Filing a property damage insurance claim can be a stressful experience, especially after a hurricane, flood, or fire. Unfortunately, many homeowners make mistakes during the complex claims process that can result in delayed, underpaid, or denied claims. To help you avoid these pitfalls, Insurance Litigation Group (ILG) has compiled a list of the most common insurance claim mistakes and how to prevent them.
- Failing to Review Your Policy Before Disaster Strikes
Many homeowners don’t thoroughly review their insurance policies until they need to file a claim. This can lead to surprises about coverage limits, exclusions, and deductibles.
💡 Tip: Take time to review your policy annually, especially before hurricane season. Make sure you understand what’s covered and discuss any gaps with your insurance agent.
- Not Documenting Damage Properly
Insufficient documentation is a major reason delayed, underpaid, or denied claims occur. Some homeowners clean up too quickly without photographing or recording the full extent of the damage.
💡 Tip: Immediately after damage occurs, take clear, time-stamped photos and videos of all affected areas and items. Create an inventory of damaged belongings, including estimated values.
- Waiting Too Long to File a Claim
Delaying your claim can be costly. Most policies have strict deadlines for reporting damage, and waiting too long could jeopardize your payout.
💡 Tip: Report damage to your insurer as soon as possible. Keep records of all communication, including claim numbers and the names of representatives you speak with.
- Accepting the First Settlement Offer
Insurance companies may offer an initial (undisputed) payment to help start repairs, but they often hold back part of the payout (withheld depreciation) until the work is completed. They may also underestimate the true cost of repairs, leaving you to cover the difference. If they try to settle the entire claim in exchange for a release, the amount they offer is often not enough to fully restore your home to its pre-damage condition.
Many homeowners accept these settlements without realizing they can negotiate or that their damages may be undervalued. Before signing anything, make sure all repair costs are covered. Once you sign a release, you give up the right to request additional funds for hidden or unexpected damages, leaving you with no way to recover those costs.
💡 Tip: Don’t feel pressured to accept the first settlement offer. Consult with an experienced property claim attorney to ensure the settlement adequately covers your repairs and losses.
- Not Mitigating Further Damage
Your policy likely requires you to take reasonable steps to prevent further damage after an incident. Failing to do so can give insurers a reason to reduce your payout.
💡 Tip: After documenting the damage, make temporary repairs (like tarping a roof or boarding up windows) and keep all receipts for materials and labor.
- Providing Incomplete or Inaccurate Information
Errors in your claim, whether accidental or intentional, can cause delays or denials. Even small mistakes in describing the damage can create complications.
💡 Tip: Be as accurate and detailed as possible when filling out claim forms. If you’re unsure about any part of the process, seek professional help.
- Handling the Claims Process Alone
Insurance companies have teams of adjusters and attorneys working to protect their bottom line. Going through the claims process without professional support can put you at a disadvantage.
💡 Tip: Partner with property damage attorneys to advocate for your rights and push back against unfair denials or delays.
Let ILG Fight for You!
At ILG, we specialize in helping both homeowners and business owners navigate the complex world of insurance claims. If your claim has been delayed, underpaid, or denied, we’re here to fight for the compensation you deserve.
Contact ILG today for a no-charge property inspection and claim evaluation at 888-ILG-4254 (1-888-454-4254). Take the stress out of your insurance claim process!
