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Tactics Insurance Companies Use to Avoid Providing Fair Compensation to Policyholders

The insurance industry brings in tens of billions of dollars each year across the United States. Despite this, many policyholders in Florida and nationwide find that they don’t get the support or responsiveness they need when it comes time to file an insurance claim.

The following are some of the common tactics insurance companies use to avoid providing fair compensation to policyholders in the event of a natural disaster, vandalism and other issues:

  • Developing complex contracts: Insurance documents tend to contain enormous amounts of legalese and complicated language that’s difficult (if not impossible) for the average policyholder to understand. These key policy documents may contain clauses that actually prevent some of the common-sense coverage you may have assumed you were getting.
  • Delayed proceedings: Studies have found that only a small percentage of customers, never sure of their rights to begin with, will pursue claims or go so far as to hire an advocate to assist them in obtaining their rightful compensation. The result is often settling for smaller amounts than they are entitled to in reality.
  • Using outside claims adjusters: In the past, insurance claims adjusters worked for insurance companies directly, and they were the ones who would have the most say in the amount of compensation a policyholder received. That’s no longer the case. Claims adjusters today are usually independent contractors who are only able to make recommendations to the people who actually decide on the amount of compensation paid.

What can you do to protect yourself?

Knowledge is power, and it’s important for policyholders to have at least a basic understanding of their rights and the details of their homeowners’ insurance policies. To start, make sure you carefully review your coverage, ideally working with a public adjuster to examine your policy and find out exactly what is and is not covered. For example, most policies do not automatically cover flood damage, which is a major concern in many parts of our region.

If you do need to file an insurance claim in Florida, you should never back down to insurance companies and unfair settlements. Public adjusters can help negotiate with claims adjusters to give you the best chance at receiving the compensation you need and deserve when disaster strikes. When your home and your future are on the line, it’s extremely helpful to have a knowledgeable advocate on your side.

Advocate Claims Public Adjusters serves homeowners and business owners throughout Florida, including Broward County and Palm Beach County. Call us today at 1-954-369-0573 or contact us online today.