Underpaid Home Insurance Claims in Florida: What You Need to Know

If you have filed a claim with your home insurance company regarding property damage, you may have been offered a lowball settlement sum. You may be entitled to more compensation than your insurer initially offered.

How Does Home Insurance Work?

According to the Insurance Information Institute, home insurance covers homeowners who experience property damage due to a variety of causes. Homeowners pay monthly premiums to their insurer, who then provides coverage when claims are submitted. Depending on your policy, home insurance may cover damage from fire and smoke, hail, lightning, snow or ice, vandalism, or theft. Most home insurance policies do not cover damage from hurricanes, earthquakes, or floods, unless the policy specifically mentions these events.

Home insurance policies may also provide coverage for fencing, garages, sheds, or other structures on your property. Reviewing your individual insurance policy is the best way to determine what types of damage for which you may submit a claim.

Most homeowners pay around $1,200 a year for their policy, according to Policygenius. Where you live may affect your rate, with homeowners who live in states that are prone to natural disasters being likely to pay higher premiums than homeowners in less risky areas. However, despite paying out more than $1,000 a year for coverage, some homeowners claim that they have been underpaid by their insurers after submitting claims. Underpaid home insurance claims may result in homeowners having to foot the bill themselves in order to repair weather-related or other property damage.

How Do You Know if You Have Been Underpaid?

If your home has been damaged due to bad weather or a natural disaster, or you have sustained property damage due to the actions of a criminal, you may be willing to take the first offer your insurance company quotes you in order to begin the process of repairing your home as soon as possible. However, these initial quotes may be much lower than what you are actually owed.

When determining how much to pay out to homeowners who have sustained property damage, insurance companies use something called actual cash value. Actual cash value means the actual cost to replace the damaged property, minus depreciation. Depreciation takes into account the age and condition of the property prior to the property damage. While insurance companies are allowed to factor depreciation into the value of the property, some consumers claim that their insurer also factored depreciation into the costs of labor to repair their property damage, resulting in a low settlement offer.

If you believe that your insurance company has offered you far less compensation to repair your property damage than it will actually cost, you may be eligible to speak with an experienced attorney about your case. A qualified attorney may be able to review your settlement offer and determine whether you have been underpaid. Luckily, you may be able to dispute underpaid home insurance claims.

How Can You Dispute Underpaid Home Insurance Claims?

If you want to dispute how your insurer handled your claim, you may first want to review your policy to ensure that the damage for which you are seeking compensation is covered under your policy. If you believe that the damage should be covered, the next step may be to gather evidence to support your claim. Photo and video evidence of the damage, in addition to witness statements or other documentation may be helpful in bolstering your case. Finally, you may want to hire an attorney to help you negotiate with your insurer. Having an experienced attorney on your side may make navigating the claim dispute process easier, and may make it more likely for you to receive the compensation you are owed.