Surviving Hurricane Helene and Bad Faith Tactics

What You Need to Know About Insurance and Bad Faith Tactics

In the wake of Hurricane Helene, thousands of families are still displaced, uncertain of when—or if—they’ll be able to return to their homes. With homes flooded, roofs torn off, and belongings destroyed, the path to recovery is overwhelming. Many are still waiting to hear about loved ones, while others have only just begun the daunting process of gathering what remains to file insurance claims.

While you focus on your family’s safety and rebuilding your life, it’s vital to be aware of a harsh truth: not all insurance carriers will treat you fairly. This blog is here to help you navigate the claim process, protect your rights, and avoid falling victim to bad faith tactics used by some insurers.

What Is “Bad Faith,” and Why Should You Care?

Bad faith refers to deceitful practices by insurers who, rather than honoring the terms of your policy, choose to delay, deny, or underpay your claim. In the aftermath of Hurricane Helene, these tactics can slow down the recovery process at a time when you need immediate assistance. After enduring such a loss, the last thing you expect is for your insurance provider to offer a settlement that barely covers the damage. Yet, many victims are shocked when they receive an offer that feels like a slap in the face. If this sounds alarming, it’s because these strategies are all too common. Knowing what to watch for is your first line of defense.

Steps to Protect Yourself as You Start Filing Your Claim

If you’re just beginning to gather the items you need for your insurance claim, being aware of the possibility of bad-faith tactics is critical. Here’s how to approach the process carefully and protect yourself:

1. Document Everything Thoroughly

As you begin your claim, take detailed photos and videos of the damage—if and when it’s safe to do so. Thorough documentation will support your claim, whether it’s a collapsed roof, waterlogged furniture, or shattered windows. If possible, keep all receipts for emergency repairs, temporary housing, or any other related expenses.

Insurance carriers may try to dispute the extent of your loss. Having comprehensive documentation can help you counter any attempts to undervalue your claim.

2. Be Wary of Early Settlement Offers

Once you file your claim, your insurer may try to offer a quick, lowball settlement. This may seem tempting—especially if you’re displaced and need immediate assistance—but these offers often fall far below what your policy entitles you to receive. You don’t have to accept the first offer. Taking the time to review and negotiate can prevent you from being shortchanged.

As our Client Specialist MaKayla Fountain explains, “I’ve experienced many cases where the carrier has bullied the insured into settling the claim or settling for less. They threaten to drop the policy or raise the insured’s premiums. They put a lot of fear into the insured.” This fear often drives policyholders to accept offers that don’t come close to covering their losses.

It’s crucial to take a step back, understand your rights, and not let fear drive your decision.

3. Understand Your Policy

Before you file, review your insurance policy to understand what’s covered and what’s not. Many homeowners are unaware of certain exclusions or limitations, which can lead to surprises down the line.

Insurers may use complicated language or fine print as a shield, denying claims that are otherwise valid. Knowing your coverage helps you argue against such tactics.

4. Stay Persistent, Even When They Delay

If your insurer is slow to respond or repeatedly asks for unnecessary paperwork, don’t give up. These are classic bad-faith moves designed to wear you down. Keep communication records—emails, phone call logs, etc.—to demonstrate your compliance and persistence.

Delays can work to the insurer’s benefit. By documenting their lack of action, you can push back and even build a case for bad faith, should the issue escalate.

How to Spot the Signs of Bad Faith

As you navigate the claim process, keep an eye out for red flags. Insurers often employ tactics designed to frustrate policyholders into settling for less:

1. Unexplained delays

If weeks go by without an update or if your adjuster keeps disappearing, this could be a delay tactic.

2. Repeated requests for more documentation

While it’s normal to submit basic documents, such as proof of loss or receipts, multiple or irrelevant requests might signal bad-faith behavior.

3. Sudden changes in your policy’s interpretation

If your insurer starts interpreting policy terms in ways that seem unfair, unusual, or contradictory—they may be trying to reduce your payout unjustly. 

If you notice these signs, it might be time to bring in outside help.

Why a Public Adjuster Could Be Your Best Ally

During this difficult time, your insurance carrier should be your partner in recovery—but as we’ve discussed, that’s not always the case. A public adjuster works for you, not the insurer, helping to ensure your claim is handled fairly and accurately.

As Joey Cafaro, Senior Desk Adjuster, explains, “After significant damage, policyholders naturally focus on recovery, often overlooking the need to protect themselves, which can lead to underpaid, delayed, or denied claims. Consulting with a public adjuster early on protects their interests from the start. As experts, we thoroughly document all aspects, understand industry cost standards, and navigate policy details that can impact coverage. While policyholders juggle jobs and families, our full-time role is to combat insurance carrier delays, aiming to ensure claims are settled fairly and promptly.”

Leveling the playing field

Insurers have teams of adjusters and lawyers protecting their interests—and you should, too. A public adjuster is your advocate, ensuring your claim is not undervalued or unjustly delayed.

Expert knowledge of insurance

With a public adjuster on your side, you can rely on their knowledge of the industry, understanding of bad faith tactics, and ability to fight for the settlement you deserve.

The road to recovery after Hurricane Helene is long and uncertain. Filing an insurance claim during such a chaotic time can feel overwhelming. However, understanding the possibility of bad-faith tactics will help protect you. Keep track of your documents, stay persistent, and never hesitate to ask for help from a public adjuster if you feel your insurer isn’t acting in your best interest.

