After a hurricane or other storm that causes wind damage, insurance companies often dispute the scope of damage and underestimate the cost of repairs, so it is important for policyholders to understand their options when an insurer’s estimate does not reflect the full value of the loss. If you live in Florida or anywhere within the eastern U.S., you’ve seen the destruction that can be caused by big storms. While flooding captures a great deal of the attention, insurance companies know that for most people, wind damage is a much more prevalent risk.
There are many factors that impact the way an insurance company values your loss and steps you can take to protect your rights with respect to your home or business property. Some of the most important actions should be taken well before storm damage occurs to keep yourself prepared. Here we explore the reasons wind damage is frequently undervalued and what you can do to avoid or resolve insurance problems in these situations.
What Makes a Wind Damage Claim Difficult to Value Appropriately?
In our experience, some of the most common reasons it is hard to get a proper valuation of wind damage are:
- It can be difficult to determine whether damage was caused by a storm or age deterioration
- Unless the property owner has before and after photos for comparison, it is difficult to assess the condition of the property before the damage
- If wind caused rainwater to enter the premises, that water may be hard to distinguish from floodwater, which is not covered
- It can be hard to determine how much material needs to be replaced, particularly if the old material cannot be matched
- Poor maintenance can lead to damage or make it worse, so insurance adjusters will claim much of the damage is the property owner’s fault
The fact is that property damage does not occur in a vacuum, so it is usually a combination of factors that leads to material failure. Insurance companies look to causes that aren’t covered before considering those that are covered under the policy.
How Do Insurance Companies Undervalue Claims for Wind Damage?
While insurance companies can sometimes get creative in their efforts to avoid paying out on claims, we’ve seen four primary reasons they end up with an estimate far below the appropriate value.
What Can They Blame Besides the Wind?
While most damage is caused by a combination of factors including coastal wind, insurance companies will frequently attribute damage to everything except wind. They will claim that shingles broke and came off because they were old or damaged by something that happened earlier.
It is important to establish a connection linking the storm to the damage. When you take photos of your property regularly, they provide proof of the condition before the storm and make it harder to claim that damage was due to poor maintenance or preexisting conditions.
How Closely Did They Look for Damage?
A surface inspection often does not reveal the full extent of damage. Some damage may be hidden, or wind damage could have led to damage elsewhere that needs to be traced to be revealed, such as when wind breaks windows and allows water to enter. It is a good idea to have a thorough inspection of the roof and structural components to identify water intrusion and interior damage.
How Is the Insurer Estimating Repair Costs?
Estimates for repairs are based on materials and expected labor costs, but they all hinge around the core issue of what the scope of the work should be. The estimate will, of course, be too low if the amount of repairs is insufficient. But the estimate will also be unrealistically low if the cost of labor and materials does not account for the increases that occur after a major storm, when these commodities are in short supply.
Can They Find a Reason Coverage is Excluded?
Insurance companies love to find exclusions and limitations, as well as provisions that raise your deductible in the particular situation at issue. Sometimes, they apply these provisions in a way that extends beyond a reasonable reading of the contractual language. It is important to read the terms of your policy rather than relying on assertions by the insurance adjuster. If you disagree with the company’s interpretation, an insurance attorney may be able to help you get your losses covered appropriately.
What Evidence Can Be Used to Prove the Full Value of a Wind Damage Claim?
Some of the most effective tools you can use to establish the full value of your claim after wind damage include:
- Before and after photos (and videos) of the damaged property
- Storm data showing the extent of the storm
- Records or receipts showing maintenance and repairs made before the storm
- Any other evidence that would indicate the condition of the property prior to the storm
- Professional inspection reports after the storm
- Photos showing your mitigation efforts during and after the storm
- Repair estimates and documentation from licensed contractors
In addition, it is important to keep all copies of correspondence with the insurance company, including taking notes of all verbal communications.
FAQs About Wind Damage Claims
What if the insurance company disagrees about the extent of the damage?
Try to identify the precise point of disagreement. For instance, do you disagree about the existence of damage or the cause of it? If you cannot reach an agreement, you may want to work with an attorney who can negotiate a resolution based on the terms of your policy or an insurance appraiser who can create an accepted value of the loss.
Can I challenge the estimate provided by the insurance company?
Yes, you have the right to review the evidence, refute the assertions with evidence of your own, and dispute conclusions you disagree with.
What should I do if my claim for wind damage is undervalued?
You do not have to accept what the insurance company offers without finding out whether you have the legal right to additional resources. If the estimate for wind damage is unfairly low, it is helpful to:
- Review the provisions of your policy regarding wind damage
- Thoroughly document all damage before making any permanent repairs
- Get an independent inspection
- Compare the repair estimates from the insurance company with those from your contractor and identify all the differences
- Preserve all communications and documentation about the damage and the claim
- Consider talking to an insurance attorney who can analyze your coverage and determine whether the insurer is acting in accordance with its contractual obligations.
If Your Insurer Disputes Your Wind Damage Claim, Find Out What We Can Do to Help
Insurance is complicated, but the premise is simple. When you pay for protection against a threat and that threat causes damage, the insurance company should do what they promised to do under the terms of your policy.
Sometimes insurance disputes arise because people misunderstand what is actually covered by the policy, and in those situations, there may not be much an attorney can do to help. But when the problem stems from the insurer misinterpreting or trying to avoid obligations, it is a different story entirely.
For a confidential consultation to discuss the assistance the team at Ver Ploeg & Marino may be able to provide in your situation, call us at 305-577-3996 or contact us online today.
