Underpayment on Your Insurance Claim

Experiencing underpayment on your insurance claim can make rebuilding and recovery even more challenging for homeowners who have lost their homes or valuables due to a disaster. However, insurance companies often underpay claims, leaving policyholders struggling to cover the full cost of repairs and replacements. If your settlement offer is less than what you need, you have the right to dispute it. With the help of a public adjuster, you can fight back against lowball offers and secure the compensation you deserve.

Here’s how to identify, challenge, and correct an underpaid insurance claim.

Step 1: Recognize the Signs of an Underpaid Claim

Insurance companies reduce payouts in several ways. Watch for these red flags:

• Insurers may undervalue personal property losses, offering payouts that don’t reflect fair market value.
• Some claims exclude hidden damages, such as water, smoke, or structural issues, leaving them uncovered.
• Low repair estimates may fail to account for actual costs, leading to insufficient compensation.
• Certain costs, like temporary housing, food, or relocation, might be denied by insurers.
• Depreciation reductions can lower your settlement by paying Actual Cash Value instead of replacement costs.

📌 How a Public Adjuster Can Help: A public adjuster performs an independent assessment, ensuring that ALL damages are accounted for and fairly valued.

Step 2: Review Your Insurance Policy

To dispute an underpayment, you must first understand what your policy covers. Check for:

• Verify that the correct deductible has been applied to your claim.
• Check if losses have been unfairly depreciated under Actual Cash Value (ACV) instead of Replacement Cost.
• Review your coverage limits to determine the maximum payout for your damages.
• Ensure that temporary housing and living expenses are properly covered under Additional Living Expenses (ALE).

📌 How a Public Adjuster Can Help: Public adjusters are experts in insurance policy interpretation. They’ll identify where the insurer may be shortchanging you and fight to enforce your coverage.

Step 3: Gather Additional Evidence to Support Your Claim

If your claim is underpaid, you must provide stronger proof of your damages.

• Obtain independent repair estimates from contractors to reflect actual repair costs.
• Capture additional photos and videos from multiple angles, including before-and-after comparisons.
• Provide an updated inventory with detailed descriptions and estimated values of lost personal property.
• Include professional reports, such as engineer assessments or mold inspections, to challenge the insurer’s findings.

📌 How a Public Adjuster Can Help: Public adjusters create professional damage reports, which carry more weight in settlement negotiations.

Step 4: Negotiate with Your Insurance Company

Once you have supporting evidence, reopen the claim and request a higher settlement to address the underpayment on your insurance claim.

• Request a re-evaluation to have a different adjuster inspect the damage.
• Submit a formal dispute letter outlining why the payout is too low, citing policy terms and supporting evidence.
• If your policy covers replacement costs, challenge depreciation deductions to secure full reimbursement.
• How a Public Adjuster Can Help: They manage all communication and negotiations, preventing you from being pressured into accepting a low offer.

Step 5: Request an Insurance Appraisal

If negotiations stall, many policies allow for an appraisal process to resolve disputes.

• You hire an independent appraiser.
• The insurance company hires its appraiser.
• A neutral umpire settles any disagreements.

📌 How a Public Adjuster Can Help: Many public adjusters serve as appraisers and can represent your best interests in this process.

Step 6: File a Complaint or Seek Legal Help If Necessary

If the insurer continues to underpay, you can escalate the dispute:

⚠ File a Complaint with Your State’s Insurance Department – Regulators investigate unfair claim practices.
⚠ Hire an Attorney – An insurance attorney can take legal action if underpayment is severe.

📌 How a Public Adjuster Can Help: Public adjusters strengthen your case by providing professional documentation that supports a higher settlement.

Prevent Future Claim Underpayments

• Keep detailed records of damage, repair costs, and all correspondence with your insurer.
• Stay informed about your policy to understand your rights and coverage.
• Involve a public adjuster early to ensure your claim is accurately valued from the start.

Why You Should Work with a Public Adjuster

Public adjusters work for you, not the insurance company, ensuring that:

• Ensure all damage is thoroughly documented to prevent overlooked or undervalued losses.
• Build a strong claim from the start to avoid underpayment and future disputes.
• Maximize your settlement by securing every dollar you’re entitled to.
• Let professionals handle negotiations, reducing stress and avoiding delays.

Underpaid insurance claims cost homeowners thousands of dollars in out-of-pocket expenses. Don’t settle for less than you deserve—a public adjuster fights for the full settlement you need to rebuild.

Get the Compensation You Deserve

If your insurance claim has been underpaid, you have options. By:

• Request a re-evaluation to ensure a fair assessment of your claim.
• Work with a public adjuster to negotiate a higher settlement.
• Gather additional evidence to strengthen your case.
• Challenge depreciation exclusions that may reduce your payout.

You can increase your settlement and ensure your recovery isn’t held back by an unfair payout.

Have your assets or belongings been damaged due to a natural disaster or major damage event?
Click the “Get Assistance” button to begin the process—we are here to help!