Top 5 Things You Need to Do Before You Have a Loss

When disaster strikes, you don’t want to be left scrambling to get the insurance coverage you thought you had. The truth is, insurance carriers have a long history of denying, delaying, and underpaying nearly every claim they receive. Public adjusters—who act solely as first-party property damage adjusters—are your best line of defense, helping you navigate the claims process and ensuring you receive fair compensation.

1. Review Your Insurance Policy in Detail

One of the main reasons claims are delayed or denied is that policyholders don’t fully understand their coverage. Insurers often use complex policy language to their advantage, burying exclusions and limits deep in the fine print. Authors like Bill Wilson, in his book When Worlds Collide, emphasize the importance of understanding these intricacies before disaster strikes.

• Policy Exclusions: Be sure you understand what your policy covers—and more importantly, what it doesn’t. Many policies exclude damages from specific causes, such as flooding or certain types of water damage.
• Update Your Coverage: If you’ve made improvements to your property, like renovations or upgrades, it’s crucial to update your coverage. If not, you may find yourself underinsured and unable to claim the full value of your loss.
• Deductibles: Check your deductible amounts for different types of damage, such as wind, fire, theft, or vandalism. These can vary widely, and failing to account for high deductibles could lead to unexpected out-of-pocket costs.

Consulting with a public adjuster, like those at Velocity Public Adjusters, or your agent can help you clarify your coverage and identify any potential gaps before a loss occurs.

2. Document Your Property and Valuables

Insurance companies are notorious for underpaying claims by disputing the value of the damage. That’s why it’s essential to have a detailed record of your property before a loss occurs. Documentation strengthens your case, especially when insurers attempt to undervalue your claim.

• Take Photos and Videos: Walk through your property, documenting each room, and ensure you capture all valuable items—electronics, appliances, artwork, and any high-ticket items. Store this documentation digitally in a secure, cloud-based location.
• Keep Receipts and Records: Proof of ownership is key to receiving full compensation. Store receipts and invoices for major purchases, and update these records regularly.

David Skipton, a seasoned public adjuster, emphasizes in his book, The Claims Game, how well-organized records, such as receipts, photos, and videos, can be essential in countering the deceptive tactics that insurance companies often use to underpay or deny legitimate claims.

3. Understand Your Policy Requirements

One of the most common requirements is the need for timely reporting. After suffering a loss, you must notify your insurer as soon as possible. Delaying the report could give your insurance company grounds to deny your claim. Likewise, mitigation requirements, such as securing the property or removing hazards, are vital to preserving your coverage. Failure to act quickly could result in your claim being denied or reduced. By familiarizing yourself with these requirements before a loss occurs, you’ll be better prepared to act appropriately in a crisis.

One of the biggest pitfalls for policyholders is failing to meet certain conditions within their policy, which insurers may use as grounds to deny or underpay a claim. According to Jay M. Feinman in Delay, Deny, Defend, insurance companies often rely on these “technicalities” to reduce payouts.

• Timely Reporting: Most insurance policies require you to report losses immediately. Failing to notify your insurer promptly can result in a denied claim.
• Mitigation Responsibilities: Many policies require you to take reasonable steps to prevent further damage after an incident. If you don’t secure the property or take immediate action to mitigate the damage, your claim could be reduced or denied.

By understanding these requirements ahead of time, you can avoid common mistakes that lead to claim denials​.

4. Keep Your Insurance Agent Updated

Insurance companies won’t automatically adjust your policy when changes occur, so it’s up to you to keep your agent informed of any major developments. Whether you’ve renovated your property, added a pool, or installed solar panels, these changes affect the value of your property—and your insurance needs.

• Renovations: Even small upgrades can impact your coverage needs, so be sure your policy reflects the current value of your property.
• Life Changes: Events like getting married, having children, or even purchasing new vehicles can also affect your policy. Regular communication with your agent ensures you remain fully protected.

If you're unsure how these changes affect your policy, it’s highly recommended that you consult with a public adjuster to help evaluate and adjust your coverage as needed.

5. Understand the Claims Process Before You Need It

Understanding how the claims process works before you experience a loss will give you a huge advantage. Insurers thrive on confusion, and the more informed you are, the less likely they can delay or underpay your claim.

• Know the Timeline: Each insurance company has specific deadlines for submitting claims, so it’s critical to know these in advance.
• Be Prepared for an Adjuster: After filing a claim, your insurance company will send its own adjuster to assess the damage. This person works for the insurer—not for you. If you feel uncertain, a public adjuster can represent your interests and ensure the inspection is fair and thorough.

If you’re doubtful about handling the process on your own, having a public adjuster on your side can help you negotiate a higher payout and ensure that your rights are protected. As a matter of fact; insureds utilizing the services of a Public Insurance Adjuster receive on average over 700% more in settlement funds than those insureds who handle their claim on their own.

Protect Your Rights

Before disaster strikes, take action to protect yourself from being underpaid by your insurance company. Public adjusters like those at Velocity Public Adjusters specialize in holding insurers accountable, ensuring you get the payout you deserve. Contact us today for a policy and claim review—don’t wait until it’s too late to prepare!