Common Misconceptions about Insurance Claims
1. Your insurance company will freely divulge everything that your policy will pay you.
2. You have read and completely understand your insurance policy.
3. All insurance company adjusters are knowledgeable, experienced professionals.
4. Your insurance company is on your side.
5. You have the time, knowledge and experience to successfully negotiate all portions of the claim on your own.
6. The assigned insurance company adjuster will devote most of their time to your claim.
7. The “Preferred Contractor” sent by the insurance company is working for you.
8. You know how to estimate the value of your loss.
9. You must rebuild your home on the same site, with an identical home, as the one you lost.
10. It’s a good idea to start reconstruction as soon as possible because your insurance company will have to pay for any work you’ve done.
11. If you have a Replacement Cost Value policy, you will automatically receive whatever it takes to replace your property.
12. The value of your recovery is based on the cost of the new to-be-built property.
13. If you have a Replacement Cost Value policy and you experience a total loss, you will automatically receive the limits of your policy.
14. When the insurance company says that their Preferred Contractor will fix it for their estimated amount, this is the same as saying they’ll address all damages to your property for this estimated price.
15. “Guaranteed Replacement Cost” coverage actually means “guaranteed replacement” cost.
16. All water damage is covered.
17. Damage from Arson is automatically excluded from coverage.
18. Jewelry, watches and furs are automatically limited to $2,500 in coverage.
19. You shouldn’t hire a public adjuster because your insurer will cancel your policy.
20. All water damage is excluded from coverage.
21. If your adjuster threatens that the company will cancel your policy, you should back down on your demands for fair and equitable compensation of your claim.