How long will it take for my insurance claim
to be settled?
Everyone wants the process to be done as fast as
possible so they can return to a normal life.
If there’s substantial damage involving your home and
property, an insurance claim is not going to be closed
with a single payment. There will be claims payments
for various parts of your claim as the rebuilding
process moves along. Most people find it takes at
least 18 to 24 months to repair/rebuild their home and
replace their possessions after a major disaster. Your
insurance claim will stay open until the insurer has
made all payments you’re entitled to under your policy.
You should feel free to contact your insurance
company or adjuster for a status on your claim at any
time during the claims process.
What if I’m not satisfied with the amount of
my insurance settlement?
• Your settlement won’t necessarily be the
same as your neighbor’s. Your coverages,
deductible, and policy limits may be different
even if the damage looks the same.
• If the insurance company denies any part of
the claim, ask for the denial in writing. Keep all
paperwork.
• If you don’t believe the offer is fair, call the
insurance company. Be prepared to explain
why you think the offer is unfair. If you’re not
satisfied with the response, contact your state
insurance department.
What if the insurance company doesn’t agree
with the public adjuster’s or my contractor’s
estimate of the damage?
Differences in construction estimates are common.
Ideally, you and the insurance company should reach
agreement on a “scope of loss”. This is a detailed list
of the quantities of construction materials, labor,
profit and overhead, building code compliance, and
every single item required to repair or rebuild your
home.
Once you’ve submitted all the information that your
insurance company needs, including written estimates
from contractors, the adjuster will calculate the total
cost.
If you disagree with the claim amount the adjuster
has calculated, there are different ways to settle that
disagreement without going to court. Two ways are
appraisal and arbitration.
Appraisal: If you can't agree with your insurance
company about how much it will cost to rebuild your
home and/or repair or replace your property, you can
use the appraisal process to resolve the differences.
This isn't the same as an appraisal you may have of
your home's value.
The appraisal process begins with two appraisers
comparing their estimates. The appraisal process
only determines costs, not if your policy covers these
costs. It isn't a court proceeding.
If you use the appraisal process, you'll have to pay
some of the costs. What you'll have to pay will
depend on your state's law.
If your policy has an appraisal clause, you must go
through the appraisal process before you can sue
your insurance company.
Arbitration: Arbitration is a legal process, but you
don't have to go to court. In an arbitration hearing, a
neutral third party (arbitrator) hears from both you
and your insurance company. Both parties agree to
accept the arbitrator's decision. Usually the decision
is binding so you can't go to court to appeal the
decision.
Some insurance policies require arbitration to settle
differences. Other policies will say how arbitration
will work if both you and your insurance company
agree to use it. If you use arbitration, you'll have to
split the cost with the insurance company. But,
some state laws may require you or your insurance
company to pay the full cost if you aren't successful.
What can I do if my claim was denied?
If you think the insurance company should have paid
your claim, you can use arbitration or file a lawsuit to
get the insurance company to reverse its decision.
But, before you do any of those, contact your state
insurance department for help.
Some states may have a mediation process that you
can use. Contact your state department of insurance
for more information.
9