After a house fire or hurricane, few things bring more comfort than knowing your insurance plan handles all the resulting damage. Unfortunately, insurance companies do not always have your back. Sometimes, you should decline an insurance check.
Nasdaq explains instances when you benefit from rejecting an insurance settlement. Learn how to protect your peace of mind and financial health.
Insufficient settlement offer
Usually, your insurance provider’s first offer represents the start of negotiations. Before accepting anything, let a professional help you total the damage your home sustained. Compare that with your coverage provider’s first offer. Remember to include extra costs, such as staying in a hotel while repairing your home. Depending on your figures and your insurance company’s offer, you may need to submit a counter-offer.
Denying yourself future coverage
In your haste to restore your home and get back to your usual routine, you may hurry and cash the first insurance check you get. Consider reading over the offer before agreeing to it. You may notice language that notes you release your insurance company from all liability for further damage if you accept the settlement. That means if you cash the insurance check and discover more damage next week, you cannot pursue your carrier for an additional settlement.
Take your time while assessing the damage. You want to restore your home as quickly as possible, but a little patience could pay off in the long run.
Do not cheat yourself out of what your insurance company owes you. Understanding how the claims process works helps with safeguarding your rights.