Common Insurance Claim Pitfalls
The most common mistakes that delay or reduce insurance claim payouts — and how to avoid them.
1. Waiting too long to file
Most policies require you to report a loss "promptly" or within a specific window. Delayed reporting can give the carrier grounds to deny the claim entirely. File as soon as you've secured the scene and documented the damage.
2. Disposing of damaged property too quickly
The adjuster needs to inspect the damage. Throwing away damaged items before they've been assessed — even for health or safety reasons — can eliminate your proof of loss. Photograph everything before disposal and document why the disposal was necessary.
3. Accepting the first settlement offer
Initial offers are often low. Carriers expect negotiation. Before accepting, get independent contractor estimates, verify the settlement covers your actual replacement cost (not just actual cash value), and confirm the offer includes all covered losses.
4. Not understanding actual cash value vs. replacement cost
ACV policies pay what the item was worth at the time of loss — depreciated value. RCV policies pay what it costs to replace the item new. If your policy is ACV, the gap can be enormous. Always know which you have.
5. Missing the statute of limitations
If the carrier denies your claim or you dispute their settlement, you typically have a limited window to sue. In Georgia, that window can be as short as the suit limitation clause in your policy (often one year from date of loss). Miss it and your claim is gone.
6. Not keeping a claims diary
Document every conversation — date, time, name of the person you spoke with, and what was said. If the adjuster makes a verbal promise, follow up in writing. This record is essential if the claim ends in dispute.
7. Signing a broad release too early
A general release closes all claims arising from the loss — even future ones you haven't discovered yet. Do not sign a release until you're confident the full scope of damage is known and covered.