Our Best Burst Pipe Insurance Claim Tips For Water Damage Claims

We’re here to help. Keep reading for our best burst pipe insurance claim tips.

7 Signs You Have a Burst Pipe

A burst pipe isn’t always obvious. In fact, most burst pipes aren’t noticed immediately.

The longer you ignore a burst pipe, the less insurance will cover.

Here are 7 signs you may have a burst pipe:

1. Weird Noises: Do you hear a bubbling, whistling, banging, or clanking sound when turning on the water in your home? Do your pipes make a funny noise when flushing the toilet or turning on the sink? These are signs of a burst pipe.
2. Strange Odors: A burst pipe can often cause strange odors in your home. Do a sniff test when using your pipes. Is there a strange odor coming from your sink or toilet when you flush it? Does your washing machine have an odd smell when it fills with water? All of these could be signs of a burst pipe.
3. Water Damage and Discoloration: Water damage can be found on ceilings and walls. It might appear as a small discoloration mark at first before turning into a bigger, more noticeable mess.
4. Bulging: Your walls and ceilings could start to bulge after being affected by water damage. Watch for unusual bulges in your walls, as they could be the first signs of a serious burst pipe problem.
5. Unusually High Water Bill: One of the most obvious signs of a serious burst pipe problem is a higher-than-usual water bill. If your water bill has suddenly skyrocketed, then it could mean you have a burst pipe.
6. Low Water Pressure: A burst pipe can lower water pressure throughout your house. If you suddenly notice lower pressure when showering, bathing, or using other plumbing, then you could have a burst pipe.
7. Recent Sub-Freezing Weather: If you notice all of the symptoms above and recently experienced sub-freezing weather, then there’s an increased risk of a burst pipe. The primary cause of burst pipes is below-freezing weather, which causes cracks and leaks in your plumbing – especially if your home isn’t properly heated or insulated, or if you lost power or heating during the sub-freezing water.

How to Make a Leaky Pipe Insurance Claim

Homeowners insurance typically covers a burst pipe.

However, homeowners insurance does not cover damage to the leaky pipes themselves or damage caused by poor maintenance or wear and tear.

If you had a leaky pipe behind your walls for months, for example, before noticing the damage, then homeowners insurance may not cover it. Identifying and fixing leaky pipes is an important part of maintaining your home and an expected part of homeownership. Homeowners insurance covers unexpected events – not expected events. A recent trend in homeowners policies is to not cover a leak from a burst pipe if the leak has been going on for longer than 14 days. This is often hard to determine, especially if you have had a leak in this area before.

In any case, it’s important to call your insurance company as soon as you notice a leaky pipe. Here are the steps to take:

Step 1) Call your Insurance Company
Your first step is to call your insurer. Explain the situation, and your insurer recommends the next steps. Typically, your insurer recommends one or more water damage remediation and restoration companies, including 24/7 emergency services that can arrive on-site ASAP to begin fixing your water damage problem before it gets worse.

Step 2) Get the Situation Under Control
The water damage remediation company should arrive on-site quickly to tackle the problem. Typically, the water damage remediation company will take over damage control from here. They can turn off your water (if you haven’t already done so). They can set up fans and other equipment to dry out your home and prevent mold.

Step 3) Contact a Public Adjuster or Independent Contractor
A licensed public adjuster can negotiate with the insurance company on your behalf, fighting for every penny owed to you under the terms of your insurance contract. If your insurer is pushing back against your burst pipe insurance claim or denying certain compensation, then it may be in your best interest to hire a public adjuster at this step.

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Step 4) Begin the Remediation Process
At this point, the restoration company can begin restoring your property to its pre-loss condition, cutting out mold-damaged walls and fixing your burst plumbing. Their goal is to restore your property to pre-loss condition.

Step 5) Finalize your Insurance Claim
Your insurance company is required to compensate you for the cost of restoring your home to pre-loss condition. Your insurance company will send a claims adjuster to assess the damage, identify the root cause of the damage, and type up a claim.

In some cases, the insurance company will approve some repairs, but not others. The insurance company will cover whatever damage was legitimately caused by your burst pipe, but they might dispute other damage – like pre-existing problems with your home, which they are not required to cover.

Step 6) Maximize your Insurance Claim
Remember: insurance companies often offer a low initial settlement hoping that the homeowner will avoid disputes or negotiations. The insurance company often assumes that the policyholder is not going to ask for additional coverage or negotiate the claim.

This is where a public adjuster can be worth his or her weight in gold. A public adjuster evaluates your claim and negotiates with the insurance company on your behalf to ensure everything is covered. The goal is to maximize your insurance company payout and secure the highest possible settlement for the client. Public adjusters know the industry better than anyone, and most have handled hundreds of burst pipe claims in the past.

Burst Pipe Insurance Claim Tips

Burst pipe insurance claims can be complicated and messy.

Don’t let your insurance company push you around. Even if you have little experience with insurance claims, you can use the tips below to maximize your payout:

• Document Everything: The more photos you take, the better. Make a list of all damaged inventory and the approximate values. Take photos of all water-damaged furniture, items, possessions, and other materials. If you don’t have proof an item was damaged by the burst pipe, then your insurance company may refuse to cover it. Don’t throw anything away until your insurance company has approved it to be replaced.
• Negotiate the Claim: Before you accept the quote from your insurance company, consider hiring a public adjuster to analyze your claim. Make sure you are receiving fair value for your burst pipe damage repairs. Even after you accept a quote and receive a check from the insurance company, you can still go back and re-negotiate – say, if you find repairs or fees that were overlooked in the recovery process, or if you forgot to include certain damaged items.
• Don’t Accept Your Insurer’s First Offer If You’re Unhappy: You’re under no obligation to accept the first offer from your insurance company. If you’re unhappy with that offer, then push back. Ask them to justify the low payout. Get quotes from contractors to justify your higher valuation. If needed, hire a public adjuster to negotiate with your insurer on your behalf.
• Understand Your Coverage & Exclusions: Insurance should cover damage caused by a burst pipe. However, you need to be aware of coverage limits and exclusions. All of this information is outlined in your policy. Read your policy to understand your coverage and exclusions, giving you an advantage when negotiating with your insurance company.
• Use All of Your Coverage: Homeowners insurance doesn’t just cover the cost of repairing your home to pre-loss condition. It can also cover things like meals, transportation, and lodging reimbursement when your home is in unlivable condition. In the insurance industry these are called additional living expenses. A burst pipe problem may force you to move to a hotel for a week. You may need to dine out for meals. Keep track of all expenses. Make sure you use all of your home insurance coverage. After all, you’re paying for it.

