While a fast settlement offer from an insurer might seem like a stroke of luck, you should keep in mind that the amount being offered may be well below what you are actually entitled to. Here are 3 reasons to think twice before accepting a fast settlement offer.
When your home or property has suffered damage your insurance company should be there to help with repairs to get the situation remedied. Unfortunately, not all insurance companies see it that way. It’s in their best financial interest to avoid paying claims where possible even when the claims are legitimate. They will use tactics like denying, delaying, or undervaluing claims in the hopes that the policyholder will just be quiet and go away. This can include offering to cut a check right away for a quick, no-hassle settlement.
1. Adjusters Want The Best Outcome For Their Employer (not you) – Your insurance adjuster might seem like he’s looking out for you and maybe he/she is to a certain extent, but remember they work for your insurer and not you. They may misrepresent or intentionally misinterpret your policy to save their employer money.
2. You May Not Know The Full Extent Of The Damage – When property damage is suffered and you first file a claim you may not fully understand the extent of the damage. Things like hidden structural damage can be present without you realizing it and only later after you’ve accepted the settlement does it come to light. Situations like this can end up costing you much more than what the insurance company paid out.
3. First Offers Are Often Deliberately Low – The first settlement offer is by design a low one. The least amount they can give a policyholder to make them go away the better. If your adjuster gives you a fast settlement offer it could be a sign they know the claim is worth more.
If you have recently had home or property damage and already accepted a settlement offer, but now realize it was significantly undervalued you may have a case. If your insurer acted in bad faith you may be entitled to compensation. Contact us today for a free case review.