You have insurance and always pay your premium on time. You look over your policy.  You make sure that your smoke detectors have new batteries, that you have an updated alarm system and take care of wear and tear issues in your home as they arise.  For years, things have been normal, but when significant and unexpected damage happens and you need to submit a claim, your insurance company may have a few surprises for you.

They tell you that you’re in good hands, so you feel that your insurance provider will be there for you when you need them. You likely assumed that insurance companies are legally obligated to operate in good faith and you never worried that as a policyholder you wouldn’t be treated fairly or compensated properly.

When the claims process ensues, the insurance provider’s goal is to reduce the liability for themselves and pay out as little as possible, if at all. Most homeowners submit their claim themselves only to realize later that the insurance company is offering significantly less than what it will take to repair the damage or nothing at all. There are many layers to the negotiation process and if you’re not working with a public adjuster or an attorney that focuses on homeowner’s insurance law, you could end up paying more out of pocket to repair damages than you should have.

Here are a few things that insurance companies don’t want you to know:

The insurance company hopes that you will represent yourself:  An adjuster who works for the insurance company is not the same as a public adjuster. The former has the upper hand over the average policyholder, who doesn’t deal with claims on a daily basis and isn’t well-suited to fight against someone with such extensive knowledge. The adjuster may even try to persuade the policyholder to record a statement without speaking to an attorney because they have bargaining power in the process.

The insurance adjuster doesn’t work for you – a public adjuster does:  It may feel like the insurance adjuster is there to help you receive the compensation that you deserve.  But the insurance adjuster is a trained negotiator who doesn’t always fight fair, resorting to appealing to a policyholder on an emotional level to get them to accept a lower settlement.  Consider hiring a public adjuster on your own that doesn’t represent the insurance company. Since most get paid on a contingency basis (they get paid when you get paid), they will fight hard to get you the biggest payout possible. Know that part of negotiation is manipulation and without an experienced lawyer on your side, you could be duped into saying something that could be used against you to deny your claim.

Settling is beneficial to the insurance company:  Each claim is different but oftentimes, the insurance company is motivated to settle.  Having an attorney to work on your behalf, to bring an action for breach of contract and/or bad faith against the company if things head that way is always a good option if required.

Undervaluing your claim is standard operating procedure:  Insurance is a business, plain and simple.  Driven to make a profit for the company, an adjuster has good reason to undervalue your valid claim.  If you’re not aware, you could easily settle for less money than you’re entitled to if the adjuster convinces you it’s a good deal.

If your homeowners insurance claim has been denied, underpaid or has hit a legal snag, hiring a homeowners insurance attorney can get you the payment you deserve to repair your property. Call 844-96-CLAIM to get a free case review.

Facing the devastating after-effects of hurricane-related damage is emotionally taxing. Having to deal with trying to figure out the in’s and outs of filing a property damage claim can be confusing, if not daunting. In having to deal with severe emotion and frustration, judgement can get clouded. However, in order to prevent your situation from getting worse, there are several things that should never be done. Here are the top 5.

1. Don’t return to your home until it is deemed safe to do so.

In addition to protecting your own safety, first responders first priority is to find any survivors and casualties. Returning before they allow it will prolong their job, but other lives at risk and put you in danger. Remain patient and wait for the go-ahead.

2. Don’t immediately discard of potentially damaged items.

In addition to not being in the best mindset to make sound decisions after a devastating event, you may be able to salvage some property that would otherwise have to be completely replaced. Although at first sight your property may appear to be totally destroyed, upon further examination, you may find that there’s a lot that is salvageable

Also, if you salvage partially damaged property, your insurance company will try to make sure that your property doesn’t suffer further damage.

3. Don’t wait to contact your insurance company after the damage is done.

Once you file your claim, they will send out a person to assess your property for compensation. Remember, you’re not the only one who will be contacting them. Therefore, the longer you wait, the more time you will have to wait in line and your compensation will be delayed.

Also, your insurance may have a ‘prompt notice’ requirement which mandates that you contact the company as soon as damage is caused.

4. Don’t assess the cause of the property damage to the adjuster.

Although we all have the best intentions of trying to help the situation, this may cause more damage than help to the owner of the property. Sometimes this ‘self-diagnosis’ may lead to the damage not being covered. Leave the job to the professionals and save yourself some potential heartache.

5. Don’t feel that you have to accept the initial estimate for compensation that you receive.

Following the mass destruction that is caused by a severe hurricane, an insurance’s goal is to close as many properties as possible in the shortest amount of time. The majority of the time, they will also undervalue the property damage- it’s a business, after all! With these two elements at play, it leaves the owners of the damaged property without enough money to cover their damages.

There are few things more awful than coming come to a room full of water as a result of a leak. When it comes to water damage, home insurance companies can be tricky to navigate as some instances are covered while others are not.

While Florida insurance companies do often cover sudden and unexpected water damage, they will not cover anything that happened over time and you, as the owner, may be stuck with the cost of it.  Also, flooding is not covered unless separate coverage is purchased. Finally, certain parts of a broken or leaking pipe incident may be covered. Let’s take a more specific look at what is and isn’t covered by your standard homeowners insurance.

