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Everything You Need to Know About Underpaid Claims

Underpaid Claims - Affiliated Adjustment Group - NYC

Commercial insurance claims are complex and daunting, especially in cases where insurance adjusters try their best to limit the compensation for property damage. Therefore, you must do your due diligence to understand underpaid claims to ensure you’re fairly compensated for damages.

Let's explore everything you need to know about underpaid claims, the roles of public adjusters, and actions to maximize your insurance loss recovery.

What is An Underpaid Claim?

Underpaid claims happen when an insurance company provides a payout much less than the actual cost, damages, or losses. This can stem from various factors like misinterpretation of policies, overlooked damages, or inaccurate assessment. It can lead to financial shortfalls, specifically in property damage or large-scale commercial cases.

What Causes Underpaid Claims?

Policy Misinterpretation refers to the coverage limits that result in insurance adjusters denying or underpaying claims that the company should fully cover.

Insufficient Documentation

Insufficient documentation and limited evidence can lead insurers to question the validity of claims, resulting in a lower payout.

Employed Delay Tactics

Insurance companies use delayed tactics such that the policyholder accepts lower settlements due to frustration or desperation.

Inadequate Damage Assessment

An insurance adjuster failing to conduct a thorough damage assessment will lead to an undervalued claim.

What is the Role of Public Adjusters?

Public adjusters are licensed professionals (just like an insurance commissioner) representing policyholders in the insurance claim procedure, unlike insurance adjusters who work for a specific insurance company. Additionally, public adjusters work to ensure that the client receives maximum settlement. Here are some key advantages of hiring a public adjuster:

Handling Claims With Expertise

Public adjusters are experts in handling insurance claims like commercial claims and property damage.

Exceptional Negotiation Skills

They negotiate on behalf of the policyholders, achieving a reasonable and equitable settlement.

Correct Policy Interpretation

They deeply understand insurance policies and identify coverage, leaving no chance of misinterpretation by the insurance companies.

Thorough Damage Assessment

They conduct thorough damage assessments and ensure all the losses and damages are documented correctly. 

How to Address Underpaid Claims

The first step is to review your insurance policy to understand limits, exclusions, and terms; this helps determine the extent of your underpaid claim. The next step is to gather all relevant damage documents, such as repairs, receipts, estimates, or any correspondence to the insurance company; this helps substantiate the claim.

The most crucial step is to hire a public adjuster to review and advocate the claim; this helps increase the chance of a fair settlement. The last step is to file a reconsideration request with the company and provide evidence; this helps make your claim strong.

Claims Adjustment In NYC

Dealing with underpaid claims is challenging and frustrating; however, if you understand the causes, leverage experts like public adjusters, and follow a strategic approach, it can help resolve the problem. Whether you're handling commercial claims or property damage, being informed and strategic is the key to a successful insurance loss recovery! For further information, visit Affiliated Adjustment Group for consultation and expert advice.


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