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Natural disasters have been impacting communities across the nation, from wildfires in the Western states to tornadoes and severe flooding in the South. As hurricane season approaches, the aftermath of these events often brings individuals into contact with their insurance companies and claims adjusters, who play a critical role in the recovery process.
Here are three common scenarios you might encounter with your claims adjuster, along with insights into their perspectives during these challenging times.
1. After a Fire
Facing a devastating fire that threatens your home can be an overwhelming experience. Once the crisis subsides and you find temporary shelter, the reality of the loss sets in. Your initial conversation with the insurance adjuster might resemble this:
You: I can’t believe everything is gone! I need you to start the rebuilding process immediately. Just send me the maximum amount from my policy! The fire is out; let’s get moving so I can restore my home before contractors get busy.
Claims adjuster: I’m truly sorry for what you’ve lost. Let’s begin by gathering necessary information and find a way to assist you during this difficult time.
What the claims adjuster is thinking: I can only imagine how hard this is for you. However, you want to start building immediately? The reality is, there is still debris to clear and a proper assessment to make, which can take a significant amount of time. It’s crucial to adhere to our policy requirements before attempting to disburse funds. Take a moment to breathe; you are safe, and thankfully, you have coverage. There will be plenty of contractors willing to assist when the time comes.
2. After a Storm
Experiencing the aftermath of a tornado can leave homeowners in shock. The destruction can be extensive, and your immediate inclination may be to seek swift resolutions.
You: This weather was unbelievable! A tornado just tore through my house! I can’t even think about living there again. Can’t you just write me a check and take the house?
Claims adjuster: I’m deeply sorry to hear about this. It must be incredibly traumatic to have gone through such an ordeal. Let’s review what your insurance policy covers regarding this loss.
What the claims adjuster is thinking: While I understand your frustration, it’s not feasible to hand over your house in exchange for insurance money. You still have a mortgage, and your lender would definitely raise concerns about losing your home and using the insurance payout in that way.
3. After a Flood
Prolonged rainfall can lead to significant flooding, affecting homes in various ways. Once the water starts infiltrating your space, the situation can become dire.
You: My entire house is flooded! Water has risen above furniture, and I’m glad I have homeowners insurance to cover this damage.
Claims adjuster: I’m truly sorry for your situation. However, flood damage is generally excluded from standard homeowners insurance policies. You need flood insurance for such scenarios, which can be procured from FEMA or an agent. Would you like help locating resources for potential financial assistance?
What the claims adjuster is thinking: It seems you may not have reviewed your insurance policy prior to this event. Flood exclusion is a common term; I can’t be held accountable for the details within the policy. Please refrain from directing your frustration at me—I’m here to assist as best as I can.
What can be drawn from these interactions? It’s essential to maintain realistic expectations about what your insurance company can offer and the time it may take. Recognize the limitations of your policy, which is intended to restore rather than merely compensate. Understand the specifics of coverage so there are no surprises during claims processing, and always approach the claims adjuster as a partner in your recovery, rather than an adversary.
For more insights on navigating insurance policies, visit KarlSusman.com.
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This article reflects the views of the contributing adviser and not the editorial staff. For verification, adviser records can be checked with the SEC or FINRA.
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