When dealing with a catastrophic loss, there is a lot to consider. Sifting through the debris of your life after a catastrophe can sometimes provide clues about what happened, but not always. Insurance companies are trying to investigate hundreds of claims all at the same time and may attempt to skip corners to get ahead. Here’s a look at some common problems victims experience after a disaster:
Loss of business. Not only is the insured building a loss, but the insurance agency itself in the local area might also be a loss.
It takes time. After a hurricane or a tornado, it takes time for insurance agencies to visit every single claim and assess the damage.
The application of deductibles. Clauses on an insurance policy regarding coverage under a deductible can be difficult to decipher. In the aftermath of a disaster, it can be hard to separate what the disaster caused and what was already a problem. This investigation takes time and can cause a huge delay in payment and closure.
Service and utility loss. Even though a business or a home might not incur any physical damage in the disaster, their property might still incur damage from the conditions. A loss of local utilities can mean pipes can freeze in a snowstorm, or basements can flood when the electricity is out. Insurance companies sometimes argue against this type of claim because the loss of power-damaged the property, not the storm itself.
Meteorological definitions. Following an event like a hurricane, it can be impossible to tell what damage happened from what kind of weather. If a property has insurance for wind damage but not flood damage, it can be impossible to know if the flood water came in the house first, or if the broken window caused by wind damage allowed the rainwater to enter the house.