You Can Negotiate Most Insurance Claims

State departments of insurance and judges regulate insurance companies in favor of claimants. This gives you, the claimant, a lot of negotiating power. Negotiate all claims that arise out of homeowners insurance, car insurance and business insurance. These claims all involve damage — to car, home, body or earnings. Damage is subjective. Two estimates to repair damage will rarely be the same.

Your claim adjuster is motivated to give you as little as possible for your claim. After the initial offer, present evidence for why you deserve more. The keys to gaining negotiation power in insurance claims are: 1) Seek and follow the advice of experts. 2) Document and photograph all the evidence.

Homeowner Claims

When a fluke whirlwind picked up our metal garden shed and threw it across our yard, half the $1,000 we received for our homeowner claim was for debris removal. $200 was for delivery and assembly of our new shed. The shed itself only cost $300. Homeowner claims can often include expenses that might not occur to you: staying in a motel while your home is unlivable, temporary repairs to prevent animals or the elements from getting in, delivery and assembly costs, and debris removal.

Liability Injury Claims

I adjusted liability injury claims for eight years. Car accidents produce these most often, but “slip and fall” accidents and dog bites are also common. You have the best negotiating stance in these claims when you promptly and faithfully seek medical attention. Get all your doctor’s orders in writing, and follow them to the letter. The following make excellent evidence for liability injury claims: gruesome injury photos that also identify the person, medical records, doctor’s orders, pain journals, loss of earnings letters from bosses or clients, photos of the extensive damage to your car, photos of the ferocious dog that bit you, or photos of the perilous condition at the home or business where you fell.

Car Claims

If your adjuster says your car is a total loss, negotiate to receive the average amount that similar cars in similar condition recently sold for in your neighborhood. Evidence sources for this are: photos of the excellent condition your car was in before the accident, written statements from used car dealers in your area, and used car listings in your local newspaper. If your car is repairable you can take cash in lieu of repairs. If you want to do this, then get a second opinion on how much repairs would cost. If you allow the insurance company to fix your car, then do not sign off on the repairs until they meet your expectations. In any case, remember to include a rental car in your car insurance claim.

Business Claims

Business insurance claims involve loss of earnings in addition to property damage and all the incidental expenses described under Homeowner Claims above. Your adjuster might request your tax returns from the past three years in order to calculate your average monthly earnings. If the loss happened during your high earning season, be sure to point that out. Damage to a field full of crops is worth more than damage to a fallow field. A demolished store loses more at Christmas time than during the slow summer season.

Insurance Claims You Cannot Negotiate

As described above, claims against most accident insurance policies are negotiable. Examples of insurance claims that are usually not negotiable involve: health insurance, dental insurance, vision insurance, life insurance, and accidental death insurance. Most of these insurance policies specify the amounts they will pay.