FAQ

What Does My Insurance Policy Cover?

The coverage provided by your insurance policy depends on the type of policy and the specific risks it is designed to protect you against. There are various types of risks that insurance may cover:

• Property Risk: This covers damage to your property. For example, property risk insurance may apply to your home, building, or vehicle.
• Liability Risk: This protects you if you are sued or face potential lawsuits. Liability insurance is often required for automobiles, and businesses with frequent customer traffic typically carry liability coverage. Homeowners’ policies may also include general liability coverage.
• Other Policies: Different policies like life insurance, health insurance, and title insurance cover specific types of risk or loss.

Your policy may also have exclusions, which must be clearly outlined. Some policies are legally required to cover certain risks. For instance, a Florida residential property insurance policy must cover hurricane damage unless the property is in a windpool area or the policyholder explicitly rejects that coverage.

What Should I Do To Make a Claim?

Each insurance policy has its own process for making a claim. To start the process, contact your insurance company. However, be cautious—anything you say may be used to deny your claim or reduce the settlement amount. It's wise to have an attorney assist you with the claims process to protect your interests.

What Can I Do If My Insurance Company Offers an Amount Below the Value of the Damage?

Insurance companies are businesses focused on minimizing their expenses, so they often offer the lowest possible settlement. This can involve undervaluing your property, using lower-cost repair estimates, or blaming you for contributing to the damage.

It’s important to remember that the initial offer is just that—an offer. You are not obligated to accept it. A lawyer can negotiate on your behalf to secure a settlement that more accurately reflects the full value of your damages. If they refuse to offer a fair amount, your attorney can take legal action.

What Do I Do If My Insurance Company Denies My Claim?

Insurance companies commonly deny claims by arguing that the cause of damage is not covered under your policy or falls under an exclusion.

In such cases, the insurer will interpret the policy in their favor, often broadly applying exclusions and narrowly defining what is covered.

You don’t have to accept a claim denial. Your attorney can challenge the denial, demand payment, and negotiate a fair settlement. If necessary, your lawyer can take legal action against the insurance company.

What is Actual Cash Value, and What is Replacement Value?

Actual Cash Value (ACV): This is the value of your property at the time of loss, factoring in depreciation. As a result, ACV is usually lower than the cost of replacing the property.

Replacement Value: This represents the cost to replace the damaged property with a new item of similar type and quality, essentially making you whole again.
The type of compensation you receive will depend on your policy. In some cases, this may be open to interpretation, with the insurance company often favoring a lower payout.

How Much Do an Insurance Lawyer’s Services Cost?

The cost of hiring an insurance lawyer depends on your situation. At Tarrash & Tarrash, we provide an initial free consultation to assess your case and offer an estimate of the costs before you make any decisions.

Under Florida Statute § 627.428, if you win a judgment against your insurance company, you are entitled to reasonable attorney’s fees, which may help cover the cost of legal services.

If you have been paying your insurance premiums and your policy includes coverage for flood or water damage, it is important to know that you can pursue your insurance company for compensation related to your property damage. Contact us today 954-666-5881