AFTER a large loss, claiming insurance benefits for damaged homes or buildings, can become a full time job. Months, or even years, may have to be spent attending to the damaged property. These may involve speaking with various service providers like contractors or experts, answering questions from investigators, speaking with and writing to insurance adjusters, and filling out and submitting various paperwork.
In the addition to the significant time the insured may spend in pursuing the claim, he or she may also have to pay out-of-pocket for expenses incurred while preparing the claim. Such expenses may involve the use of additional professional services like damage restoration contractors, air quality testers, engineers, forensic specialists, and others.
Depending on the provisions of the policy, the insurance company may not reimburse the insured for these added expenses. The insured will, therefore, have to negotiate with the insurer to get these expenses paid. Given our experience in representing insureds against insurance companies, we found the following recommendations helpful in negotiations. These are from United Policyholders, a non-profit organization that provides information resources for insureds:
1. Document every communication with the insurance company in a notebook or diary. Write down dates, times, names, and subject of call. Confirm in writing all conversations, particularly if an agreement or understanding has been reached.
2. As part of documentation, keep all invoices, bills, and records of expenses related to the losses, including those for property repairs and replacement. Keep the receipts for the costs paid for charges to recover old records or request new ones. When noting down the costs that are related to the loss, also indicate why they were incurred, and how they related to the loss.
3. Keep track of all charges incurred when hiring professional services. Appraisers may be hired and written appraisals or estimates of the current value of items like artwork, jewelry or collectibles may have to be procured.
4. If you spent a lot of time preparing your claim and lost hours that you could have spent working on a livelihood, thus decreasing your income, track and note down all the hours spent. Gather proof to show that you would have been earning money if you had not been spending time preparing your claim.
5. Make the specific request to be reimbursed for claim preparation expenses. The insurance company will likely deny the claim but the insured should be persistent. By providing good, solid documentation of these additional expenses, the insured stands a better chance of succeeding.
Depending on how a policy is worded, the insurer may reimburse claim preparation expenses if:
a. The insurer had asked or required the insured to do the work or to incur the expense.
b. The expense had to be incurred in order for the loss to be accurately measured.
c. The insurer changed their settlement offer based on information that that the insured spent money and the time providing to them.
d. The insurer was not fully investigating the loss or making a fair settlement offer so the insured had to take steps to get the job done right by seeking additional professional services to assess the damage.
Then again, if significant damages are involved, it might be smarter and ultimately more time-efficient to immediately consult with an insurance attorney. Collecting the full benefits under an insurance policy may involve interpretations of technical provisions in the insurance contract. By seeking experienced legal help, insureds can focus on the more important task of rebuilding their lives after a loss.
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C. Joe Sayas, Jr., Esq. is an experienced trial attorney who has successfully obtained significant results, including several million dollar recoveries for consumers against insurance companies and big business. He is a member of the Million Dollar-Advocates Forum—a prestigious group of trial lawyers whose membership is limited to those who have demonstrated exceptional skill, experience and excellence in advocacy. He has been featured in the cover of Los Angeles Daily Journal’s Verdicts and Settlements for his professional accomplishments and recipient of numerous awards from community and media organizations. His litigation practice concentrates in the following areas: serious personal injuries, wrongful death, insurance claims, unfair business practices, wage and hour (overtime) litigation. You can visit his website at www.joesayas law.com or contact his office by telephone at (818) 291-0088.
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