Why Insurance Companies Aren’t Paying Out Claims Like They Used to

Blog Post

Schedule a free inspection at your home

Over the last couple of years, you might have seen a few headlines about insurance companies getting less lenient about paying out insurance claims. In 2023, for instance, Business Insider published the article “Insurance companies have discovered devious new ways to rip you off” and last year, CNN reported, “The home insurance market is crumbling. These owners are paying the price.”

So, what is really going on here? Are insurance companies not paying out like they used to? And if so, how can you boost your chances of having your claim accepted?

Is it harder now to have an insurance claim accepted?

Insurance claims have always been intimidating to home owners and business owners. But is it true that it’s harder nowadays to file a claim than before? Unfortunately, there are a few reasons why it does seem to be more difficult to file a successful claim, including:

Climate concerns. Over the last few years, insurance providers have been dealing with more climate-related insurance claims than ever before. In fact, data from the international campaign, Insure Our Future, shows an estimated 7% increase in the number of climate-related weather damages over the last decade. The effects are hardest felt in areas impacted by these changes (think of the wildfires in California or the flooding in Louisiana and Texas), but for insurance companies that provide national coverage, this means higher premiums for everyone, including homeowners outside of the affected areas, as well as more claims being rejected.
Inflation. Inflation is another big reason why insurance claims might be trickier to navigate than before. That’s because, while the costs for repairing damages to your home have risen over the last few years, your insurance coverage might not have been updated to reflect that change. That means that even if your claim is approved, it might not be enough to cover the damages.
Limited options for insurance companies. Because of the previous two strains on insurance companies, we seem to be in a bit of a reshuffling period. Many companies, for example, are pulling out of high risk areas, while others are deciding not to renew insurance coverage for certain homeowners. It’s not good news for consumers, who may find themselves stuck with very few options and significantly reduced insurance policies.
Bad faith insurance companies. Not all insurance companies are evil, and the majority of insurance brokers do want to help homeowners in need. That being said, some insurance companies may feel incentivized to reject as many claims as possible, especially if they’ve been hit hard by rising costs and the effects of an increase in insurance claims. For this reason, it’s essential that homeowners carefully research a company before signing up for coverage and that they fully understand the policy.

Radiant roofing and completed insurance claims projects in Cleveland area

How can you boost your chances of a successful insurance claim?

While it may be true that insurance claim approval seems to be harder than before, the best way to deal with it is to learn ways to boost your chances of a successful claim. Here’s how:

Act fast

One of the common reasons that some insurance companies will give you for rejecting a claim is that it wasn’t filed within their time frame. So you want to make sure that you’re acting quickly to get in touch with your home insurance company.

Call a professional restoration or contracting company

Now, we understand that having to deal with home insurance immediately after a disaster is overwhelming and sometimes impossible. You may, after all, be dealing with injured family members, trying to find temporary housing, and shock.

That’s why we recommend contacting a professional restoration or contracting company as soon as possible. Our team here at Radiant Roofing, for instance, is experienced with insurance claims and can guide you through the process. We’ll do our own damage assessment and help with documentation and claim submission.

Review your home insurance policy carefully

Once you’ve contacted your home insurance company, they’ll assign an adjuster who will contact you with further questions and to schedule an in-person damage assessment. It’s a good idea to carefully review what’s included in your insurance policy before talking to the insurance adjuster so that you can advocate for yourself and ask any questions.

Start documenting as soon as possible

You never quite know what kind of documentation will be helpful for your insurance claim, so it’s best to document as much as possible. This means taking your own photos of the damages (as long as it’s safe to enter your property; if not, our professionals can help with that) and putting together an inventory of lost or damaged items. You can also keep records of any temporary repairs that need to be done, such as putting plywood over broken windows, or temporary living arrangements, such as hotel receipts.

If your claim is rejected, don’t lose hope

We know that it’s scary to hear that home insurance claims are more difficult to file these days. But remember that a rejected claim or a claim offer that doesn’t meet your expectations isn’t the end. We’re in your corner to help you get clarification on the rejection and even appeal your claim.

And, in the case that your claim doesn’t cover as much as you expected, even after appeal, we’ve got even more creative solutions that can help. Our team here at Radiant Roofing can help with budgeting, affordable building options, and even financing so that you can start reconstruction.