Homeowner Loss Assessment Factors
Most people — and especially in Florida, where tropical storms and hurricanes are a regular threat — purchase home insurance under the assumption that their insurer will make reasonable attempts to compensate them when something goes wrong and they suffer property damage. The unfortunate reality, however, is that insurers (even in the homeowner insurance context) are in the business of minimizing their claim payouts. If you’ve suffered property losses to your home, you may find that your insurer makes you a lowball offer, or denies your claim entirely. In some (rare) cases, your insurer may even fail to make payments after reaching a settlement. A number of different factors can negatively affect the likelihood that an insurer will settle a claim for a reasonable value. Consider the following non-exhaustive list. Failure to Mitigate Homeowners have a responsibility to make reasonable efforts to mitigate damages and protect their home from suffering further damages, where possible. This may involve repairs. For example, a homeowner cannot knowingly allow wood rot to destroy their home without making reasonable efforts to prevent the spread (perhaps by hiring a contractor to treat the rot and repair the damaged areas). Partial or Non-Disclosure of Facts Your homeowner insurance policy application should have contained a full disclosure of all material facts pertaining to the property. If certain relevant facts were not disclosed in the application, the insurer may use that as justification to deny your claim. Event is Not Covered by the Policy Whether a given event is […]