The Top 5 Reasons Why Insurance Companies Deny Your Claim For Storm Damage

The approval or denial of your claim rarely has little torequest a second inspection for storm damage. I had
do with the amount or lack there of damage to yourworked with this one particular adjuster many times
home.who explained the rationale behind this odd request.
There has been an increase in complaints to theHe explained that insurance companies have insurance
Better Business Bureau for many insuranceon their insurance policies. The insurance company will
companies have been denying residential claims foroften times tell the independent adjuster to deny all
storm damage. You may be curious to know that aclaims for they are out of money for the quarter.
large portion of insurance companies have outsourcedThe adjuster explained that when the money
their claims department. This gives the insurancebecame available for the next quarter they would be
company a buffer between you and them. Yourallowed to approve the claim. In a nutshell, your
agent will often apologize for the denial of your claiminsurance provider is waiting for the secondary
and express remorse. They will explain that theinsurance company to reimburse them for your claim
independent adjuster is the person who has theprior to approval.
power to refuse or validate your claim for stormIf weather conditions are bad in your area, this could
damage.hurt your chance of getting your claim approved. This
Let us evaluate the top 5 reasons why residentialmay seem odd, but independent adjusters have a
claims for storm damage get denied.certain amount of time to complete the claims they
The independent company has the responsibility forreceive from the insurance company no matter how
inspecting all residential claims for storm damage.bad the weather. As you can see, if the adjuster
They have the power to approve or deny yourgets behind in his reports the only way he can get
insurance claim. However, the independent companycaught up is by denying a few claims to off set the
receives their orders from the insurance company. Idays of bad weather. He may be inclined to tell you
find this a conflict of interest for the independentor your contractor to resubmit for a second
adjuster has to consider the ramifications if to manyinspection. This makes no sense for it is an
claims are approved. I have met with many adjustersinconvenience to the homeowner as well as a waste
who have told me that if they approve more thanof time. The insurance companies are concerned with
70% of the claims that their annual contract wouldkeeping their double A plus ratings with the review
not be renewed by the insurance company.board. If the weather is bad in your area, do not be
The adjuster is the person who evaluates thesurprised if your claim gets denied.
property for damage. He or she may be veryMost insurance adjusters are from out of town. They
experienced in residential construction or they maytravel from state to state following the storms. You
have none at all. It is hit or miss with the adjusterwill have a better chance of getting your claim
you get to process your claim for storm damage.approved if you file shortly after the storm. The
The inspection for damage is very subjective to sayadjusters know that if they approve a claim that
the least. I have seen homes torn to shreds with hailthey will be responsible for the loss report statement
damage and the adjuster would deny the claim asuntil all repairs are completed. Basically, if the roof
mechanical damage. Mechanical damage is a termwas measured to be 3900 square feet and there
used for pop nails or it could be for poorwas a discrepancy about the size of the roof
craftsmanship. The inspection is purely subjective onstructure, then the adjuster is required to come back
the part of the independent adjuster. On the otherto the property and remeasure the roof with the
hand, I have seen times when there has beenroofing contractor. The adjusters are off on their
minimum damage and it could go either way and themeasurements quite often. They measure tight to
adjuster would approve the entire claim. The keykeep cost as low as possible for the insurance
factor for approval or denial is dependent upon thecompany. Therefore, they come back to about 60%
experience level of the adjuster who has theof their claims that they have approved. Toward the
responsibility of mitigating the claim for stormend, when request for inspections begin to decline,
damage.the independent adjuster will start denying claims in
I have had many adjusters convey to me that theyan attempt to keep him from having to come back
were going to deny the claim, but to request ato that state to mitigate a claim. Once the
second inspection from the insurance company. Iindependent adjuster leaves the state, rarely will your
found it strange that an adjuster would tell me toclaim be reopened for review.