Final Word: Consider Hiring a Public Adjuster for Your Burst Pipe Insurance Claim

At ClaimsMate, we have public adjusters who specialize in handling burst pipe insurance claims.

Our experts have helped speed up claims and increase payouts for hundreds of clients with burst pipes. We know the tactics insurers use to reduce your claim – and we know how to get around those tactics.

Sign up for a free consultation today from ClaimsMate to discover the best path forward for your burst pipe insurance claim.

Read More Here: Our Best Burst Pipe Insurance Claim Tips For Water Damage Claims

9 Common Homeowners Insurance Mistakes Made by New Homeowners

You normally don’t even get a copy of your policy until after you have made your first payment. The insurance company sends you a Declarations Page with your coverage amounts for your home, other structures and your contents. Even if it looks good on those papers, you won’t know what is covered and how it is covered until you get your policy in the mail.

Homeowners insurance is one of the most important parts of home ownership. It protects the biggest asset most people own.

Unfortunately, many new homeowners make mistakes with homeowners insurance. These mistakes can cost you a fortune.

Here are 9 common mistakes new homeowners make with homeowners insurance.

Not Realizing Flood Insurance is Excluded on Virtually All Policies

A standard homeowners insurance policy does not cover flood insurance.

You can buy flood insurance through the National Flood Insurance Program (NFIP), which is run by FEMA.

According to FEMA, just one inch of floodwater can cause up to, and sometimes even over, $25,000 worth of damage. If you don’t have a flood insurance policy, then you’ll need to pay for that damage out of pocket.

If you live in a flood zone, then your lender may have required you to buy flood insurance. However, flooding can occur anywhere – even outside of high-risk flood zones. Assess your home’s flood risk to determine if flood insurance is worth it. If you are not in a flood zone, the cost is very low for the coverage that you receive.

Not Carrying High Enough Limits

Read your homeowners insurance policy to ensure you understand your limits.

A homeowners insurance policy has 4 limits you need to check for: dwelling coverage, other structure coverage, personal property coverage and additional living expenses coverage.

• Dwelling coverage covers the cost of repairing or rebuilding your home. If your house is involved in a total loss insurance claim, then your dwelling coverage should be enough to repair or rebuild your home, based on the cost of building or buying in your area.
• Other Structures coverage covers the cost of repairing or rebuilding your detached garage, your fencing, any deck work or storage sheds. Anything that is not attached to your home needs to have its own coverage and most policies cover about 10% of your dwelling coverage.
• Personal property coverage typically consists of 50% to 70% of your dwelling coverage. It covers the property within your home. If you have $400,000 of dwelling coverage, for example, then your home insurance policy would cover a maximum of $200,000 of possessions.
• Additional Living Expenses is coverage that will allow you to move into safe living quarters after a major loss like a fire or a burst pipe that has made your home uninhabitable. This coverage should be for the actual amount of time that it takes you to repair your home, but some policies only cover a specific amount. This is not good as you don’t know how long it will take to repair your home after a major loss.

Review your limits to ensure you’re carrying the right amount of coverage. You don’t want to be underinsured or over-insured.

Not Understanding Deductibles

You probably have a basic understanding of how deductibles work. However, they can still surprise homeowners.

You pay your deductible when making a home insurance claim. You might have a deductible of $1,000 to $2,000, for example. You pay this amount, and your insurer covers the rest.

However, not all claims have the same deductible. Check your policy for any unique deductibles.

Many insurers use a much higher deductible for hurricane insurance claims, for example. You might need to pay 2% to 5% of the dwelling coverage as a deductible instead of paying just $1,000 for your insurance claim, you could pay $20,000 or more..

Check your insurance policy to ensure you understand all the deductibles you may need to pay. Some policies make you pay a deductible for each coverage mentioned above.

Buying Actual Cash Value Coverage When You Expected Replacement Cost Coverage

Your homeowners insurance policy covers the structure of your home and all the possessions within your home.

However, many standard homeowners insurance policies use actual cash value coverage – not replacement value coverage. That makes a huge difference for claims:

• Actual cash value coverage compensates you for items minus depreciation. You may have purchased a brand new, 65” TV five years ago for $2,500. However, because of depreciation, that TV is only worth $250 today – which is what your insurer will pay.
• Replacement cost coverage covers the cost of replacing your damaged items with new items of a similar level of quality. You replace damaged items with items that are similar, and your insurer covers 100% of the cost. If a new 65” TV costs $1,500 TV, then your insurer would pay $1,500. However, don’t be surprised if your insurer only covers the actual cash value until you actually replace the items and turn in the proof of payment. This is more common now than ever before.

Not Securing the Property to Prevent Further Damage After a Disaster

You have an obligation to secure your property and prevent further damage after a disaster, if it is safe to do so.

If a storm tears a hole in your roof, for example, and causes water to pour in, then you can place a tarp over this hole to prevent further damage to your property. You should not make “permanent repairs” until after your claims adjuster has been to your property to inspect the damages.

