Common Tactics Used by Insurance Companies to Reduce Payout

Common Tactics Used by Insurance Companies to Reduce Payout


When you file an insurance claim, you expect your insurance company to take care of you and provide you with the necessary compensation for your losses. Unfortunately, this is not always the case. Insurance companies are businesses, and their main objective is to make a profit. As a result, they will often employ certain tactics to reduce the payout they owe you. In this blog post, we will discuss some of the common tactics used by insurance companies to reduce payout.


1. Delaying the Claim Settlement

One of the most common tactics used by insurance companies is to delay the claim settlement. They may drag their feet in processing your claim, hoping that you will eventually give up and settle for a lower amount. They may also ask for additional documentation or information that seems unnecessary or redundant, dragging out the process even further.

2. Disputing Liability

Insurance companies may attempt to dispute liability for your claim in an attempt to reduce or deny your payout. They may argue that you were partially or wholly responsible for the damages, or that the damages were pre-existing or caused by something other than what you claimed.

3. Lowballing

Another common tactic used by insurance companies is to lowball you with a settlement offer. They may attempt to settle for an amount that is much lower than what you are entitled to, in the hopes that you will accept it just to get something rather than fighting for what you are owed.

4. Misrepresenting Coverage

Insurance companies may also misrepresent your policy coverage in an attempt to reduce your payout. They may claim that certain parts of your claim are not covered, when in fact they are. Alternatively, they may deny your claim entirely by claiming that the incident or damage was not covered under your policy.

5. Using In-House Adjusters

Finally, insurance companies may use in-house adjusters to handle your claim rather than an independent adjuster. While in-house adjusters are technically supposed to be impartial, they are still employees of the insurance company. As a result, they may be more likely to find ways to reduce your payout and protect their employer's bottom line.



Overall, insurance companies are not always your friend when it comes to filing a claim. They employ several tactics to reduce the payout they owe you, including delaying the claim settlement, disputing liability, lowballing settlement offers, misrepresenting coverage, and using in-house adjusters. The best way to protect yourself is to work with a public claims adjuster in Orlando, FL, such as Ultra Property Damage. By hiring a public adjuster, you can have an advocate on your side who is solely focused on getting you the compensation you deserve. Contact Ultra Property Damage today for a free consultation and let us help you get the payout you are entitled to.

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