What is covered:

If the nature of the water damage is unexpected such as a burst pipe or ruptured water heater, there’s a good chance that your policy will provide you with compensation.

The key words are ‘accidental’ or ‘sudden’ – if those describe your situation, then you will likely be covered.

Your insurance policy covers your dwelling which consists of your walls, roof, floor, appliances, and mechanical systems. Also, it can cover your personal items but does have a cap on luxury items which may require the purchase of a rider to cover the total cost.

Finally, if you are unable to stay in your home due to the damage, your insurance policy should cover the living expenses such as hotel or transportation that are affected as a direct result of it.

What isn’t covered:

While insurance policies will cover sudden breaks, there are instances in which they may not. If an adjuster finds that there are signs of normal wear and tear or negligence on your part or that of a plumber, your claim may be denied. It is only in the instance that the pipes were properly maintained and malfunctioned that the insurance company will cover the damage.

Sewage backup and flooding are not covered by regular policies, but there are affordable options to add that protection, which is highly recommended.

Most often, mold damage isn’t covered by Florida insurance companies either. However, if it is the result of a covered leak, then you may have the possibility of coverage. Policies often have a cap on how much is covered so a rider may have to be purchased to cover the full extent of the damage.

If your claim gets denied or underpaid…

If you had the proper insurance coverage and were denied or your claim was underpaid, you may employ the services of a homeowners insurance claim attorney.

Law Firm of David Low and Associates, P. A. | 844-96-CLAIM

DISCILAIMER: The information in this article is purely for educational purposes, reflective of the time it was published. It is not to be understood as legal advice.

Roses are red, Violets are blue, We love an unusual claim, Don’t you?

We’re taking a moment from enjoying chocolates and roses on Valentine’s Day to reflect on some unusual homeowner’s insurance claims that didn’t all come up hearts and flowers!

Cupid has his arrow, but our first homeowner had a gun

As a professional gun restorer, one would normally remember to check the chamber for bullets, which is gun safety rule number one.  The homeowner was surprised to discover that the gun he was cleaning was actually loaded and he inadvertently shot his television set.  His insurer believed his claim and reimbursed for it, which was quite a gift to him!

Doves are the birds of love, but swans are shockingly beautiful

Our next tale involves the solemn story of a swan who didn’t notice that he was flying directly into some high voltage power lines until it was too late.  After the poor bird’s unfortunate shock, the swan flew straight into a home, leaving a large hole in the roof when the bird entered.  The claim was paid, and the damage was repaired fast.

Steamy kitchen claim

One couple loaded up their dishwasher to the max only to encounter a horrible mess when the dishwasher got stuck on high heat. The kitchen was overwhelmed by steam, positively drenching the entire room.  Although their home insurance provider rejected their claim, the couple’s flood insurance kicked in and covered all the damage.

And they called it puppy love

Dogs can do amazing things like save their owners lives or help calm anxiety.  Generally, arts and crafts are not their strength.  When a homeowner accidently left a can of paint open while painting her walls, she was in for the surprise of her life.  Her dog wandered over to the can of paint and as he passed it, his tail landed in the can and proceeded to coat her house in paint as he wagged through each room. The shocked homeowner was happy to have her claim paid. Her dog retired from painting but enjoyed a lovely bath.

Will you ‘bee’ mine?

A bee caught our homeowner’s eye and he became hypnotized by the insect’s flying and buzzing around his head.  When he stood up, he became dizzy and proceeded to fall over and put a substantial dent right in his kitchen wall.  Unfortunately, the damage that was incurred didn’t exceed the man’s deductible, so he had to deal with the sting of paying for the repairs himself.

Not all homeowners are so lucky to get their claims paid. When homeowner’s insurance claims are denied or underpaid, we fight for your compensation. Save our number for when this happens to a homeowner you know in Florida: 844-96-CLAIM.

According to Inc Magazine, 60 percent of Americans admit to making New Years’ Resolutions, but only 8 percent successfully achieve them. This is largely because resolutions take consistent effort. For example, if your goal is to lose weight, you must consistently make choices that support that goal. It’s easy to get off track.

Resolutions concerning your biggest investment – your home – can have long-term benefits while typically requiring a one-time effort. Here are a few to consider:

Resolution 1: Shop for Better Homeowners Insurance

If you financed the purchase of your home, you were required to purchase and keep a homeowner’s insurance policy. In more cases than not, homeowners buy insurance policies that fit their budget but don’t necessarily provide the full coverage they may need.

First, understand what your current policy covers. Since Florida properties are highly prone to wind and water damage, it is important to consider all possibilities. Some factors to take into account include your proximity to zones especially susceptible to storm damage, the value of your home, and the value of your personal property.

The latter could have changed since you first got your existing policy, which brings us to Resolution #2.