If you simply allow more damage to occur to your property after a loss or if you make a permanent repair, then your insurer could deny certain parts of your claim.

Cleaning Up Too Much After a Disaster

It may be tempting, but avoid cleaning up too much after a disaster. Otherwise, there may not be enough evidence for your insurer.

You may naturally want to clean up your home before contacting your insurer. You should secure the scene and prevent further damage – but you shouldn’t clean up the damage itself until it has been properly documented.

Your home insurance company sends an adjuster to your property to survey the damage. Once the adjuster surveys the damage, you may be able to start cleaning up the damage. Or, you could work with an emergency contractor to clean up the damage. This should be provided to you by your insurance company to avoid disputes between the contractor and your insurer over whether or not the services were necessary.

Waiting Too Long to Report a Claim

The sooner you report a claim to your insurance company, the better. All major insurers maintain 24/7 claims hotlines. As soon as your property is secure and people are safe, contact your insurer.

Your insurer does more than initiate your claim; your insurer can provide you with a cash advance to get a hotel for the night (assuming your house isn’t livable), recommend emergency contractors to begin repairs, and other crucial steps in the hours following the incident.

Not Maintaining a Home Inventory

Many home insurance experts recommend creating a home inventory. However, fewer than 15% of homeowners actually maintain an updated home inventory.

A home inventory should:

• List your possessions
• List the approximate amount of money you paid for each possession (or the exact amount, if you have proof)
• List the date and place where you purchased the possession, if possible
• Separate your possessions by room or area of your home
• Include any accompanying information about the items, like receipts, photos, etc.
• Do a walk through video of your home to include model numbers and serial numbers if available.

It’s easy to remember big items in your home. You may remember your $1,200 couch from Costco, for example.

However, it’s harder to remember the smaller items – like items stored in your attic or basement. Your insurer is required to cover all of these items in your home insurance claim, and they could add thousands to your claim – even if they may not seem like they’re worth much individually.

Not Hiring a Public Adjuster for Complex Claims, Large Claims, or Disputes

Public adjusters are independent professionals who can increase claim payouts, speed up claims, and negotiate with the insurer on your behalf.

Your insurance company has an adjuster. For larger claims, insurance experts often recommend hiring your own adjuster – a public adjuster.

A public adjuster can:

• Negotiate with your insurer on your behalf
• Organize your claim
• Walk through the claim from start to finish
• Increase payout
• Overturn denied or reduced claims
• Work hard to ensure every part of your claim goes smoothly and in your favor

If your insurance claim has a disputed amount worth over $10,000, or if your insurer has denied your claim, then it may be worth hiring a public adjuster.

Final Word

Insurers love it when homeowners make mistakes. It means they can pay less for any upcoming insurance claims.

As a new homeowner, you have a lot to learn – including the intricacies of a homeowners insurance policy.

Review your homeowners insurance policy to see if it still matches your needs.

You may need to adjust coverage – or even switch to a new insurer. However, a little work today can avoid a lot of headaches in the future.

If you don’t understand all of your policy wording, then reach out to a public adjuster for a policy review. They can explain your coverage, or lack of coverage, to you in a way that makes sense. If you have never read a full policy, with endorsements, you can be very confused about the coverages you actually have.

See More Here: 9 Common Homeowners Insurance Mistakes Made by New Homeowners

How Difference in Conditions Policies Work for Homeowners Insurance

Homeowners insurance doesn’t typically cover water damage from leaky pipes, for example. However, you could add a difference in conditions endorsement to your policy to cover this damage.

Keep reading to find out everything you need to know about differences in conditions policies and whether or not they’re worth it.

Difference in Conditions Policies Cover Incidents Homeowners Insurance Does Not Cover

A difference in conditions policy, also known as a DIC policy, is additional insurance coverage you can purchase to cover additional perils.

Some companies refer to differences in conditions coverage as “gap filler” coverage. It fills the “gaps” in a standard homeowners insurance policy or commercial policy.

A standard homeowners insurance policy covers a standard range of perils, including things like fire damage and windstorm damage.

However, homeowners insurance policies have many exclusions. A standard homeowners insurance policy doesn’t cover flood damage, for example. Many insurers don’t cover hurricane damage, earthquake damage, or wildfire damage if you live in an area prone to these disasters.

To cover these exclusions, you may want to add a “difference in conditions” endorsement to your policy. With this endorsement, your homeowners insurance policy covers additional items that would not normally be covered.

What Does Difference in Conditions Insurance Cover?

The primary goal of difference in conditions coverage is to cover things homeowners insurance does not cover.

Different insurers cover different things with differences in conditions coverage. Insurers also exclude different damages in different regions. You may not have windstorm coverage in the coastal southeastern United States, for example, or earthquake coverage in California without adding an endorsement to your policy.

Some of the common things covered by difference in conditions insurance for homeowners include:

• Floods
• Earthquakes
• Other severe losses and catastrophes typically excluded by a homeowners insurance policy

Do I Need Difference in Conditions Insurance?

The average person doesn’t carry a difference in conditions insurance, and most homeowners don’t have it.

However, DIC coverage could be the right choice for you, depending on your situation.

If you’re nervous about gaps in your existing homeowners insurance policy, for example, then you may want to consider DIC coverage. DIC coverage can fill these gaps, providing you with greater protection.

However, if you’re concerned about a single peril – like earthquakes or flooding – then DIC coverage may not be the right choice. In this case, you may be better off buying flood insurance or earthquake insurance to cover this specific peril.

If You Have FAIR Insurance, then DIC Coverage Could Be the Right Choice

If you have insurance through your state’s Fair Access to Insurance Requirements (FAIR) system, then DIC coverage could be the right choice for you.

