But do we know enough about windstorm insurance policies and how to successfully manage an insurance claim?
This article provides some tips to consider in the unfortunate event of a windstorm insurance claim. This article does not discuss flood insurance claims. For some information on that topic, see https://www.wardandsmith.com/articles/pitfalls-of-NFIP-flood-insurance-policies.
Most of us only look at our insurance policy when it comes time to make a claim. But a bit of forethought can help ensure that you have appropriate insurance coverage for potential wind damage. Here are a few questions that you may wish to discuss with your insurance agent.
If your home or business has been damaged, the insurance company will send an adjuster to come and make an assessment of what has occurred and what (they assert) it will cost to correct the damage. It is difficult, if not impossible, for the average home or building owner to know whether the insurance company’s adjuster has accounted for all of the work that must be done and whether the adjuster has fairly priced that work.
It is advisable for the owner to engage a qualified contractor to do the same thing the insurance company’s adjuster is doing: assess the damage and provide an estimate of the cost. This estimate will assist the owner in determining whether the insurance company’s adjuster has omitted necessary work, has overlooked new Building Code requirements that must be complied with or has shorted the market price to complete the required work.
Look for a contractor who you trust, who is responsive to you, and who is capable. Beyond those important traits, it is helpful to have a contractor who is familiar with, and who can utilize, the same software (often a program called Xactimate) that insurance adjusters use to create their estimates. Having a contractor who can create a Xactimate estimate helps you compare apples to apples against the insurance company’s estimate, and allows you to pinpoint where your contractor has identified additional work or higher pricing than what the insurance adjuster’s estimate reflects.
A public adjuster is a licensed professional who performs the same type of assessment and estimation work that an insurance adjuster does. The key difference, though, is that the public adjuster works for the owner, and is the owner’s advocate in connection with the adjusting process. Public adjusters can be incredibly helpful on claims that involve significant damage and where there is an initial disagreement between the owner and the insurance company over the amount to be paid or the necessary scope of work. In those cases, public adjusters create professional estimates and can highlight shortfalls or overlooked items not accounted for in the insurance company adjuster’s estimate.
Public adjusters charge for their work, typically at 10% of the amount of additional money the insurance company agrees to pay on the insurance claim from the time of their engagement. An owner should consider hiring a public adjuster if the amount in dispute justifies the expense of hiring that professional. As part of that consideration, an owner should carefully review the public adjuster’s terms of engagement to understand the financial investment involved in bringing on a public adjuster to the owner’s team.
Insurance claims sometimes create disagreements between insurance companies and owners that cannot be easily resolved. Sometimes insurance claims languish for no good reason. Sometimes insurance companies quote hard-to-understand and boilerplate policy language as a justification for not paying all, or some part, of a claim. Here are a few examples of when an attorney may assist on an insurance claim:
The attorneys at Ward and Smith have significant experience in assisting clients with all types of issues and disputes that arise during the course of a windstorm insurance claim. Ward and Smith has a dedicated group of attorneys within its Natural Disaster + Recovery section who devote a significant portion of their law practice to these matters. Please contact us if we may be of assistance to you relating to an insurance claim.
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© 2022 Ward and Smith, P.A. For further information regarding the issues described above, please contact or .
This article is not intended to give, and should not be relied upon for, legal advice in any particular circumstance or fact situation. No action should be taken in reliance upon the information contained in this article without obtaining the advice of an attorney.
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Written By Michael J. Parrish and Amy H. Wooten
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