We’ve seen anecdotal evidence that some insurance companies as well as adjusters are already talking to policyholders about invoking the Appraisal Clause in their property insurance policy. While appraisal can play an important role in the insurance claim settlement process, it is not for everyone and policyholders need to understand both the costs and limitations. We have several certified appraisers on our staff and one of the first things we do when asked to represent a client is to review the suitability based on the claim facts. Here is a Q&A I did for the media after Hurricane Michael (and now Hurricane Sally) to help policyholders better understand property damage Appraisal.

There is no escaping the property damage that Hurricane Eta will cause to the Tampa Bay region. This type of storm can throw off tornadic activity and pockets of heavy wind gusts. As a result, thousands of homeowners may be contacting their insurance company to file an insurance claim. Resources are likely to be stretched and frustration with claims will grow as our public insurance adjusters have seen with past storms. We want everyone to stay safe and also be in a condition to recover as best they can. If you experience property damage from Hurricane Eta, here are a few claim tips for filing your insurance claim that will make the process easier and possibly protect your claim from denial or other problems, especially if you have to evacuate.

Policyholders who experienced any type of water intrusion from Hurricane Sally may experience mold infiltration. When claims are delayed and repairs put on hold, it can become a real problem because mold can grow unseen for months and create a serious health hazard. Coming to an agreement with your insurance company on how to deal with mold can create major disagreements due to the fact that certain “fixes” can be expensive. So make sure you understand all your options.

Your home or business suffered damage during Hurricane Sally. You promptly filed a claim or had a public insurance adjuster document and file the claim for you. A check from the insurance company appears in the mail. Great! How easy could it be? But wait, there’s a catch! On the back of your check there is language that states you are releasing the insurance company from any further costs related to the claim.

It’s been a little over a month since Hurricane Sally roared ashore. My fellow adjusters and I have seen some serious damage in the Pensacola area and we plan to be here for the long-haul. Many policyholders are just starting to receive their insurance checks in the mail and much to their surprise, the settlement checks received are grossly insufficient and barely cover a fraction of what the true cost of repairs will actually be. Some brave souls are trying to handle their own claim. We see this same scenario play out in every storm that we have worked over the years.

If the feedback we are getting on the ground in the Pensacola area and the inquiries coming into our offices are any guide, policyholders are none too happy with the settlement offers they are receiving for their Hurricane Sally property damage claims. Most often we are told the offer does not remotely cover the cost of repairs based on estimates local contractors are providing.

Hurricane Sally has exposed what I consider some very questionable underwriting tactics that recently have been written into some property insurance policies. A few examples are, limiting emergency service to a fixed cost or not to exceed a set amount which exposes the policyholder to higher out of pocket expenses. As an example, emergency services for mitigation efforts were not limited in Coverage A (your building limit of liability) in prior policy periods. Now we are seeing examples where only a small percent of Coverage A is being made available for emergency services.

If you have experienced damage from Hurricane Sally, get prepared for the inevitable. We are hearing from commercial and residential property owners daily about their Hurricane Sally claims and their biggest complaint is, “Why is my settlement so small”?There are many possible reasons for this.  Among the most common are:

As policyholders begin to hear back from their insurance company regarding their Hurricane Sally insurance claim, many will learn that the amount offered by their respective insurer is not sufficient to pay for their complete loss and damages. Some may even learn part of their claim is denied. This is common when there is widespread damage to a geographic area and especially true with more complicated commercial claims to businesses, condominiums and hotels where methods to fix or replace damage can become complicated. There can be many reasons for this including overworked adjusters not documenting specific damages, out of state adjusters not familiar with the market or inside claim adjusters who have never personally seen the claim simply denying certain parts of the claim. 

Most homeowners and business people do not understand the complexities of estimating repair costs. Even with a policy in-hand, there is much to be interpreted and many unique factors that can impact each claim. As the recovery process for Hurricane Sally continues, we’ve received anecdotal evidence from independent adjusters who are telling us they are submitting their estimates and reports only to have the carriers send them back or make in-house changes without their knowledge. Basically, they find out the estimate they wrote was chopped up to save the carrier money. This is not happening everywhere, but enough to cause concern.