Resolution 2:  Take Inventory

Take inventory of your valuables and the state of your property. In addition to having an updated list of valuables to cover under your insurance, taking a look at your home can help prevent unnecessary damage in the future. Keep in mind that damage that is found to occur due to neglect is not covered by insurance policies, even if it was worsened by a storm.

Inspect your roof, gutters, windows, sidewalks and large trees for any potential issues and make repairs as needed. Hurricane season is only 5 months away. Test your carbon monoxide and smoke detectors, replacing batteries and the units themselves if necessary.

In your preparations, take down important numbers in case of damage. You should include a public adjuster and a homeowner’s insurance attorney in case your insurance claim is denied. Our number is easy to remember: 844-96-CLAIM.

Resolution 3: Create an Energy Efficient Home

While you’re taking your property’s pulse, consider making your home more energy efficient. Areas to consider include lighting, windows, sliding doors, appliances and solar panels. Depending on the changes you make, you can see immediate savings on your energy and water bills. Some cities even offer incentives to make your home more “green”. Here are some of the rebates, incentives and programs the City of Fort Lauderdale offers its residents for adopting sustainable practices in their homes.

Resolution 4:  Pay Down Principal

What’s another good use for your tax return? Put it into paying down your mortgage. Here are a few ways to do so:

• If you have private mortgage insurance or PMI, paying down your mortgage can help you save. When you bring it down to the 80 percent equity level, you will wipe out the need for your PMI payment each month, which can save you about $100/mo depending on your payment.
• Work with your lender to pay down the principle. You can use your tax return to make an extra mortgage payment for the year or space it out and pay extra every month. Be sure to discuss these options with your lender to make sure your additional payments are going towards the principle.

Resolution 5: Consider Refinancing Your Mortgage

This option is not the right fit for everyone, but can be helpful if you:

• Plan to stay in your home for at least the next 5 years
• Want to lower your monthly payment
• Have improved your credit score

One of the most important things to consider when refinancing is whether the savings outweigh the closing costs (about 2% – 4% of your home’s value). The goal is to save money so you will want to make sure that you fully understand the pros and cons.

Getting your homeowners insurance claim approved by an insurance company is an arduous and often long process. When you finally hear that your claim has been approved and the final step is to sign a few pieces of paper to receive your check, you are likely elated to do so. Unfortunately, this is where many homeowners make a significant mistake.

By signing a release of claim, you give up the important right to seek further benefits under the policy relating to that loss. A release takes away your right to reopen or supplement a claim. In some cases, you may find additional damage while repairing the original damage; such as mold in walls which you cannot see until the wall is being opened. In the event you find hidden damage, you will want to submit a supplemental claim, but if you sign a release of claim, you will not be able to do so.

It is most important to know that your homeowner’s insurance policy does not require that you sign a release in order to receive benefits. A release of claim must be supported by consideration, or in laymen’s terms, when there is an exchange of something of value for something else of value between two parties outside of an existing contract. For example, if there is a dispute as to whether an insurance premium was paid on time when a homeowner submits their claim, it can take the claim outside the limits of the contract and therefore, payment for the claim would be a consideration on the part of the insurance company and may warrant a release of benefits.

Insurance companies prey on homeowners who may not understand this legal concept. Even if a public adjuster is working on the claim for you, they cannot legally advise you on whether the release should be signed or not since they are not attorneys and this would constitute the practice of law, which is outside their scope of qualifications.

In a case like this, the best a public adjuster can do is advise their client to confer with an attorney who specializes in suing homeowner’s insurance companies such as David Low & Associates. Depending on the facts of the case, an attorney is able to help determine whether the release of claim is justified or not.

It is important to note that the Florida Department of Insurance has found insurers to abuse releases, especially in claims submitted for hurricane damage. So much so that after Hurricane Andrew, the Commissioner at the time, Tom Gallagher, issued Informational Bulletin 93-005:

“It has been brought to the attention of the Florida Department of Insurance that some insureds are being required to sign full releases in order to receive claims disbursement in settlement of claims relating to Hurricane Andrew.

The Department interprets Florida Statutes 626.9541(1)(i), 626.9641(1)(b), 626.9702, 627.4265, 627.702 and Emergency Rule Subsections 4ER92-26(4)(g), 4ER92-27(4) and other emergency rule subsections on similar topics, to mean:

1. No check or draft issued in settlement of an insurance claim shall contain a provision which makes negotiation of the instrument an acceptance of the amount payable thereon as full and final settlement of the underlying insurance claim, except those that are for full policy limits.
2. To eliminate misunderstanding or confusion and possible violation of Florida Statute 626.9541 and Rule 4-166.023, Florida Administrative Code, the Department is requesting that insurers limit the use of general releases to those settlements for which they are appropriate, and insert in said releases language to the effect that the release shall not constitute a final waiver of claims which are reasonably unforeseen on the date of the release.”

When you hit any legal obstacles with your homeowner’s insurance claim, call David Low & Associates at 844-96-CLAIM for a free case evaluation. Our primary office is in Fort Lauderdale, FL.

This article is for purpose of providing information and does not constitute as legal advice.