Underpayment of an Insurance Claim in Raleigh
Property damage claims are some of the most costly claims made by homeowners. The Insurance Information Institute estimates that the average cost incurred by homeowners due to fire and lightning damage to be slightly above $50,000 and has the highest average claim per incident. By comparison, bodily injury claims filed with homeowner’s insurance typically fall in the low $20,000 range.
For these kinds of claims, it is usually necessary for insurance carriers to act openly and honestly when managing claims. This entails honestly assessing property for damage and then issuing a fair compensation under the policy. However, many insurance companies may look for areas where they may be able to cut costs and could issue underpayment for a property damage claim.
If you have received underpayment of an insurance claim in Raleigh associated with a mishap or natural disaster, it may be time to talk to an insurance attorney. A dedicated lawyer could help you appeal the insurance company’s payment and help you secure the money you need to repair your property.
How to Avoid Underpayment of an Insurance Claim
There are a few steps an individual can take after a natural disaster has damaged their home or car in order to avoid receiving an underpayment under their Raleigh insurance claim. First, it is critical to create a thorough inventory of the damage. This includes noting structural damage as well as cataloging all the damaged items in a home.
By doing this, an individual could better ensure that the insurance company has a fair and reasonable understanding of the extent of the damage. In addition to documenting the claim itself, it is critical to keep detailed documentation of any interaction with the insurance company and to carefully listen to and read any statements issued by the insurance company.
What is a Total Loss?
One area where there is considerable confusion when it comes to insurance claim underpayment is the concept of total loss. Under many insurance policies, when an insured individual suffers property damage, the insurance company may be required to pay the Actual Cash Value (ACV) for the damaged property.
The ACV is typically calculated by determining the total current repair or replacement cost, then subtracting the cost for depreciation, followed by the subtraction of the insurance deductible. In some cases, a person may find that it could cost more to repair their home or business than the value of the building itself. For example, if an insured office building worth $50,000 sustains severe fire damage, it may cost the property owner $60,000 to repair.
Get Professional Help with Fighting Underpayment of a Raleigh Insurance Claim
Underpayment of an insurance claim in Raleigh can leave you and your family facing undue financial struggles. A dedicated attorney could help negotiate settlements with insurance companies and work on your behalf to appeal a payment amount if it does not match the extent of damages or does not meet the terms of the insurance policy. To get started working on your claim, schedule a consultation today to go over the details of your case.