Bad faith tactics shouldn’t stand in the way of rebuilding your life. If you’re still waiting for your claim to process, or if your insurer hasn’t provided the assistance they promised, remember—you have the right to fight back.

Contact Premier Claims today to set your claim up for success!

What Do You Do After Property Damage Occurs?

Steps to Take After Property Damage 

As you’re sitting at your dinner table, drinking your coffee, and eating your breakfast, you open up Facebook, and all you see are photos, videos, and news articles about the hail storm that swept through your neighborhood. You see that one of your friends posted a picture of a golf ball-sized hail near one of the office buildings you own. You realize there is a VERY good chance your building has damage. What do you do? Do you know how to navigate the claims process after property damage?

Here’s a comprehensive guide on what to do after property damage:

1. Mitigate Further Damage

First and foremost, prioritize your own safety and that of others. If the damage poses any immediate danger, take necessary steps to mitigate further impact or loss to your property. This could involve actions like boarding up windows, covering exposed areas, or shutting off utilities if necessary. Safety should always be the top priority.

2. Document the Damage

Capture thorough photographic and video evidence of all damage. This documentation is crucial as it serves as tangible proof of the extent of the damage for your insurance claim. Take pictures and videos from multiple angles, including close-up shots and wider views, to capture the full scope of the damage.

3. Contact Our Team for Guidance

Reach out to our team as soon as possible for professional assistance. Premier Claims specializes in navigating the complexities of insurance claims and can provide invaluable guidance from the outset.

4. Initiate the Claims Process

After reviewing the evidence and records, if we determine there is sufficient damage covered under your policy, we will initiate the claims process on your behalf.

Contact us today to learn more about how we can assist you in navigating the insurance claims process and recovering from property damage effectively. Your peace of mind is our priority.

Navigating Fire Damage: What to Do After Fire Damage?

What to Do After Fire Damage?

Fire Damage can be devastating, and we are committed to providing expert guidance and support, ensuring you have the knowledge and resources to navigate through the challenges of fire damage and restore your peace of mind.

Explore our curated series covering every facet of fire damage. Our expert Fire Checklist ensures your preparedness!

After fire damage checklist

 

To learn more about navigating fire damage, check out the following articles:

Navigating Fire Damage: Proactive Protection

Navigating Fire Damage: After the Damage Occurs

Navigating Fire Damage: Recovering Contents

 

Louisiana New Law: Allows for Public Adjusters

A new law, signifying a significant development for policyholders in Louisiana, has passed, forbidding property insurance policies from containing provisions that deny an insured individual’s right to hire a public adjuster. Before the introduction of this new law, insurance policies with anti-public adjuster clauses prevented policyholders from hiring a public adjuster. The legislation aims to provide all policyholders and businesses with greater control and expertise in navigating insurance claims. 

On June 12, 2023, Louisiana Governor John Bel Edwards signed into law a bill from Sen. Royce Duplessis, D-New Orleans, and Rep. Ray Garafalo, R-Chalmette, that prohibits insurance carriers from inserting anti-public adjuster clauses into property insurance policies. The new law (SB156) in Louisiana will take effect on August 1, 2023, and allow all policyholders to hire public adjusters.

Benefits for Policyholders:

Removing the anti-public adjuster clauses is a significant win for policyholders in Louisiana. Here are some key benefits that policyholders can expect:

Expertise and Representation: 

Licensed professionals with in-depth knowledge of insurance policies and claims processes, public adjusters actively operate. They can assess the full extent of damages, and strive for fair compensation per the policy.

Time & Stress Reduction: 

Navigating an insurance claim can be a complex and time-consuming process. By engaging a public adjuster, policyholders can offload the burden of handling paperwork, documentation, and negotiations. This allows them to focus on other important aspects of recovery, such as restoring their property or business.

Maximizing Claim Settlements: 

Public adjusters skillfully value losses accurately and ensure fair compensation for policyholders. They can help policyholders avoid potential underpayments or claim denials, leading to maximized settlements.

Rules and Regulations for Public Adjusters in Louisiana:

While the new law in Louisiana enables policyholders to hire public adjusters, it’s important to understand the existing rules and regulations governing their operations. Here are some key points to note:

Licensing:

Public adjusters in Louisiana are required to obtain a license from the Louisiana Department of Insurance (LDI). Additionally, the licensing process involves meeting certain criteria, including background checks and the successful completion of an examination.

Fee Limitations: 

Public adjusters charge fees for their services, typically calculated as a percentage of the insurance claim settlement. In Louisiana, these fees are regulated and should conform to state guidelines. Policyholders should discuss fee arrangements with the public adjuster before signing any contract.

Contractual Agreements: 

Public adjusters must provide written contracts to policyholders, outlining the terms and conditions of their services. The contract must clearly state the fees, scope of work, and any additional expenses that policyholders may incur during the claims process.

Prohibited Activities: 

Public adjusters are prohibited from participating in any deceptive or fraudulent practices. Furthermore, they have a fiduciary responsibility, must act ethically and in the best interests of the policyholders they represent. Violations of these regulations can lead to disciplinary actions by the LDI.

Louisiana’s new law granting policyholders the ability to hire public adjusters is a significant step toward empowering individuals and businesses when dealing with insurance claims. With the expertise and representation provided by public adjusters, policyholders can expect a smoother and more favorable claims experience. By leveraging this new legislation, policyholders can navigate the complexities of the insurance world with confidence, knowing they have dedicated professionals on their side.

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