Experiencing property damage—whether from fire, flood, frozen pipes, or a major storm—is stressful enough. But if you think your insurance company is automatically going to pay out the full amount to repair or replace your losses, you might be in for a rude awakening.
The unfortunate truth? Insurance companies are often more focused on protecting their profits than your recovery. While they may appear helpful, there are often subtle signs they’re working to minimize your claim behind the scenes. At Up Front Settlements, we’ve seen it all—and we’re here to help you recognize when your insurer isn’t playing fair.
Here are 7 red flags that your insurance company may be trying to undercut your property damage claim—and what you can do about it.
1. The Settlement Offer Comes Too Quickly
If you receive a settlement offer within days—sometimes even hours—of filing your claim, pause before signing anything. Fast offers usually mean low offers. Insurance companies know you’re under stress and they’re hoping you will take the first check just to move forward.
What to do: Take your time. Have the damage thoroughly inspected and compare multiple repair estimates before accepting any payment.
2. Your Damage Is Minimally Assessed
Did the adjuster spend 10 minutes walking through your home? Did they overlook interior walls, electrical issues, or water behind the drywall? If the inspection felt rushed or surface-level, your claim is likely being undervalued.
What to do: Conduct your own documentation with photos and video. Better yet, get a second opinion from a public adjuster who will assess the damage thoroughly.
3. You’re Told to Use “Their” Contractors Only
Some insurers steer you toward contractors from their network. These contractors work for the insurance company and their estimates are dictated by the insurance companies and are created to keep costs down—which means your property will not be restored to its pre-loss quality and condition.
What to do: You have the right to hire your own licensed contractor. Always get an independent quote to compare.
4. They Say Certain Damage Isn’t Covered—But Can’t Clearly Explain Why
Insurance policies are complicated, but vague denial letters and unclear explanations are a red flag. If your insurer claims something isn’t covered but won’t back it up with a direct quote from your policy, be suspicious.
What to do: Ask for a written breakdown of what’s being denied and why, including the specific policy language. Then have a public adjuster review your policy and claim to verify the facts.
5. They Overlook Secondary or Hidden Damage
Just because the roof is patched doesn’t mean the job’s done. Water damage can spread, smoke can linger in walls, and structural damage can go unnoticed—especially when the insurer is trying to minimize costs.
What to do: Hire an independent expert to inspect for mold, electrical hazards, or internal damage that might have been ignored.
6. They Stop Communicating or Drag Out the Process
Long periods of silence, slow responses, and vague updates are tactics some insurance companies use to wear you down. Eventually, they hope you’ll get frustrated enough to accept whatever is offered.
What to do: Keep a written log of all communications. If delays continue, bring in a public adjuster to take over negotiations and demand accountability.
7. They Hint That the Damage Was Your Fault
It’s not uncommon for insurance companies to suggest that your claim won’t be fully covered because of poor maintenance or “pre-existing” issues—even if the damage clearly resulted from a covered event.
What to do: Don’t let them shift the blame unfairly. Gather documentation and consult with a public adjuster who can advocate on your behalf and refute inaccurate conclusions.
How a Public Adjuster Protects You
At Up Front Settlements, we work for you—not the insurance company. We know the tactics insurers use to minimize claims, and we counter them with accurate assessments, detailed documentation, and aggressive advocacy. We review your policy, inspect all damage (visible and hidden), and take the lead in negotiations to make sure your settlement reflects the true cost of getting your life or business back on track.
Don’t Settle for Less
If any of these red flags sound familiar, it may be time to take a step back and get professional help. You paid for coverage. You deserve the full benefit of it.
Contact Up Front Settlements today at 248-841-5674for a consultation. Let us help you turn a frustrating claims experience into a successful one—and ensure none of your settlement dollars are left on the table.