Although most homeowners don’t have DIC coverage, many homeowners with FAIR insurance do have DIC coverage to fill gaps.

Here’s why DIC coverage may make sense for those carrying FAIR insurance plans:

• Some states provide insurance coverage for natural disasters as a last resort through the FAIR insurance system.
• FAIR insurance can cover wildfires, windstorms, hurricanes, earthquakes, and other issues in disaster-prone areas – including disasters ordinary insurers don’t want to cover.
• FAIR policies can protect your property, but they also leave gaps. They don’t cover theft, liability, or other types of losses beyond what’s listed on the FAIR coverage, for example.
• Because of these exclusions, many homeowners with FAIR plans buy difference in conditions (DIC) coverage, filling these gaps.
• By combining a FAIR plan with DIC coverage, you’re protected against major natural disasters while also getting coverage for water damage, theft, and liability, making the plan similar to a HO-3 or HO-5 home insurance policy overall.

DIC Coverage May Have Higher Limits than Earthquake or Flood Insurance

Difference in conditions (DIC) coverage may be the right choice even if you already have a homeowners insurance policy with flood insurance or earthquake coverage.

DIC coverage has higher limits for these perils than a conventional policy, which could provide you with greater protection after a loss.

Some of the areas where DIC coverage may be worth purchasing include:

• You have insurance through the National Flood Insurance Program (NFIP, but it only covers $500,000 in damage to your property. You buy DIC coverage to raise these limits and cover the full value of your property.
• Your commercial policy may only offer $250,000 in earthquake coverage, but you want extra protection because you live in an earthquake-prone area. You buy DIC coverage to raise these limits and protect your property.

Difference in Conditions Coverage is Popular in Commercial Insurance

Most of this article is written for homeowners – not business owners.

Homeowners can buy difference in conditions coverage. However, it’s more commonly found on commercial insurance plans.

Businesses with commercial properties or diverse interests, for example, are more likely to benefit from a DIC policy than a homeowner covering a single home.

If you have diverse interests in multiple geographic locations, for example, then DIC coverage can cover all of these interests. A single endorsement can provide greater protection for your businesses, property, and assets.

DIC coverage also covers unique things that ordinary commercial insurance doesn’t cover, including:

Property in transit coverage
Business interruption claims stemming from transit losses
Property at overseas locations (a typical commercial insurance policy in the United States may only cover property in the United States, US territory, and Canada, for example)
All other perils (AOP) coverage

Which Insurers Offer DIC Insurance?

Some of the country’s largest insurers offer DIC insurance, including:

• AIG
• CSAA
• Farmers
• Liberty Mutual
• Mercury
• Nationwide
• Safeco
• State Farm
• Travelers

Final Word

Difference in conditions (DIC) coverage is popular in the commercial insurance world, but it’s also becoming increasingly popular with homeowners looking to fill gaps.

With DIC coverage, you’re buying additional protection against natural disasters that would normally be excluded by your homeowners insurance policy – like wildfires and flood damage.

DIC coverage could be the right choice for commercial insurance policyholders with diverse interests. Or, it could be the right choice for homeowners with FAIR insurance policies who want to close gaps.

Contact your insurance broker, agent, or company to determine if difference in conditions coverage is the right choice for you.

Source Here: How Difference in Conditions Policies Work for Homeowners Insurance

Common Types of Commercial Insurance Claims & How Coverage Applies

Today, we’re highlighting some of the most common types of commercial insurance claims – and how insurance covers them.

Theft

Many commercial insurance claims involve theft. Retail stores deal with theft frequently, but theft can impact all enterprises.
Employee theft, for example, costs companies millions each year.

How It’s Covered: A standard commercial property insurance policy protects the business’s possessions against theft. Your insurer will compensate you based on the value of the items that were stolen, up to the limits of your policy. To cover high-value items, you may need to add endorsements to your commercial insurance policy.

Business Interruptions

Has an external event caused an interruption to your normal business? You could receive compensation through your commercial policy’s business interruption coverage.

Let’s say a fire damages the kitchen of your restaurant business. You’re unable to conduct business as normal, so your insurance covers the cost of this interruption.

How It’s Covered: If the business was interrupted due to a covered peril (like theft or fire damage), then a standard commercial property insurance policy will provide business interruption coverage as part of the claim.

Fire Damage

Businesses lose billions of dollars’ of property and inventory to fire damage each year. It’s one of the most common types of commercial insurance claims.

Like homeowners insurance, commercial insurance includes fire damage as a standard part of most plans. It’s a foundational part of your commercial insurance plan. As long as the fire was not deliberately set or occurred due to fraud, you should receive compensation through your commercial policy.

How It’s Covered: A standard commercial insurance policy covers the cost of repairing fire damage and replacing possessions after they’re damaged by fire.

Weather Damage

Hail, snow, ice, and wind can cause damage to your business.

Like fire damage, weather damage is covered by virtually all commercial insurance policies. Unless the damage is specifically excluded, your commercial insurance provider should cover the cost of repairing damage after a natural disaster.

Depending on your region, certain disasters may be excluded from your policy. Businesses in coastal parts of the southeastern United States, for example, may need to purchase extra windstorm coverage because of the higher risk of hurricanes. Meanwhile, commercial insurers in California may exclude wildfire or earthquake claims.

How It’s Covered: As long as the weather event was a covered peril (say, a windstorm or snowstorm), a standard commercial insurance policy should cover the cost of repairing or replacing any damage.

Customers Slips & Falls

If you have a business open to the public, then liability insurance is an important part of your commercial insurance policy.

Let’s say a customer slips on a wet surface in your store, for example, and breaks an arm. A standard commercial insurance policy includes general liability insurance, which covers injuries to customers and certain other people on your property (but generally not employees, which are covered in a different way).

