters is that we will negotiate with your insurance company for you. We handle claims from start to finish. We will file your claim, evaluate your loss, communicate directly with your insurance company, and we will advocate for you.
We even have teamed up with lawyers to make sure we fight for our clients to the fullest extent.
We have a track record of high-quality customer service and strong performance.
“Throughout this process, I have hired a lot of people, but none have been as worthwhile an investment as Cleveland Public Adjusters. Knowing I didn’t need to worry and that they would do everything possible in their power to help me was an amazing feeling.”
-Katie Robertson
Learn more about our services here!