For homeowners in Oklahoma City, filing a storm damage claim is not uncommon. In fact, Oklahoma ranks in the top 5 list of states with the most properties affected by hail every year. While most people assume their insurance company has their back, that isn’t always the case, and some homeowners end up receiving lowball settlement offers that don’t even come close to covering the cost of damage. This leaves them paying out of pocket for a storm damage claim that should have been covered.
Sometimes the difference between what it costs to repair storm damage and what the insurance company values the damage at can be thousands of dollars.
One example is a homeowner we worked with last year in 2020. After filing a storm damage claim, the insurance company valued the damage at $21,725.36. The actual cost to repair all the damage was $36,346.06 – a difference of $14,620.70 the homeowner was expected to pay out of pocket. Large differences like this can be caused by a variety of things, including inexperienced adjusters, missed areas during the inspection, incorrect material costs used, etc.
Sometimes all it takes is a phone call and re-inspection to get on the same page but other circumstances may require the help of a property damage attorney or claim expert. Read on to learn what options are available to homeowners who’ve received lowball storm damage claim settlement offers.
** NOTE ** The information included here is general. Every insurance policy is different, and yours may or may not allow the options below.
1. Storm Damage Claim Reinspection
If the estimate you’ve received from your insurance company is lower than what your contractor’s estimate is, it may be due to missed damage or an incomplete estimate.
A “reinspection” is one way to resolve this and is a lot like your insurance company getting a second opinion from a different adjuster. In most cases, this happens if any damage was missed and additional items need to be included in the estimate to repair storm damage. Sometimes, homeowners can request this if they suspect the repair cost is lower than it should be. Other times, the insurance carrier may request additional photos/videos of the missed damage before sending an adjuster out to confirm it.
Unfortunately, this option will not solve all problems related to a lowball settlement offer.
2. Storm Damage Claim Appraisal
The appraisal process is very similar to mediation – both parties hire an expert to submit their findings. This information is then reviewed by an impartial third party, known as an Umpire. The Umpire makes a final decision that both parties have to agree to.
It’s important to note that the appraisal process can only be used when there is a difference of opinion on the price or cost of damage. This process cannot be used when there is a disagreement on policy scope or what should and should not be covered.
Choosing to go to appraisal can be more cost-effective than hiring an attorney and going to trial. However, it may not be applicable in all situations.
Unfortunately, this option will not solve all problems related to a lowball settlement offer.
3. Hire An Attorney
Hiring an attorney is another way to help solve lowball settlement offers, but it can be costly. Sometimes, trial cases can take a year or more, and you may have to pay for expert help up front.
This option can solve problems related to a lowball settlement offer, but it can be costly and take a long time.
4. Assignment Of Benefits
“Assignment of Benefits” or AOB is a term many homeowners may not be familiar with. It involves signing a document that transfers the rights/proceeds of an insurance claim to a third party – often the contractor involved. Once an AOB is signed, the contractor can use their resources and team of experts to get a fair settlement. Once that occurs, the roof replacement or other storm damage repairs can be completed.
This is often an easier (and less stressful) way for homeowners to get repairs made without the hassle and costs of hiring their own experts or attorneys.
Before going the AOB route to handle your storm damage claim, it’s important to ensure you are dealing with a qualified storm restoration contractor familiar with AOBs. At Triple Diamond Construction, we have extensive experience with them – even winning cases that make their way to the Oklahoma Supreme Court.
About Triple Diamond Construction
As the best local roofing contractor, we take great pride in helping people protect and repair their homes. If you’ve been hit by a storm or are seeing signs of a problem, give us a call today at 405-895-9972 for a free storm damage claim inspection! We have three offices across the Oklahoma City metro to make serving you easy and hassle-free!
