Avoiding Claim Disputes Through Fact-Based Windstorm Damage Assessments
Property insurance policies share risk between a pool of policyholders in the unfortunate case that one or more policyholders suffer a catastrophic loss. To function properly, the system requires that all parties establish the damages based on scientifically valid facts, so that aggrieved parties can be compensated for covered losses and rates paid by policyholders can be controlled, and so the policyholder can be justly compensated without delay or litigation.
I have assessed numerous weather-related property damage claims for both carriers and policyholders. In many cases, insured and insurers establish facts at the beginning of the claim investigation and reach a mutually agreeable settlement. However, when a claim lacks solid factual basis, either through lack of knowledge, indifference, or other reasons, disputes requiring resolution by umpire or litigation often ensue. This article presents several property claims I examined on behalf of carriers with respect to roof, exterior walls, windows, and interior damage. These claims were in litigation due to erroneous information supporting the claim, or claimed damage actually and demonstrably pre-dated the event or policy period. The goal of this article is to create awareness of useful steps to help establish a factual basis for a claim to help avoid contested disputes and costly litigation.
Publisher
Consumer Claims Journal