How It’s Covered: A standard commercial insurance policy includes general liability insurance. This coverage covers bodily injuries to non-employees – like customers in your store – up to the limits of your policy.

Employee Injuries

Your commercial policy includes liability insurance to cover injuries to customers, but it also includes special coverage for employee injuries.

A commercial policy covers employee injuries via workers compensation insurance. Required in most states, workers compensation insurance covers the cost of missing work after an employee is injured at work.

How It’s Covered: An ordinary commercial insurance policy includes workers compensation insurance. In fact, most states require businesses to carry this coverage. If an employee is injured or falls ill at work, then workers compensation coverage covers medical costs and lost wages incurred by the injured employee.

Auto Accidents

If your business has a vehicle or fleet of vehicles, then your commercial policy may include auto insurance. In fact, many commercial policies include auto coverage even when employees drive their own vehicles.

If an employee is driving a company vehicle and collides with another vehicle, for example, then your commercial insurance policy covers certain costs resulting from the accident. If your employee was at-fault, for example, then your commercial policy covers the cost of repairing the other vehicle along with any injuries that occurred. It could also cover the cost of repairing your company vehicle, regardless of fault.

How It’s Covered: A standard commercial insurance policy can include auto insurance to cover company-owned vehicles and any vehicles driven for work purposes – like your employees’ own vehicles.

Damage to Reputation

Although not as common as the claims above, reputation damage can affect your business and lead to an insurance claim. Roughly 5% of commercial insurance claims per year involve reputation damage.

Although relatively rare, reputation damage insurance claims can be costly. According to Globe Midwest Adjusters International, the average reputation damage insurance claim is worth around $50,000.

Reputation damage insurance claims typically involve slander, libel, or invasions of privacy.

How It’s Covered: Some commercial insurance providers cover damage to reputation automatically. Most policies, however, require you to add reputational risk insurance. Also known as reputation insurance, this coverage covers the loss in sales resulting from a brand-damaging incident.

Product Liability

If you create products for consumers, then you need good product liability coverage.

Product liability coverage protects you from damages caused by your products. If your company’s snow shovel snaps in two while someone is using it and causes the customer to break their arm, for example, then your company’s product liability coverage could cover the cost of the customer’s injuries and other damages.

How It’s Covered: If your company makes products for customers, then you likely already have product liability insurance. Contact your insurer if you’re unsure whether or not you’re carrying product liability insurance.

Final Word

Good commercial insurance can change the fate of your business.

If you don’t have the right coverage, then you could experience a devastating loss with no compensation. If you do have the right coverage, then your insurance protects you from this loss, safeguarding your business.

Contact your insurer to verify you have adequate coverage to protect against unexpected events.

See Full Article Here: Common Types of Commercial Insurance Claims & How Coverage Applies

9 Things You Need to Know About Building Code Insurance

It’s easy to overlook building code insurance coverage. In fact, 80% of homeowners have never heard of building code insurance coverage, and many homeowners don’t understand the importance until it’s too late.

Today, we’re explaining everything you need to know about building code insurance coverage and how it works. Here are nine things you need to know about building code upgrade coverage.

How Building Code Upgrade Coverage Works

When you build or repair a property, your contractor’s work needs to be up to city, county and state codes.

Building code upgrade coverage covers the cost of building or repairing property to meet local building code standards.

An ordinary homeowners insurance policy may or may not repair or rebuild your house to code; instead, some standard homeowners insurance only covers the cost of restoring your home to its original state. Other policies cover a percentage of your total insurance or a flat fee for code upgrades. This wording is buried in your policy and often difficult for most people to locate or understand.

If your original home did not align with modern building codes, for example, and half of your home is destroyed in a house fire, then insurance only covers the cost of restoring the original home as it was. It doesn’t cover any additional costs you may incur to meet modern building codes.

To help offset this cost, many homeowners insurance companies offer building code upgrade coverage. If your policy has building code upgrade coverage, then your insurer agrees to cover the cost of repairing or restoring your home to match modern building codes. This pertains to the parts of your home that might not have been damaged, but still need to be upgraded to current code requirements.

Building Code Upgrade Coverage is Popular with Older Homes

If you purchased an older home, then building code upgrade coverage may be worth it. You can get policies with a building code endorsement that raise the standard coverage to a dollar amount that would cover the cost of the code upgrade for important items like electrical, plumbing and HVAC.

A 50-year old home was built during a much different time. Building codes were different. Builders used different materials and abided by different city or state regulations.

If your 50-year old home burns in a fire, then you may need to spend thousands of extra dollars to align your home with modern building codes. Without building code coverage, you would pay these costs out of pocket.

Building code upgrade coverage is less popular on newer homes. If your home was built in the last decade, for example, then building codes are less likely to have changed.

The older your house, the more valuable building coverage upgrade coverage can be.

When Does Building Code Upgrade Coverage Apply?

If your home is damaged or destroyed by a covered peril and you need to bring your home up to code during the repair or rebuild, then you can utilize your building code upgrade coverage.

A “covered peril” is anything that damages your home and is covered by your insurance policy. Fires, storm damage, damage from falling objects, and water damage, for example, are all common covered perils.

Let’s say half of your house is destroyed by a falling tree. Your insurer agrees to repair that side of your home to its original condition. However, that original condition doesn’t align with modern building codes. In this situation, you can use your building code upgrade coverage to cover the additional cost of meeting local building codes.

Building Code Upgrade Coverage Doesn’t Cover Renovations

You could encounter code issues when renovating your home. However, you cannot use building code upgrade coverage to cover renovations to your home.

Building code upgrade coverage only applies in situations where you need to bring your home up to code after a covered peril. If you’re voluntarily choosing to renovate your home and encounter issues with building codes, then you cannot make a claim through building code upgrade coverage.

How Much Does Building Code Upgrade Coverage Cost?

