As many of you know, the claim settlement process can be a difficult and winding road. That’s why finally getting that settlement check from your homeowner’s insurance company feels so good! Not only are you about to get your life back on track, but you also are done with that exhausting procedure.
Or are you?
What many people don’t know is that getting your settlement isn’t always the last step of the process. In fact, after receiving the claim settlement, most people are still bewildered and left with even more questions than they had before. Why isn’t my settlement as high as I thought it was going to be? Why did I get three checks? Why did I not get a check at all?
To help clear up the confusion and answer some of our most-asked client questions, we’ve put together a guide to walk you through what happens during the claim settlement process and why.
What May Happen During the Claim Settlement Process
Multiple Payments
It is common for you to see multiple checks in the mail when you get your insurance settlement. This is because a larger claim can impact different areas of your policy. One individual claim might hit your homeowners insurance, while one might hit your property insurance or car insurance. Insurance companies want to categorize these payments to keep track of them, which means you may receive multiple different checks for varying amounts. Once you receive your checks, total them all up to make sure you have received the entirety of your settlement payment.
Direct Contractor Payments
Depending on the situation, your homeowner’s insurance company might end up paying your contractor directly. This is usually done on the contractor side of things and is done to avoid having you be a middleman between the contractor and the insurance company.
This can be a nice perk since then you don’t have to deal with your insurance company either. However, a word of warning—once the project is done and the contractor is paid by the insurance company, there is no going back.
If you later find that the repair wasn’t completed to your satisfaction, you may have to pay out of pocket. Educate yourself on the repair taking place to ensure it looks or is fixed as desired before giving your final sign-off.
Item Replacement
Unfortunately, you can’t just take that nice big check and do whatever you want with it! You need to use that money to replace exactly what was lost.
This is especially true when property is lost from a major event like a fire or flooding. If you lost a couch, you must use that money for a new couch—not a trip to Vegas. Did your television get destroyed? Then you must use the settlement towards that.
Most insurance companies will even ask you for receipts (so keep those) to prove you used the settlement money accordingly. Failure to do this is a violation of your policy and could leave you with a lawsuit from your insurance company asking for their money back.
Housing Reimbursement
In the case that your property was damaged to the point where it’s unlivable, or necessary repairs are being made that require you to vacate, you will need to find somewhere else to stay, possibly for an extended period. However, it’s not always feasible to stay with friends and family. If you find yourself in this situation, make sure that your insurance company is helping to cover the costs of a rental or hotel room. Most policies do include this, but many people either don’t know about it or forget to ask.
Initial Settlement Negotiations
Luckily, you don’t have to accept the first amount of money that your insurance company offers you. Once you receive your settlement, make sure you go back and carefully review everything. Keep an eye out for inaccurate information or small mistakes. There is still time for you to go back and talk to your insurance company if an error is detected or if you feel you received too small a payment. This may involve restarting the claim process, but a public adjuster will be more than happy to assist you in filing the claim again and negotiating an accurate settlement.
Help Navigating Your Claim
Have more questions about the claim settlement process? Then contact us today. At Fortitude Public Adjusters, we want to help you navigate the confusing world of insurance policies, and ensure that you’re getting the rightful compensation you deserve.
