Many people assume their insurance coverage will fully protect them when disaster strikes — after all, you’ve been faithfully paying your premiums for years, maybe decades, without a claim. Unfortunately, that assumption can be costly. One industry expert said, “When it comes to insurance, ignorance is not bliss — it’s a recipe for financial disaster.”
Insurance policies, adjusters, and settlements often work differently than policyholders expect when it comes to getting the cost of home damage restoration services. This article outlines how homeowners, landlords, property managers, such as HOAs or facility supervisors, and business owners can protect themselves from underpaid claims, unexpected expenses, and unnecessary stress by avoiding a handful of common misconceptions.
Everyone Needs to Know How to Work With Your Insurer
This article is for homeowners, landlords, property managers, and business owners who want to:
- Better understand the details of their insurance policy.
- Avoid being caught off guard during a claims process.
- Learn how to advocate for themselves when dealing with an insurance company or adjuster.
- Protect their property and financial well-being with accurate information.
By knowing what to expect and how to communicate with your insurer, you’ll be better prepared to protect your investment, avoid costly surprises, and secure a fair outcome if you ever need to file a claim.
Reasons Why Your Insurance Claims Might Get Denied
No one likes to think of themselves as naive or easily fooled, but putting too much trust in your home insurer’s advice can cost you dearly. However, you can defend yourself by avoiding a handful of common misconceptions.
Misconception 1: Insurance Companies Have Your Best Interests at Heart
Many believe their insurance company will prioritize their well-being and provide full support when disaster strikes. After all, they’ve paid premiums faithfully for years — why wouldn’t the insurer be ready to step in?
Insurance companies are profit-driven organizations. And while your insurance adjuster might be seeing you on the worst day of your life, that doesn’t mean they will be easy on you or take your side. On the contrary, their goal is to protect the bottom line, minimizing payouts on claims whenever possible. This doesn’t necessarily make them malicious, but it does mean their interests may not always align with yours.
As a policyholder, the best way to protect yourself is to read your policy carefully, keep good records, and don’t assume the insurer will pay fairly just because you’ve been a loyal customer. If your claim is delayed, underpaid, or denied, seeking professional advice from an attorney, appraiser, or public adjuster may be necessary to protect your rights.
Misconception 2: Understanding Insurance Policies Is Straightforward
On the contrary, insurance policies are complex for the average person to understand. Legal jargon, evasive answers, and phone calls that are never returned stack the deck against the homeowner in need. Even highly diligent property owners can overlook critical details about what is and isn’t covered. Too often, those gaps are only discovered after a claim is filed — when it’s too late to adjust coverage.
To avoid this trap, review your policy before you need it. Ask for clarification on unclear sections, and educate yourself on key requirements for filing a claim. Doing this work upfront prevents unpleasant surprises and reduces the chance of financial loss later.
Misconception 3: Insurance Adjusters Are on Your Side
When policyholders meet with an insurance adjuster, they often assume the adjuster is there to help them through the claims process. While adjusters may present themselves as friendly and supportive, their role is first and foremost to protect the insurance company’s interests.
An adjuster aims to settle claims quickly and for as little money as possible. This can leave policyholders with payouts that don’t fully cover their damages. While not every adjuster is unfair, relying solely on their assessment can be risky.
Regarding appraisers and insurers. “Trust but verify” is a good approach when dealing with your insurer and getting claims approved. If the damage and restoration are significant, get a second opinion from an independent expert. Professionals, like a public adjuster, an attorney, or an appraiser, can work on your behalf and help ensure your claim is valued fairly. Advocating for yourself is the only way to guarantee you receive the compensation you deserve.
Misconception 4: Insurance Settlements Always Cover the Full Cost of Damages
Many assume the resulting settlement will fully cover every repair bill once they file a claim. Unfortunately, this is often not the case. Insurance companies use many tactics to limit financial liability. They may undervalue claims, exclude certain types of damage, or apply high deductibles that leave you with significant out-of-pocket costs. The result? Many property owners are shocked when their “covered” losses don’t translate into a sufficient payout.
The best defense is meticulous documentation. Photograph all damages, keep repair estimates and invoices, and organize every piece of evidence that supports your claim. Presenting a clear, comprehensive record strengthens your negotiating position and makes it harder for the insurer to undervalue or deny your claim.
Misconception 5: Filing a Claim Will Always Affect Your Insurance Rates
Finally, one of the most common fears is that filing a claim will automatically cause insurance premiums to rise. While rates can increase in some situations, filing a claim doesn’t always lead to higher costs — and avoiding a claim out of fear can leave you financially exposed.
When legitimate claims are filed and repairs are completed, your property is often in better condition than before. In fact, this reduced risk can be attractive to insurers. More importantly, filing a claim is your right. If you don’t use your insurance when you need it, the purpose of paying premiums is defeated.
Protect Your Property and Your Rights in the Insurance Process
Understanding the truth behind these misconceptions is essential for every property owner. Knowing that insurance companies and adjusters prioritize their bottom line, recognizing the complexity of policies, and documenting damages thoroughly puts you in the best position to secure a fair outcome.
Insurance is meant to provide peace of mind — but only if you understand how it works. Stay informed, ask a lot of questions, and advocate for yourself. Doing so ensures you’re ready to navigate the insurance process confidently when disaster strikes.
Fire and Water Restoration Services in Denver
When a fire or flood hits your home, it puts you in crisis mode. You need to find trustworthy people to help restore your home to normal. Your first step will be to mitigate the damage and then call your insurance company. But this is where you need to be cautious.
It’s common for a contractor to be on a ‘preferred list’ and primarily serve the insurance company. On the other hand, Advanced 24/7 Restoration works only for you — documenting every detail, advocating on your behalf, and ensuring all necessary repairs are completed thoroughly and safely. With emergency response available day or night, our experienced team helps you recover quickly and confidently after fire or water damage.
If you have experienced home damage, such as fire, flood, or mold infestation, contact Advanced 24/7 Restoration. We respond 24/7 to your emergency. Contact us online or call us directly at (720) 722-4777. We’re here to help when things don’t go as planned and to guide you every step of the way.
Advanced 24/7 Restoration’s mission is to provide unparalleled care and support to our valued clients. Delivering the best solutions for your property restoration needs. Our vision is to be the top-rated damage restoration company in Denver, known for our exceptional services, professionalism, and dedication to customer satisfaction. Water damage, fire damage, flood damage, and more.