Tips for Negotiating a Fair Settlement for Fire Damage Claims
Massive fire incidents cause unexpected and extensive damage to property and lives. The scariest one is the financial and emotional toll these unprecedented events take on homeowners. In the face of the crisis, the last and foremost thing you deal with is settling the fire damage claim. Getting monetary help is essential to compensate for the loss caused by such destructive events. Only the full and fair claim settlement amount adequately covers replacement or repair costs. Hence, understanding negotiating tactics can help you reach a successful claim settlement agreement. Read the following blog to learn how to secure a fair amount through effective negotiation skills in a simplified manner.
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Understand Your Policy Coverage
As a homeowner, you should thoroughly review your property insurance policy to understand the included fire coverage. Typically, it covers certain damages and losses caused by the destructive events. However, you can buy additional coverage to cover the cost of the fire damage restoration or repair above the policy’s limit. Keep in mind that the insurance company always prefers to compensate for the actual cash value of an item rather than the replacement cost. The actual cash value of a damaged property always comes lower than the replacement cost because it is equal to the replacement cost minus deductibles. Hence, reach out to your insurance agent and clarify your doubts regarding the fire damage’s coverage limits, deductibles, and exclusions.
Document All Damages Thoroughly
To claim the fire insurance, you need to produce comprehensive documentation of all damages to the insurance company. The insurance company always wants to put a limit on your claim amount. However, the proper documentation of every loss or damage to the structural integrity and the home content can help you get the compensation you claim. Hence, follow the following tips for creating a comprehensive record to simplify the loss assessment in the event of a fire:
- Take numerous clear photos and videos of the structural damage and loss of personal belongings like electronics, furniture, carpets, rugs, artwork, and jewelry
- Prepare a complete inventory of the damaged content, including a description of each item, the extent of the damage caused to it, and its actual worth.
- Include receipts of purchases for expensive items.
Get an Independent Damage Assessment
The insurance adjuster is loyal to the insurance company and its benefits. They often overlook the hidden signs of damages to reduce your payout. This way, they maximize the company’s benefits and reduce your welfare. In such a situation, you should hire an independent appraiser who can efficiently evaluate the repair or replacement cost based on their thorough and minute assessment of the fire damage site. They are well-versed in the policy’s terms and understand the policy’s inclusions or exclusions in a better way. Their professional estimate will help you negotiate with the insurance provider confidently. That way, you will leverage the most favorable claim.
Be Cautious with Temporary Repairs
It is vital to ensure the property’s safety and minimize the consequences of the unfortunate fire incident with temporary repairs. These repairs help until the claim is approved and the property is overhauled properly. Furthermore, the insurance company is liable to bear the expenses of essential yet temporary repairs (eg. Securing any structural damage or roofing, boarding up broken windows, fixing doors, etc.). However, avoid making major repairs without the insurance provider’s permission before the settlement. This will completely hide the visible signs of difficulty. Consequently, the claim reimbursement process can become complicated.
Avoid Accepting the First Offer
One of the most important things about the fire damage insurance claim to know is that you should avoid accepting the initial offer. Once you agree with the offer, you can’t ask for the full value of the replacement or restoration cost. Hence, take your decision wisely. Keep in mind that the company often undervalues the loss. Carefully review the offer and ask yourself ‘Whether or not the claim amount aligns with the total restoration value. Hire independent contractors to estimate the loss and then, compare it with the company’s offer. Do not worry! You still have the power to negotiate the highest claim settlement amount. The back-and-forth negotiation will help you avail of a better claim amount.
Keep Detailed Records of All Communications
Keep a diary with you until the claim settlement is resolved. It should include detailed records of all communications, including dates, times, names of representatives you have spoken to, and the details discussed. This way, maintaining a comprehensive record of everything will help you track the progress of the claim process. Furthermore, if there arises any conflict or dispute with the company, your diary will help you resolve the issue. Remember, habitually keeping records in an organized manner aids you in analyzing what worked and what didn’t. This way, you can strengthen your position in negotiations.
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Conclusion
Understand the significance of preparation for a better claim settlement. Your pre-preparedness helps you address the company’s questions and concerns more effectively. And yes, this starts with a better understanding of the policy’s nuances and comprehensive documentation. Additionally, you should follow persistent behavior throughout the process. Your persistent efforts and patience will help you stand in the long run. This is the right strategy to negotiate with the insurance company until the maximum claim amount is approved.
