Common Misconceptions about Filing a Property Damage Claim

Property damage occurs in a variety of contexts. Some people lose their home in a hurricane or tornado, while others will sustain serious damage after a fire breaks out or a pipe bursts. Regardless of how the damage happened, it’s important to approach filing a property damage claim in the right way. You have paid insurance premiums for years—now is the time to get help when you need it most.

Unfortunately, many misconceptions abound regarding how to file a property damage claim. At Insurance Claim HQ, we believe in empowering the public to stand up for themselves. In this article,  property damage claim lawyers in New Orleans identify some key misconceptions about how to file a claim. We encourage you to reach out to us if you want further information or hands-on assistance. We have won millions for our clients in these disputes.

Misconception #1: You Can Delay Reporting a Loss to Your Insurer

This is wrong. You should contact them immediately. Your insurance contract might even contain precise language about how much time you have. It’s also a mistake to assume you don’t need to report because your insurer should know a hurricane ripped through town. The responsibility always lies with the policyholder to report damage to their insurer.

Misconception #2: Your Insurer Will Treat You Fairly

We hope this is true. As experienced property loss attorneys, however, we have seen the industry take advantage of unsuspecting policyholders. The insurance industry is a business, just like any other, and unfortunately, sometimes their profits are the only thing the insurance company is concerned with. This can lead to jacking up premiums and even denying claims.  

You need to advocate for yourself. A property damage claim lawyer is a terrific asset to have. Only your legal team is looking out for your best interests—the insurer is looking out for themselves.

Misconception #3: All Insurance Contracts Are the Same

Insurers write individualized policies for their clients. Your sister down the street might have a policy with the same company that provides greater or lesser protection than your policy. Don’t assume your policy covers a specific loss. Instead, read the document.

Here’s an example. Some insurance policies will pay if you need to move out of your house and rent a hotel room. But some of them don’t.

Misconception #4: All Property Damage is Covered by Insurance

Insurance contracts spell out in detail what types of perils are covered. For example, your contract might have an exclusion for wildfires. Any loss stemming from wildfires would not be covered by your insurance.

Further, standard homeowner’s insurance does not cover flood damage, even after a hurricane. You will need flood insurance from the federal government if your home sustained flood damage from storm surge.

It’s vital to dust off your insurance policy and read what is covered and what isn’t.

Misconception #5: The First Settlement Offer is the Best Offer

Insurers definitely want you to believe this. Your claims representative might tell you, “This is the best we can do!” Our lawyers know better. Often, the first offer is simply the opening bid for what should be back-and-forth negotiations. Think of settling an insurance claim like negotiating the price of a used car. The used car salesman doesn’t give you the best deal right up front. You have to work for it.

Furthermore, you have no obligation to accept the first offer. You should analyze whether it fairly compensates you for the cost of repairs.

Misconception #6: Your Premiums Will Jump if You Submit a Property Loss Claim

Let’s be honest—sometimes that does happen. However, it’s also true that your premiums will jump even if you don’t make a claim. In fact, if you are reading this in Louisiana, it is likely your homeowner’s and/or flood insurance has jumped quite a bit over the past few years. In 2023, most people with insurance policies saw an increase of over 60%–in one year!

Insurance companies set premiums based on many factors, including the number of claims filed in your area. You should make a claim if you have suffered a significant loss which you can’t cover otherwise. Why worry about increased premiums when you are staring at large amounts of property damage with no ability to pay for it to be fixed? It’s time to tap that property damage insurance policy so you can rebuild.

Misconception #7: A Public Adjuster Can Negotiate for You

Louisiana law clearly excludes the power of a public adjuster to negotiate a claim on your behalf. They would be breaking the law if they negotiated on your behalf with your insurer.

Public adjusters have their place. They excel at calculating the cost of repairs or other losses, such as business interruption. Our firm has worked with public adjusters. Unfortunately, they cannot negotiate for you or even contact the insurance company.

You should hire a property damage claim lawyer to negotiate on your behalf after a storm. A lawyer knows how to get your deserved compensation from the insurance company. Our firm will amplify your voice and make sure your insurer treats you fairly.

Misconception #8: Insurance Company Investigations Can Take Years

That’s rarely true. Even after a major storm, insurance companies need to be prompt in their investigation of a claim. Louisiana law doesn’t allow them to drag their feet, refuse to return phone calls, or otherwise ignore your claim. It’s insurance bad faith for them to treat policyholders in this manner.

Give us a call if you feel like you’re slamming your head against a concrete wall and getting nowhere. Louisiana law empowers policyholders to bring bad-faith insurance claims when their insurers use underhanded tactics. Just the idea that they might get sued can prompt an insurer to pick up the pace and approve your claim.

Misconception #9: Insurance Companies Will Drop You if You Fight a Claim

This is very rarely the case. Insurance companies will not just drop you just because you challenge their initial settlement offer. Standing up for the full compensation you’re entitled to is your right as a policyholder.

 At Insurance Claim HQ, we’re here to help you understand your rights and how the process actually works. Don’t let fear of being dropped keep you from fighting for the proper compensation. Schedule a consultation with us to learn how we can assist you. With the right approach, you can get the coverage you deserve without jeopardizing your policy.

Misconception #10: If Your Settlement is Too Small, You Can Come Back for More

This might be one of the most damaging misconceptions about property damage claims. Once you agree to a settlement, you’ll give up the ability to seek additional compensation from the insurer for that incident or storm. So you must focus on getting all that you can before you say, “I agree” to any settlement offer. You get one chance, not two or three.

We strongly recommend that you meet with Insurance Claim HQ before you review a settlement with an insurer. Never agree to any offer until you have a lawyer.

Speak with a Property Damage Claim Lawyer Today!

We are happy to discuss your claim, wherever you find yourself in the process. Did a fire just hit? Call us and we can discuss how to submit a solid claim to your insurance company. Were you unhappy with the first offer? Give us a call. We can take over the negotiations for you and relieve stress. Our initial consultations are free.