By now folks in Panama City and surrounding areas hit by Hurricane Michael, are finding out how little they are going to get paid for their insurance claim damages. Our office continues to receive calls and emails from policyholders seeking help and answers about their property insurance losses. Predictably, a lot of the frustration from policyholders is about the fact that their claim file was closed without payment due to a subjective opinion by adjusters the insurance companies.

If the feedback we are getting on the ground in Panama City 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 Michael 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.

The following is an insurance claim question we answered for a policyholder through the United Policyholders Ask an Expert Forum.

Q. We are survivors of Hurricane Maria. Our property sustained severe damages from the wind and rain. The insurance company´s adjuster reports damages amounting to $36,000. But they are only offering $10,000 arguing that we failed to reassess the property in recent years. As a result, when they apply the per square foot construction cost mandated by the local insurance industry regulator, our property comes out as severely underinsured. We had purchased the property for $125,000 nearly 20 years ago and its value nowadays is below that amount owing to the economic recession.  (Of the $125,000 we paid, the appraisal back then estimated the structure value at $40,000 and the land at $100,000) We are filing a second appeal and are wondering if this is an industry practice.  Any suggestions?

By now folks in Florida are finding out how little they are going to get paid for their insurance claim damages from Hurricane Irma. Our office is being bombarded with calls and emails from policyholders seeking help and answers about their property insurance losses from Hurricane Irma. Not surprising a lot of the frustration is about the fact that their claim file was closed without payment due to a subjective opinion by independent insurance adjusters working for some insurance companies.

Q. Does the insurance company pay Overhead & Profit to the insured in Florida for reconstruction of property damage? What percentage is allowed?  

Q. Could one choose to have a larger deductible on hurricane insurance? For example; a 20% or 30% deductible on a $100,000 home? What would be the savings as opposed to a 10% deductible?