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3 reasons to be wary of an initial insurance settlement offer

On Behalf of | Sep 22, 2021 | Property Damage Insurance Claims |

Whether your home or business has suffered property damage or you have experienced a severe personal injury, your insurance policy should be there to help you put the pieces of your life and livelihood back together.

Unfortunately, as a for-profit business, an insurance company may try to avoid paying compensation owed by denying, delaying or undervaluing your claim. While a quick settlement may seem like a gift, it is important to keep in mind that the amount offered may be much lower than you deserve under the law.

1. Adjusters are often savvy negotiators

While an agent may seem compassionate, adjusters are often trained negotiators who may try to misrepresent the terms of your policy to protect their own company’s bottom line. Before speaking with an agent, make sure to review your policy carefully.

2. First offers are often deliberately low

Initial offers are often low by design. If an adjuster offers a fast settlement, it may be a sign that he or she knows your claim may be worth much more.

3. You may not know the extent of damages yet

From hidden structural damage to a complicated injury that may require months or years of recovery, you may not know the extent of present and future costs when you first file a claim. Before accepting an amount, you may want to make sure you have all the information you need about the present and future expenses.

You may have already accepted a settlement and now realize the offer significantly undervalued your claim. If this is the case and your insurer acted in bad faith, it may not be too late for you to seek justice and the fair compensation you deserve.