How to Improve Your Home Insurance Payout

There may be several reasons why your home insurance claim was underpaid. Your insurer may think the replacement value of your house is less than its actual cost. Or maybe you think the repair or replacement costs more. Whatever the case, there are measures that you can take to improve your payout and get the reimbursement you want.

Add Coverage

Annually, review the values listed on your policy to make sure you have the right amount of insurance. Knowing that you and your family will be protected in case of a disaster will give you a sense of peace. If you feel the amount of protection you have is not enough, you may be able to get an adjustment on your policy. If you add coverages, you will have added protection against losses.

Ask Insurance Companies to Double-Check

Double-check with your insurance company that the square footage on the policy is correct. Ask them to explain how they calculated the cost per square foot and whether their numbers are consistent with those in your area. If you disagree, ask them whether they can offer an alternative solution.

Get Multiple Quotes

Assess the cost of rebuilding your house. A good way to get this done is by contacting several second or third-tier home insurance companies and comparing their estimates to the price quoted by the company you chose. If they are similar, the premium you are being charged is probably fair; but if not, get an explanation from your insurer. You may want to consider changing plans to the other insurer’s plan as well. If you decide to stay with your current insurer, inquire if they will match their competitor’s rate.

Hire an Independent Appraiser

Insurance companies are not always trustworthy in appraising a property’s value. You should hire an appraiser who is both accepted by insurance companies and knows how to use their approved tools. Ensure the insurance firm will accept the report your appraiser offers, so you don’t end up paying for a report that won’t help you. An independent appraisal may result in a different home value, ultimately benefiting you.