Homeowners, Beware of Predatory Insurance Companies
The residential insurance world is a hotbed of insurance companies of ill repute. These insurance companies are referred to as predatory – those companies that prey on unsuspecting homeowners who purchase residential insurance from them.
The homeowner pays the monthly premium that may be lower than other residential insurance company quotes. Everything is just fine until a natural disaster occurs that drops a tree on a roof or vehicle, floods home with hurricane waters, or destroys a home from fire.
Once the homeowner makes an insurance claim to the insurance company to recover their lost possessions and repair damages to their homes or vehicles, that’s when the predatory insurance company rears its ugly head.
The fight begins with the insurance company refusing to pay out and making life difficult for the homeowner. Meanwhile, the homeowner is stuck not knowing how to proceed. Should they repair the damages themselves? Should they wait until the wrongful insurance company makes a decision?
That’s where Guard Your Claim can help.
Guard Your Claim Helps Homeowners Manage Insurance Claims
When a homeowner realizes they have a predatory insurance company from which they purchased Florida residential insurance, there are several options:
1. The homeowner can struggle through the insurance claims process alone, not knowing their rights.
2. They can hire a lawyer right away who will take upwards of 30% from any payout.
3. They can hire Guard Your Claim, a Florida network of independent insurance claims adjusters who work directly with the homeowner representing them in any negotiations with the insurance company. While there are never any guarantees, Guard Your Claim has negotiated many successful settlements for the homeowner. The company’s professional experts understand the murky waters of residential insurance, and they also know how to manage conversations and settlements with insurance companies.
Guard Your Claim does not sell residential insurance or Coral Gables commercial insurance. It is a company that helps homeowners and business owners recover property damages from insurance claims.
What is a predatory insurance company?
A predatory insurance company tries to trick homeowners into taking out policies with a very high deductible. These companies try to charge homeowners’ premiums for homeowners’ costly insurance policies. Predatory insurance companies will not pay up on homeowner claims when they occur nor provide the proper homeowner indemnification required by law. In these cases, a policyholder ends up filing a lawsuit against them whenever possible.
For example, an insurance provider might say they will cover water damage but not do anything after homeowner claims have been filed for this type of loss because the homeowner has a $5000 deductible amount on their policy. It applies to all losses throughout the year, so things like flooding rain, hurricanes, fires, or tornadoes do not count as something covered by insurance without enough money being paid upfront before any coverage occurs for these events.
When the Residential Insurance Claims Process Begins
Importantly, homeowners who buy residential insurance should know how the insurance claims process works. The resident’s insurance claims process starts when you report your claim to the insurance company. They will send a claims adjuster trained to estimate and document the damage done by natural disasters, such as fire or flood.
During the inspection of a homeowner’s property, the homeowner can be present to point out any issues they might have already noticed. The policyholder has a choice of whether to be present when the insurance claims adjuster is reviewing the damage to the property. After the inspections and documentation of damages are completed, then the homeowner has several options:
- Leave things alone until repairs can begin on their own
- Get temporary repairs done before permanent ones start
- Ask someone else (like a contractor) to repair the damages.
Choosing Whether to Repair a Damaged Home
The resident’s insurance claims adjuster will make suggestions about which choice to take, but ultimately, the homeowner has the final say on what happens next with their property and how repairs are done. It can be difficult for people to decide between options as there is no one-size-fits-all solution that works in every situation. Here are some things to consider:
- What does your homeowner’s policy cover?
- Are temporary fixes enough, or do they require a complete replacement of something, like a roof?
- How much cash reserve does your family have to begin repairs before the insurance company pays a claim?
- What is the level of safety in your damaged home?
- Should you begin repairs immediately to ensure the home is safer to live in while waiting for a claims adjuster and the insurance company?
The main goal is to protect your property from further damage, but it can be challenging to know the best way forward when you are in the middle of a resident’s insurance claims process. That’s why having an independent representative like Guard Your Claim help you through the residential insurance claims process is a good idea.