Property Insurance Claim - Payout Doesn't Even Come Close to Actual Repair Cost?

Question

Do I have any recourse on a property claim when the insurance company sent out an adjustor and then simply mailed me a check? I have a $1000 deductible, and received a check (no papers signed on my part stating that I accept this as a settlement and I have not cashed the check). The insurance check is for $1400. Essentially they are saying the damage can be repaired for $2400. Well, I've had several companies estimate the damage and they range from $3700 to $4300. Does one have any recourse or must they accept what the insurance says they'll pay out and absorb the rest? I was always under the impression that your deductible is what you are "out" if you have a claim. But, looks like I'm "out" $2300, not just my $1000 deductible. I have contacted the insurance company and am now getting the run around of course. Nobody wants to take responsibility and nobody will return phone calls. TN Farm Bureau is the company - not some fly-by-night company, either.

Answer 1

Do not cash the check. You do have recourse and can fight this. My best advice is to hire a public adjuster to negotiate your claim. They often getter further with insurance companies than the insured by himself! There are several other things you can do, too, but they won't give you instant relief. One is to write a letter to the insurer, return receipt requested, and dispute the settlement offer. Send a copy of your letter to the state insurance department. Call your state insurance department and file a complaint against the insurer. Do all of these things together, and it might help you. Of course, you can call an attorney, but realize the legal fees can add up fast, and the disputed claim is $2,400.00--so that may just not be practical. I'd start with the public adjuster, though. Here is another thing you can do--

some insurers have their own network of repair/service companies. If you use their preferred provider, they pay the claim entirely ( after your deductible). Find out if your insurer has such an arrangement. If so, use it.

Answer 2

DO NOT CASH THAT CHECK!!! If you do you are accepting that amount, and the case is closed. Get your estimates together and contact the insurance company with them. Insurance companies think they are so sly as to offer you very little and get you to take it. After you get them at a better compromise, shop around again and tell the contractor that there's no insurance and get a really good price for the job. Always do your homework on the company doing the work for you too! Good Luck

Answer 3

Absolutely, you have some thinigs you need to do.

Start with calling your agent.  Ask the agent to get an explanation.  It's POSSIBLE that they are taking "depreciation" until after the repairs are made, but that doesn't usually happen on a claim as small as yours.  

Contacting the company isn't going to get you as far as contacting the agent.  But if your agent really won't help (then, of course, you're going to fire them), you need to call the adjuster, and explain you are getting quotes around 4K, why are they underpaying you.  

If you can't get a response from the adjuster, you need to complain, IN WRITING, to the state insurance department, and CC the adjuster.  Keep copies of everything you send!!  And include the written estimates you've gotten for the work.

**cashing the check doesn't close the claim.  That's a myth.**

Answer 4

Communication is a beautiful thing.......when it works.

If you haven't already done so call the company and ask to talk to the claim manager, not an adjuster, not a supervisor. Calmly explain the situation (yelling will get you nowhere) and ask that they assign an adjuster to meet with the contractor of your choice to reinspect the damages. If they do this you will find that the adjuster and contractor will agree to a figure somewhere in the middle. Trust me the contractors bid high knowing their estimate will be reviewed by the insurance company.

This is a reasonable solution and is done all the time.

Skip the public adjuster unless you want to give away a portion of the claim for what the contractor will do for you for free.

Good Luck