Building code upgrade coverage costs vary widely based on the age of your home, its value, local risk factors, and more.

Compare quotes from insurers in your area. Some insurers offer building code upgrade coverage, while others do not. Be sure to check your policy language for any existing coverage and then consider if you need additional coverage.
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ome insurers offer building code upgrade coverage with a specific limit – such as $10,000. Others tie it to a percentage of your dwelling coverage – such as 15%.

Is My Home Up to Code?

Each city has a local inspection office. You can contact the local inspection office to determine if your home is up to code. A good rule of thumb is if your home is over 30 years old, you might need to have an electrical, plumbing and HVAC inspection to make sure that the home meets current building codes, and if it doesn’t, a quote to bring the items up to code in case of a covered peril.

Some homeowners hire a licensed professional to inspect their home before deciding if building code coverage is worth it.

Or, you may have encountered code-related issues during a home inspection, motivating you to add building code upgrade coverage.

Building Codes Change Regularly

Your house may have been built perfectly to code in 1990. However, building codes have changed over the last 30+ years, and your home may no longer be up to code.

Cities, states, and federal governments change building codes regularly. When building codes change, all new homes – including repaired or replaced homes – must abide by new building codes.

In many cases, building codes change after a natural disaster:

• The city of San Francisco modified its building codes extensively after the devastating 1906 earthquake and the resulting fires that swept the city. The new building codes required buildings to meet certain protective standards against earthquakes while also reducing fire risk.
• The 1993 Long Beach, 1971 San Fernando, and 1994 Northridge earthquakes in California, meanwhile, led to the introduction of new building codes to better protect against earthquakes.
• After the 2003 and 2007 southern California wildfires, new building codes were introduced to better protect homes.
• In other parts of the country, floods, hurricanes, and other natural disasters can all lead to significant upgrades of local building codes.

How Building Code Upgrade Coverage Works: An Example

Let’s say you live in a hurricane-prone region of the country.

Homes built in hurricane-prone areas must meet higher wind damage standards than homes built in other areas of the country. The structure of the home must be able to withstand a certain windspeed -say, in the event of a hurricane with 100 mph winds or higher.

Your home was built in 1960 and met code standards at the time. However, regulators have upgraded that code over the years based on what we know about hurricanes. Your home is no longer up to modern code standards.

If your home was damaged in a house fire, then you need to repair your home to modern wind speed standards.

Your insurer, however, only agreed to repair your home to its original condition.

If you have building code upgrade coverage, then your insurer will cover the cost of restoring your home to its original condition and adding anything else needed to meet modern codes.

If you don’t have building code upgrade coverage, then you’ll need to cover these additional costs out of pocket.

How Public Adjusters Help with Building Code Upgrade Coverage

Property damage insurance claims can be messy – especially when there’s a lot of money at stake or a dispute. Public adjusters can help.

ClaimsMate’s public adjusters specialize in solving tricky building code upgrade coverage disputes.

Contact ClaimsMate for a free consultation.

During the consultation, a ClaimsMate adjuster can help you decide the best path forward for your insurance claim.
Discover how a public adjuster could help speed up your claim and maximize payout today by scheduling a free consultation with ClaimsMate.

See More Here: 9 Things You Need to Know About Building Code Insurance

11 Signs Your Insurer is Acting in Bad Faith

Good insurance companies treat you fairly and ethically. Bad insurance companies make you feel like you’ve done something wrong.

When does a normal insurance investigation cross into “bad faith” territory?

What’s the difference between a slow claim and a bad faith insurance claim?

Today, we’re explaining the top 11 most common signs your insurer is acting in bad faith.

Denying Your Claim Without Good Reason

If an insurer has denied your insurance claim without giving a good reason, then your insurer could be acting in bad faith.

State insurance laws require insurers to provide a reason for each denied claim. If there isn’t a good reason, then the insurer cannot deny the claim.

Your insurer must also provide documentation for the denied claim upon request. All reputable insurers provide documentation when denying your claim – like detailed information about why your claim was denied. They should send you a denial letter that quotes your policy language to explain the denial to you.

Unusually Long Investigation of Your Claim

Is your insurer taking a long time to investigate your claim? Is your insurer dragging out your claim or demanding excessive evidence with no apparent reason?

It could be a sign your insurer is acting in bad faith. When an insurer takes an unusually long time to investigate your claim, they could be delaying your claim in the hopes you’ll accept a reduced offer. Or, they could be trying to frustrate you, trip you up, or find some excuse to deny your claim.

Unusually Short Investigation of Your Claim

In other cases, the insurer takes too little time to investigate your claim and seems to not care about certain details of your claim.

Your insurer may have preconceived notions of the validity of your claim, leading them to conduct a basic investigation before denying your claim without good reason.

Insurers have an obligation to investigate claims. If the insurer doesn’t adequately investigate your claim within an ordinary length of time, your insurer could be acting in bad faith.

Reducing Your Payment Without Good Reason

You may have expected to get $100,000 for your property damage insurance claim, but your insurer only offers $25,000.

If the insurer provided a reason – like the damage was caused by a non-covered peril – then that may be valid. However, insurers who offer a low payout without providing a reason may be acting in bad faith. Like a denied claim, a reduced claim without good reason could be a lazy attempt by the insurer to save money.

Demanding Excessive Proof

You are required by law to provide proof of the insurance claim to your insurer.

You may provide photos, documents, receipts, videos, and other evidence proving the incident took place and on the date and time it took place.

However, when an insurer demands excessive proof, it could be a sign they’re acting in bad faith.

Insurers may demand excess proof when they’re trying to find a reason to deny or reduce your claim. They may be trying to frustrate you with a lengthy claim investigation. Or, they might make you feel like you’re guilty in the hopes that something turns up during the investigation – even if that thing has no relation to your claim.

