Everywhere across the country, we are seeing natural disaster after natural disaster. Wildfires out West and tornadoes and flooding in the South, and hurricane season is coming soon. After each of these events, many of us get to deal with our insurance company and, by extension, a claims adjuster.
Here are the top three things your claims adjuster says to you and what they are actually thinking.
1. After a fire
You are evacuated due to a massive fire heading your way. You hole up at a hotel and await finding out your home’s fate. Sadly, not much is left once the flames are extinguished. Your first conversation with your insurance company’s claims adjuster may go like this:
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
You: I’ve lost everything! I can’t believe this. I need you guys to get busy rebuilding my house, like tomorrow. Just wire me my policy limits for everything. Seriously, the fire is out, let’s get the ball rolling so I can get my house back before everyone else starts hiring the good contractors.
Claims adjuster: I am so sorry for your loss. Let’s start the process, gather the information we need, get you some money right away so you are as comfortable as possible and move forward from there.
What the claims adjuster is thinking: Poor fella. Everything is gone. But start rebuilding your house tomorrow? Dude, the place is still smoldering, and it is going to take 12 to 18 months before all of the debris removal is completed and the toxins are gone. I can’t just write a check for everything — the policy has requirements for things we both have to do. Take a breath, you’re alive and have a policy — you’re much better off than some. And don’t worry, there will be plenty of contractors fighting to get money from us to rebuild your place.
2. After a storm
Toto, I’ve a feeling we’re not in Kansas anymore. A tornado destroyed your house. It’s going to take a lot of money to rebuild it.
You: Can you believe this weather? Like, out of nowhere, this tornado moved in and basically ripped apart half of my house. I barely escaped. Have you seen the house? I don’t want to live there anymore. Just write me a check and take the house. You can have it.
Claims adjuster: I am so sorry for your loss. It must be very emotional to have just barely escaped the storm. Let’s see what options are available for you under your insurance policy.
What the claims adjuster is thinking: No, you can’t have the money from your policy meant to rebuild your home and just hand your home over to us. You have a loan on that house, remember? I don’t think your bank would be very happy to see you walk away from it and take your insurance proceeds.
3. After a flood
It’s pouring cats and dogs. Not just a lot of rain, but the kind of rain that you can’t even see through, day after day after day. Then water makes its way up your driveway and starts coming under your front door. Soon, your home isn’t under water, but the water is in your home, from the bottom up.
You: My house is effectively a large swimming pool. The water level has risen above the couches, above the beds, and even some of my wall shelves are wet. I wouldn’t be surprised to see water shooting out of the chimney. I’m glad I have my homeowners insurance policy to pay for all of this.
Claims adjuster: That sounds absolutely horrible. I am so, so sorry to hear this. Unfortunately, flood damage is specifically excluded from your homeowners insurance policy. The policy lists in Section I – Exclusions, “We do not insure loss caused directly or indirectly by flood, surface water, waves, water backup, water below the surface.” This type of coverage would be covered by a Flood Insurance policy, available from FEMA or an insurance agent or broker. Would you like information for the Small Business Administration on obtaining a loan to fix your damage?
What the claims adjuster is thinking: So apparently you’ve never read your insurance policy. The first section under exclusions is literally labeled “Flood.” It’s right there. And don’t get irritated at me — I didn’t write the policy.
So what can we learn to do (or not do) from these exchanges?
- Keep your expectations realistic when it comes to what your insurance company can do and how quickly.
- Understand the limits of what your insurance does. Insurance policies are indemnity policies, meaning they are designed to put you back to the way you were before the loss. If that meant you had a house, then rebuilding that house. They are not designed to cash you out.
- Read your insurance policy so you know what’s covered and not covered.
- Don’t take your frustrations out on the claims adjuster — they’re just doing their job.
Want to learn more about insurance? Visit KarlSusman.com.
Related Content
- Why Homeowners Insurance Has Gotten So Very Expensive
- Are You Tempted to Drop Your Homeowners Insurance?
- Wait, My Homeowners Insurance Limits What?
- Home Insurance: How to Cut Costs Without Losing Coverage
- Should You Hire a Public Adjuster for Your Insurance Claim?
-
Don’t Miss Apple and Walmart Back-to-School Tax-Free Holiday Savings this SummerSales Tax Select states host sales tax holidays during the summer. Here’s what you can purchase.
-
The Rule of Retirement InversionThe rule of retirement inversion says that to have a great retirement, you must ask yourself what would ruin a great retirement — and then plan to avoid it.
-
The Five Best Side Hustles for RetireesMore older people are working in retirement to boost income and stave off boredom. These gigs and hustles make the most sense for the golden years crowd.
-
TSA’s New Family Lanes Aim to Take the Stress Out of Summer TravelThe “Families on the Fly” campaign introduces family-friendly security lanes and discounted TSA PreCheck fees — just in time for peak travel season.
-
How Divorced Retirees Can Maximize Their Social Security Benefits: A Case StudySusan discovered several years after she filed for Social Security that she is eligible to receive benefits based on her ex-spouse's earnings record. This case study explains how her new benefits are calculated and what her steps are to claim some of the money she missed.
-
From Piggy Banks to Portfolios: A Financial Planner's Guide to Talking to Your Kids About Money at Every AgeFrom toddlers to young adults, all kids can benefit from open conversations with their parents about spending and saving. Here's what to talk about — and when.
-
I'm an Investment Pro: Here's How Alternatives Could Inject Stability and Growth Into Your PortfolioAlternative investments can often avoid the impact of volatility, counterbalancing the ups and downs of stocks and bonds during times of market stress.
-
Retirement in the Age of Cyber Scams: How To Protect Your Next ChapterRetirement is meant to be a time of relaxation and living life on your terms. But for many retirees, this dream is under threat from a growing epidemic — cyber scams.
-
Dow Bleeds Red Due to Big Blue: Stock Market TodaySix of the official GICS sectors were in the green, led by communications services, technology and energy stocks.
-
July Fed Meeting: Live Updates and CommentaryThe July Fed meeting could be a lively economic event, with Wall Street keyed into what Fed Chair Powell has to say about interest rates and President Trump.
