What Are Common Excuses Insurance Companies Make?

An important point to understand about insurance companies is their main priority as a business is protecting their own profits and bottom line. After a severe event like a winter storm or a hurricane (such as Hurricane Laura), you can expect homeowners insurance agents to try to limit coverage for insured policyholders.

Common responses that insurance companies might make to contradict a claim include:

• The coverage falls outside of the policy: Insurance companies might claim that the policy doesn’t cover the specific damage. For instance, they may try to argue that water-related damage is excluded from coverage as “flood” damage.

• Delays/Late Filing: Policies often only cover losses for a specific period of time after the winter weather event occurs. Claims filed after this time period may be delayed or denied. In most areas, this is usually one year after the event. Thus, it’s important to contact an attorney as soon as possible and file promptly.

• Incomplete Information: Similarly, insurance claims can be denied or delayed if there is missing, incomplete, or inaccurate information.

• “Multiple Occurrences”: Many policy deductibles are calculated on a “per occurrence” basis. Thus, there may be disputes about whether the damage is connected to a single occurrence, or if it involved multiple weather patterns classified as multiple occurrences. The way losses are categorized can drastically affect coverage amounts.

Insurance companies will be bombarded with thousands of claims after severe weather events. The responses above may often be used in efforts to process claims quickly. Errors can also occur, as agents may sometimes be undertrained or under certified, or acting as a rep in a part-time capacity.

Therefore, it’s in your best interests to consult with a homeowners insurance attorney prior to contacting your insurance company about a claim. Your attorney can help ensure that your claim is filed in a timely manner and that it meets all the requirements.

Tips for Dealing with Homeowners Insurance Companies and Agents

If your residence was damaged due to fallen trees or limbs, broken water pipes, or other winter weather damage, contact an attorney as soon as possible to learn about your legal rights and next steps. In the meantime, the following tips can help you protect yourself and your assets:

These tips can help prevent disputes; however, if you do have a dispute, the services of a lawyer can be of great assistance. In addition, your attorney will be able to protect you from one of the more prevalent concerns: insurance fraud.

How Can I Avoid Homeowners Insurance Fraud?

Insurance fraud happens in various settings, and homeowners insurance is no exception. The following pointers can help you protect yourself from fraud:

• Never sign a contract that you don’t understand, and never sign a contract that has blank spaces.
• Check the background and credentials of any agent you’re working with. You can visit the Texas Department of Insurance and conduct a search to see if an agent has had disciplinary orders against them.
• Try to obtain more than one bid for your claim. This can help put you in a position to select more favorable offers.
• Don’t pay up front and hold off on making the final payment until the process is complete. Contractors from outside of your area typically can’t ask for payment before starting their work.
• An offer to waive your deductible or a promise to rebate the deductible amount is illegal under Texas state law. Avoid and report contractors who attempt to do this.
• Report any suspected instances of fraud, price gouging, or unethical business practices. An attorney can help you with the reporting process.

The average homeowner may not be in a position to recognize or identify when insurance fraud is happening to them. For instance, after a weather crisis or emergency, people are often in a state of confusion and despair, making them all the more susceptible to deceitful insurance tactics.

For these reasons, it is all the more important to consult with an attorney before you begin the claims process. Having an attorney on your side will help ease your mind about negotiations, contract terms, and filing requirements — your attorney will do the bulk of the lifting for you.