Failing to Pay the Agreed Amount

Some insurers practice in good faith through the entire claim process – only to act in bad faith during the actual payment process.

Insurers may fail to pay the agreed amount on the date you expected, for example. Or, in some cases, insurers may fail to pay the settlement within a reasonable length of time at all. The insurer may be dragging its feet on sending out a payment.

In some cases, the insurer has a cash flow problem: if your insurer recently faced a large natural disaster over a large portion of its customer base, for example, your insurer may be struggling to pay all of the claims from policyholders in your area.

Delayed payments could be a sign you have a bad faith insurer – or your insurer nearing bankruptcy. Neither are good for the future of your insurance claim.

Threatening You in Any Way

When an insurer threatens you, it’s a sign your insurer is acting in bad faith.

Insurers may threaten to reduce your claim if you hire a public adjuster, for example. Or, they may warn you against getting a third party estimate for repairs to your home.

In these situations, the insurer is threatening you to protect their own best interests. They want to pay you as little for your claim as possible, so they threaten you and hope you don’t understand your rights as a policyholder.

Denying Your Request for Documentation

As a policyholder, you have certain rights under insurance laws. One of those rights is to receive documentation when you request it.

If an insurer denies your claim, for example, then you can request documentation explaining why your claim was denied.

If your insurer denies your request for documentation, then they may lack a good reason to deny or reduce your claim, which means they’re acting in bad faith.

The insurer may believe you’ll accept the denial or reduction of your claim at face value. Don’t let them think they’ll get away with it.

Attempting to Blame the Policyholder

Bad faith insurers may accuse the policyholder of insurance fraud, claim they failed to maintain their property, or reference multiple parts of the insurance policy to justify a lower payout.

When your insurer attempts to blame the policyholder without good reason for that blame, it’s a sign they may be acting in bad faith.

Their Claim Denial References Multiple Parts of Your Insurance Policy

Insurance policies are complicated, and most homeowners don’t fully understand what they mean. There’s complex terms, jargon, and legalese in your insurance contract.

Insurers may try to take advantage of this fact by referring to multiple parts of your insurance policy. They might assume you don’t understand your coverage, using complicated terms to justify a denied or reduced claim. They often use wording from your contents coverage to deny your dwelling coverage. Make sure you know where the wording is being pulled from in your policy.

Did your insurer cite multiple parts of your policy to justify denying your claim? They may be taking a “throw everything at the wall and see what sticks” approach, overwhelming you with complex terms to avoid paying your claim.

Check your policy thoroughly. Or, consult with a lawyer or public adjuster to verify the policy language.

Poor Communication & Long Response Times

On its own, poor communication isn’t a sign your insurer is acting in bad faith. Some insurers are busy or bad at communicating.

However, insurers have a legal obligation to respond to your concerns in a reasonable length of time. Insurers that fail to do that may be acting in bad faith.

When you contact your insurer to report a claim, for example, the insurer must process that claim within a certain length of time. The specific length of time varies from state to state: some states have a specific limit (like 30 to 60 days) while others simply require a “reasonable” length of time.

A Bad Faith Insurer’s Worst Nightmare: Clients Who Hire a Public Adjuster

Bad faith insurers don’t like when policyholders hire a public adjuster. It means they’re fighting back against their bad faith practices.

When you hire a public adjuster, you’re hiring someone to represent your own best interests in the insurance claim – not your insurance company’s best interests.

Your insurance company has an adjuster, and that adjuster’s role is to pay you as little for your claim as possible.

By hiring your own adjuster, you get someone in your corner representing your best interests. Someone that reads insurance policies every day. Someone that knows what to expect next in the claims process.

Your public adjuster can challenge your insurer’s estimates, negotiate with your insurer on your behalf, provide documentation proving every penny of damage, and fight back against bad faith practices.

Don’t let your bad faith insurer push you around or take advantage of your inexperience.

Schedule a free, no-obligations consultation with a public adjuster today by contacting ClaimsMate.

Article Source Here: 11 Signs Your Insurer is Acting in Bad Faith

How to Handle a Low Offer from Your Home Insurance Company: Proven Tips & Steps to Take

A lowball offer may be an attempt to take advantage of your inexperience. It might convince you that your claim isn’t legitimate, or that you deserve a reduced payout. Policyholders will often try to find the cheapest labor to match that approved amount. You should be able to hire anyone in that area, not just a jack of all trades. Professional roofing contractors and other general contractors are what you deserve as a policyholder.

Fortunately, there are proven ways to fight back against lowball offers from your insurance company. Keep reading to find out the steps to take after your insurance company’s lowball offer – and proven tips for navigating a low offer from your home insurance company.

Review your Policy

Before challenging your insurer’s offer, it’s best to understand your coverage from front to back.

Review your insurance policy to ensure you understand what’s covered and what isn’t. Make sure you understand any exclusions. Look up any terms you don’t recognize. Know that to maximize your claim, you have to understand the contract between you and your insurance company. This is what your insurance policy is… a contract.

Review your Insurance Company’s Reason for the Lowball Offer

Generally, your insurer will provide documentation to justify the low offer. They may claim certain damages occurred because of an excluded peril, for example, or that other damage was caused by poor maintenance or “wear and tear” on your property due to age.

Review your insurance company’s documentation and compare it to the information in your insurance policy. Is there a justifiable reason for the denial? Most public adjusters know the difference between “wear and tear” and new damages and they know how to prove it to your insurance company.

Document Everything and Re-Approach Your Insurer

To receive a fair amount for your insurance claim, you need to provide evidence of the condition of your property and after the loss, along with the cost of restoring your property to pre-loss condition. If you fail to provide evidence, your insurer may send you a low offer.

Start by listing pre-loss conditions for your home. What condition was your property in before the loss? How much was your property worth before the damage occurred?

