6 Tips for Dealing With a Homeowners’ Insurance Adjuster

Homeowners’ insurance is a product that is supposed to bring “peace of mind” to the policyholder. You know if you suffer any type of damage, you’ll be reimbursed; at least that is what is supposed to happen. Before you receive any compensation, an insurance adjuster will have their say.

Every claim made by a policyholder will have an insurance adjuster assigned to assess the damage and determine the value of the reimbursement. That makes the adjuster the proverbial gatekeeper between you and your settlement.

What happens if the adjuster gets it wrong or undervalues your losses? That could be an instance of bad faith insurance that could result in you filing a complaint against the insurance company. Before that happens, you need to navigate through the claims process in the hopes of a positive outcome with the insurance adjuster.

1. Be Sure to Review Your Policy

Your insurance policy is a contract, and you’ll be bound by the terms of the contract when it comes to any reimbursement.

That’s why it is vital to be well-informed about all the various clauses in your policy. You don’t want to be in a situation where you inadvertently commit insurance fraud by asking for something you’re not entitled to. This is especially true when it comes to valuation.

When replacing a destroyed asset, you are entitled to the replacement cost or depreciated value based on what is in your insurance policy. Here’s the difference:

• Depreciated Value: If your policy stipulates that you receive depreciated value for a lost asset, you will need to verify the value of each asset at the time of the loss.
• Replacement Value: The replacement value will involve the current prices for comparable assets.

When you completely understand your policy, you’ll know exactly what you’re entitled to, and that should align with what the adjuster will assert.

2. Make a List of Everything

Your assigned adjuster has no idea what you’ve lost, but they are meant to question every claim. It will help to make a list of every asset you would want to replace in the worst-case scenario of losing everything. If you haven’t made a list before the loss event, you should create one to share with the adjuster. Be sure to take photos and videos of all the damage and make corresponding notes of each item.

It is a good idea to create an inventory before any potential damage. This can be a document that you add to with every new item brought into the house. The best way to keep track of assets is to include the following for each item:

• The name of the item, along with the serial and model number
• When it was purchased
• How much did you pay for the item
• Estimate for the repair or replacement costs

3. Know Your Rights

It is important to know your rights as a policyholder. At the top of that list of rights is your right not to accept the first offer from the adjuster. In other words, you’ll have the values of your property based on your inventory list, and that should match what the adjuster is offering. If there is a significant discrepancy, you might consider appealing.

You’re also entitled to hire a loss assessor. This would be having your own adjuster who can substantiate your claim.

4. Take Notes or Record Conversations

There will always be some level of negotiation between you and the adjuster. It is important that you document what is said. Nevada is a one-party consent state for in-person conversations. That means you can record your interactions with the adjuster if you’re at your property with them. If you’re having a phone conversation, you need to ask for permission to record it. They should not object.

5. Be Honest and Polite

Although a lot is riding on the outcome, you should not automatically consider your adjuster as an adversary. They are performing a job based on the available facts. They’re also human. If you are polite and honest throughout the process, they might be more willing to work with you on certain valuations.

6. Do Not Sign Anything without Speaking To An Attorney

You are obliged to sign your insurance policy when you purchase that policy. That should be the only signature you should make without the advice of an attorney. An insurance company might try to get you to sign documents that they assert are part of the approval process, but it could be a type of waiver that gives them power and weakens your claim.

You also don’t want to sign the release for the final settlement amount until it has been reviewed by a lawyer. Once you sign and accept the payment, you will not be able to request any additional funds. For instance, if you realize you didn’t include a particular piece of jewelry, you won’t be able to get reimbursement for that amount.

There could also be issues with the insurance company acting in bad faith. That could happen if they delay the payment or ask for additional documentation that isn’t necessary.

This is the type of scenario that the Law Office of Matthew L. Sharp could help with.

We’ve helped many clients take on insurance companies that have acted in bad faith and have been successful in getting them to pay what is due. If you’re involved in a claim and are dealing with an insurance adjuster, we want to hear from you.

Call to schedule a free case review to share what happened.