Deciding whether or not to accept an insurance company’s settlement offer is an important decision – one that can have long-term consequences for your future as a wildfire victim. It is critical to understand the true value of your wildfire claim before saying yes to a settlement or signing anything. Approaching insurance negotiations with the right information can make all the difference.
Why Is the Initial Offer Often Too Low?
No matter what your insurance company promises you, its bottom line will always come before your financial well-being. Insurance companies are for-profit businesses that wish to protect their investors first and foremost. Unfortunately, this means that claimants are often subject to unfair and even deceitful business practices during wildfire insurance claims in California.
One of the most common tactics used to save money on payouts is to set the initial settlement offer intentionally low. This is done in the hope that the claimant will be eager to accept the first settlement without further negotiations to end the claim and get paid. It is also to the insurance company’s benefit if the claimant does not yet understand the full ramifications of a wildfire or how this will translate into additional financial losses in the future.
Don’t Accept Without Verifying the Value of Your Claim
As a general rule of thumb, you should never accept a settlement offer from an insurance company during a wildfire claim without first verifying that the amount is fair and reasonable based on your circumstances, the degree of your losses, and the terms and limits on your policy. This may require bringing your case to a wildfire attorney for an evaluation that you can trust. Victims of the recent LA fires should consider consulting with an Eaton Fire lawyer to asses the value of your claim against the insurance’s offer.
Unlike an insurance company, a lawyer will want to maximize your financial damages in the aftermath of a devastating wildfire. You can receive a fair, honest and accurate valuation of how much your insurance claim is worth. Then, you or your attorney can use this information to your advantage during settlement negotiations.
Be Aware of Claim Deadlines
Something else to consider before you decide to accept a wildfire insurance settlement is the time restrictions this may trigger. Under laws that were enacted in California in 2021, homeowners who suffer losses during a state of emergency can be subject to a time limit of less than three years from the date that they receive the first payment toward the actual cash value of the property to claim full replacement costs.
This means that once you accept an insurance settlement for wildfire damage, you will have no more than 36 months from the date that you obtain the first payment to collect your full property repair or replacement costs. While extensions to this deadline are available, you must remember to ask for them before your time limit expires.
Consult With an Attorney for Personalized Legal Advice
Every wildfire insurance claim is unique. For this reason, it is important to seek counsel from an experienced wildfire attorney in California before making any final decisions about your claim or settlement. You may be entitled to much more than an insurance company is initially offering you. Once you accept, you cannot reopen your case.
The attorneys at Bridgford, Gleason & Artinian can review your case at no cost to provide you with personalized legal advice about how to move forward. If we offer to represent you, our law firm can take over settlement negotiations to fight for the best possible payout. If necessary, we can represent you during a wildfire trial in California for maximum compensation. We are committed to seeking full recoveries for our clients.