To justify the pre-loss condition for your property, use evidence like the following:

• A house appraisal
• A home inspector’s report
• A recent assessment of your property – say, if you just refinanced
• The listing for your home
• The original house plans

Then, document any costs you’ve put into your home – including repairs or renovations before and after the loss:

• Invoices from independent contractors
• Receipts for repair or replacement materials from the hardware store
• Any other costs you paid before the loss to increase the value of your home
• Any other costs you paid after the loss to repair the home to pre-loss condition

Once you’ve organized all this documentation, send it to your insurer. If you genuinely have good evidence of a legitimate claim, then your insurer will struggle to deny or reduce your payout.

Remember: the more evidence you can provide, the better. The trick is knowing when to provide this evidence so that you don’t complicate your claim or cause it to go to the bottom of the pile. Some adjusters get over worked and tend to close the claims that are the easiest to close.

Watch for Warning Signs of a Low Offer

One of the problems with a low offer is that it may not seem like a low offer.

In fact, many insurers dazzle you with a number that seems big in the hopes that you’ll accept the offer and close the claim quickly. In reality, the insurer wants to limit its liability as much as possible.

Warning signs of a low offer include:

1. The insurer failed to sufficiently investigate the claim, taking very little time to determine the facts of the claim.
2. The insurer ignored certain damages or left damaged areas of your home out of their initial estimate.
3. The insurer company repeatedly asks you to accept the offer or tries to convince you that this is the best offer you’ll get.
4. The insurer asks you to get three quotes or estimates from contractors right after a storm or catastrophic event. They will always accept the lowest of the three and that contractor has often underbid the job in order to get your business. They always come back with additional charges later and your insurance company might not approve them, leaving you with an unfinished repair and no additional money to make those repairs.
5. You are unable to hire most licensed and insured contractors that you speak with for the repairs.

3 Dangers of a Lowball Insurance Claim

A lowball insurance claim offer means less money to repair and recover after a loss. However, it can also complicate many aspects of your claim – and even compromise the future of your house.

Some of the dangers of a low insurance company offer include:

• Being forced to cut corners on parts and labor. If your insurer paid $5,000 to repair your roof but your roofer tells you it will be $20,000, then you may be tempted to use cheap parts or labor. Cutting corners on repairs could compromise the structural integrity of your home. Cheap roofers often don’t install the roof correctly and then if there is damage again, the insurance company will deny the claim for an “improper install”.
• Difficulty finding contractors to do the work. If your insurer insists it costs $2,000 to replace your floors but contractors are quoting you $10,000, then you may struggle to find a contractor to do the work. You are often left with unskilled labor and unfinished repairs.
• Paying out of pocket when the insurer should rightfully cover everything. Ultimately, a lowball insurance claim could force you to pay out of pocket for repairs that would normally be covered. You pay for home insurance, and you deserve the payout you paid for.

Other Steps After a Lowball Offer: What Are My Options?

What are your options after a low insurance offer? What can you do to push back against your insurance company?

Step 1) Review your claim. Check your policy’s coverage, then check your claim and the reasons justifying your lowball offer. Before you file a formal dispute with your insurer, you need to ensure you understand everything about your claim from start to finish. There could be a legitimate reason for the denial or lowball offer – like documentation your insurer failed to receive.

Step 2) Ask for your insurer to review your claim. Contact your insurance company’s adjuster and ask them to review your claim. The adjuster may have made a mistake, missed a crucial piece of evidence, or failed to add a certain amount of damage to the claim. The insurer may re-send the original adjuster to your property to review the claim. Or, they could send a new adjuster or a building consultant.

Step 3) File a formal dispute against your insurer. If you’re still unhappy with the way your claim was handled, then file a formal dispute against your insurer. All insurers have a formal process for handling disputes. The dispute process may involve hiring a third party, pushing your claim to someone with higher authority (like a manager), or completing a full review of your claim.

Step 4) Hire your own public adjuster. A public adjuster could double or even triple your insurance payout by spotting items your insurer missed – or deliberately ignored. Public adjusters are trained insurance industry professionals who work on your behalf and represent your best interests. A public adjuster can review your claim, assess damages, write legitimate estimates and negotiate with the insurer on your behalf for a higher settlement.

Step 5) File a complaint with your state. If you’re still unhappy with your insurance company, then file a complaint with state authorities. Each state has its own insurance commission, and this insurance commission handles complaints from insurers across the state.

Step 6) Consider hiring an attorney. If you still haven’t experienced a resolution to your claim, then consider hiring an attorney. An attorney can explain the pros and cons of suing your insurer, along with the likelihood of winning your case. Be prepared to wait for the settlement for over a year in most cases. This should be your last step, when all else has failed.

Hire a Public Adjuster to Fight Back Against a Low Offer

Dealing with all of the steps above can be intimidating – especially if you’ve never dealt with a major homeowners insurance claim before.

Fortunately, help exists in the form of public adjusters.

Public adjusters work on your behalf – not your insurer’s behalf. They negotiate with your insurer on your behalf to obtain a higher settlement.

A public adjuster can:

• Identify the intricate details and coverages of your insurance policy and use your policy language to your benefit
• Provide proof of these damages in a timely fashion to your insurance company to maximize your coverage and payout
• Demand that your insurance company make a full payment for your loss within the time frames allowed by state laws
• Write a valid repair estimate that will include all proper repair methods so that you have enough money to cover skilled labor
• Document everything and manage the rebuilding or repair process to ensure a smooth claim from start to finish

Discover how a public adjuster could help you obtain the highest possible payout for your insurance claim.

Contact ClaimsMate today for a free consultation with a public adjuster.

Read Full Article Here: How to Handle a Low Offer from Your Home Insurance Company: Proven Tips & Steps to Take