Being a homeowner in Florida means dealing with property damage claims on a regular basis. Between hurricanes, tropical storms, rain, and plumbing failures, at some point, many homeowners have to make a damage claim. One of the biggest complaints Florida property owners have with insurance companies is when they get their damage estimate, which is usually much lower than they anticipated. Learning why insurance companies tend to underestimate damage claims for Florida residents can actually help homeowners get a better outcome for their claims.
High Volume of Insurance Claims in Florida
Florida has one of the highest volumes of insurance claims, especially due to weather-related damage. When a major storm hits, insurance companies often have to deal with thousands of claims at one time. When this happens, insurance adjusters often feel pressure to make a quick inspection of each property and get to the next one.
This often results in insurance estimates not being properly documented. An insurance adjuster might see the obvious damage to the property, but they might not see what’s behind the walls, which can lead to additional damage due to moisture. Florida’s humid climate means moisture damage can occur quickly, resulting in mold growth, which can cost much more to fix.
Hidden Water and Storm Damage to Florida Properties
Many Florida properties have damage that is not immediately visible. Many roofs have small openings, especially if they are older. Even with small openings, strong winds can blow rain into the home, especially if the windows or siding have any openings.
If the insurance company’s estimate is based on what they see, they might not see what’s really needed to fix the damage. A proper inspection of damage often requires moisture checks, roof inspections, and contractor opinions. Without these steps, the insurance company’s estimate might be much lower than what is actually needed to fix the damage.
Standardized Pricing vs Florida Repair Costs
The insurance companies use pricing databases to generate an estimate. These pricing systems do not always factor in the reality of Florida’s construction industry. Labor and permit fees, as well as increased material costs, may be factored into the final cost of the repairs.
The building codes in Florida are also quite stringent, especially in coastal areas. Any upgrades needed to bring the house up to date may not be included in the initial estimate. This means that homeowners may end up footing the bill for upgrades and repairs not included in the estimate, which may be lower than what actual contractors charge for work.
Communication Gaps During the Claims Process
Another reason why insurance claims may be underestimated is the lack of clear communication between the insurance companies and the homeowner. This means that homeowners may not be aware of the steps needed to be taken to ensure their insurance claim is processed properly. This may also mean that homeowners may not be aware of the need to provide documentation to prove the damage to their insurance companies.
This is particularly important in Florida, as storm damage may occur in different areas of the house. This means that homeowners may need to provide detailed photographs and written assessments to ensure that the damage to their house is properly addressed in the insurance claim process.
The Financial Impact on Florida Homeowners
The financial impact on Florida homeowners means that homeowners may be forced to pay out of pocket for repairs not covered in the insurance claim. This may also mean that homeowners may be forced to deal with further damage to their properties as repairs are delayed. This may be particularly problematic in Florida, as rain and humidity may damage properties not repaired in a timely manner.
Fortunately, insurance estimates are not always set in stone. Additional damage can often be documented, and claims can be supplemented. Homeowners often seek professional help to ensure that their claims are as accurate as possible.
How Florida Property Owners Can Protect Their Claims
There are several ways a property owner can be proactive and minimize the potential of having an underestimated claim:
- Take photographs of the damage
- Request detailed estimates from licensed contractors
- Maintain a record of all communication with the insurance company
- Ask questions regarding the missing items in the estimate
- Consider hiring someone to evaluate the damage if it appears extensive
By doing so, you will be able to create a better and more accurate picture of the property damage.
Final Thoughts
Insurance companies are not necessarily underestimating the damage; they are just facing a high volume of claims, storm damage is often concealed, and the price of the damage is limited.
