Even small house fires can be majorly destructive, leaving you stuck with costly repairs and the stress of making your home livable again. Your homeowner’s insurance policy should help offset the cost of those repairs and take some of your financial stress out of the equation. But before you file a claim, you’ll want to make sure you understand how your insurance company will send out those payments so you can decide if it’s time to work with a Michigan property insurance claim attorney.
You’ll Typically Receive a Lump Sum
Most insurance companies will pay out claims as a lump sum payment. This means you’ll receive the full settlement amount at once. Most often, claims will be paid out as a check that you can deposit into the account of your choice. You’re free to use the money to cover the cost of repairs, replacements, or anything else you deem appropriate. Keep in mind that the amount you’ll receive may be capped by the coverage limits in your homeowner’s insurance policy. If the damage costs more to repair, you may need to pay the remainder out of pocket.
If you’re unsure about the details of your policy, be sure to speak with your insurance agent. They can explain everything to you, and if necessary, help you adjust your coverage to help you stay fully protected.
Your Insurance Adjuster Makes Recommendations
When you file a claim with your insurance provider, they’ll send out an insurance adjuster to assess the damage. The adjuster is responsible for determining how much you’ll receive based on their assessment of the damage. As employees or representatives of the insurance company, adjusters have to balance fair settlements with the insurance company’s budget. It’s in their best interest to find the damage less extensive than it may actually be.
You Can Contest the Settlement if Needed
Once the adjustment is over, the insurance company will offer you a settlement. If the amount they offer is on par with what you feel is fair, you’re free to accept it. But if it seems low or you’ve gotten estimates from contractors in your area that show the repairs will cost significantly more, you can contest the settlement.
If you choose to contest the settlement, you won’t be able to cash the check the insurance provider offers. Instead, you’ll need to initiate an appeal of their decision and wait for them to review your case again. You may also want to work with a Michigan property insurance claim attorney when contesting the initial settlement offer. They’ll help you document the severity of the damage and show the insurance provider exactly why their initial settlement is too low.
You Can and Should Fight Denied Claims
Occasionally, insurance claims will be denied for reasons that may not be valid or apparent when you file your claim. And just as with settlement offers, you can fight denied claims to increase your chances of getting the money you need to repair your home. Your attorney will be able to represent your case and negotiate with the insurance company on your behalf so you can focus on putting your life back together.
If the appeal is successful, you’ll receive a settlement offer from the insurance company and can deposit the check as soon as possible.
Work With a Michigan Property Insurance Claim Attorney
If your home is damaged in a fire, your homeowner’s insurance policy should help you cover the cost of repairs. While you’ll likely receive a check from your insurance provider, making sure it’s enough can be tricky. At Fabian, Sklar, King & Liss, we’re here to help. Our attorneys can review your case and help you decide on the best next steps. Contact us today to schedule a consultation.