How to Deal with Insurance Adjusters
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When you file a claim, you'll have to work with an adjuster from your homeowners insurance company. They will evaluate your property, collect evidence on the extent of the damage and rule on your claim.
It's important to remember the adjuster doesn't advocate for you. They're paid to calculate the lowest possible compensation on your insurance company's behalf. You can prepare for the inspection by compiling an itemized list of your belongings, understanding your policy's exclusions, keeping meticulous notes of your meeting and using thoughtful language when describing your property loss.
Preparing for the insurance adjuster's visit
When your property is damaged by any peril covered by your home insurance, here are steps to take:
- Call your insurance provider. They can answer questions and may ask you to gather information about your home before the adjuster arrives.
- File a report. Depending on what happened to your home, you may also need to file a report with your local fire department or sheriff's office. Request copies of the reports to give to your insurance company. These documents provide a complete account of your loss and support your insurance claim.
- Meet the insurance adjuster. An insurance adjuster will come to your property to collect information about the extent of your loss. Their findings determine your compensation. You don't need to be present during this investigation, but it's a good idea, so you can make sure none of the damage is missed.
What to do after an insurance adjuster visits your property
When the adjuster's visit is over, you'll need to submit any information related to your claim within the time limit defined by your policy. You might have to send in:
- A statement describing the loss
- An inventory of lost or damaged personal property
- Specifications for damaged structures
- Receipts for additional living expenses if you can't live in your home
Dealing with the adjuster can be easier if you have an itemized inventory, keep a log of your meetings with them and understand your policy limits. While it's important to be honest about your claim, you should avoid suggesting you're to blame.
Keep an itemized list of your lost or damaged property
When your insurance company asks about your property damage, hand them an itemized list of your personal property.
This home inventory shows what you own and how much it's worth. It also gives the adjuster an idea of what needs to be replaced.
Insurance companies are obligated to replace your items or provide a similar replacement. So, providing an adjuster with detailed information about your assets can increase the likelihood of being fully compensated for your loss.
Keep a log of any meetings with the adjuster
When you're assigned an insurance adjuster, document your interactions in a journal or spreadsheet.
Log the dates and times of your conversations, along with a brief explanation of what was said. If you can, get paper or electronic copies of any reports or statements your adjuster makes. This will help you stay organized during your case.
Be honest about your loss
Whether you have to provide an account to the adjuster during their visit or after, you should always be honest.
If you have to sign any statements, review them to verify their accuracy. Making false statements to the adjuster will prevent you from being compensated. Even worse, you might face a lawsuit for committing insurance fraud.
Understand your policy's exclusions
Your claim might be denied if you aren't sure what your policy covers, especially when discussing the property damage with the adjuster.
But a typical homeowners policy doesn't protect against water damage caused by a flood. Telling the adjuster your home was "flooded" by the storm could invalidate your coverage.
Avoid suggesting you're to blame
While it's important to be honest with the adjuster, you should avoid statements that suggest you're to blame for the property damage. Your policy does not cover property losses caused by negligence, so the adjuster will listen for anything you say that suggests you caused the damage.
You should avoid giving the adjuster a recorded statement. But your policy might require you to be examined under oath. If this is the case, make sure you don't contradict yourself or suggest you're to blame. Consider preparing for the statement with a public insurance adjuster, a knowledgeable professional who can guide you through the claims process.
What are a public adjuster's fees?
A public insurance adjuster charges you a percentage of your insurance payout once your case is finished. This person can negotiate with your insurance company's adjuster to resolve your claim. You usually don't have to pay a public adjuster unless you receive compensation. They would collect a service fee of 10% to 15% of your payout after the case is settled.
Due to their fee model, public adjusters typically only take on large claims. So, if you're planning to file a claim for a small loss, such as broken windows, you may not be able to hire a public adjuster.
If you can't or don't want to hire a public adjuster, consider speaking to a customer service representative for your insurance company. They could help you understand your policy's requirements for filing claims.
How to dispute insurance claims and payouts
When an adjuster rules on your claim, you might be dissatisfied if they offer a small payout or reject the claim altogether. But you have options if you're unhappy with the outcome.
- Review the payout documents. Don't sign offers from the company unless you're satisfied with the amount.
- Contact the company. Call your insurance agent or a customer service representative, and request an itemized list showing how your estimate was calculated.
- Request a reexamination. You can also ask the insurance company's adjuster to reexamine the damage to your property.
A reexamination could be useful if you have new evidence you think should be considered, such as documents showing your damaged property's original worth.
What if the estimate is still too low?
If you believe the adjuster's estimate is still too low, you can file an appeal with your state's insurance commissioner. You'll have to show that your insurance company is acting in bad faith or refusing to appraise your property loss honestly.
The state's insurance commissioner will recommend the next course of action and may contact the company to encourage a resolution. The commissioner's office could also rule that your complaint isn't justified, in which case your only option would be to hire a lawyer to take legal action.
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