By The Perazzo Law Firm
The purpose of an insurance policy is to protect the policy holder in the event of a loss, damage or injury that the policy holder is unable to afford. In exchange for payment the insurance company agrees to cover certain losses or injuries.
As our loyal readers know, we have published many articles in the past explaining the insurance claim process and what to do when the insurance company wrongfully denies your claim. However, at times, the insurance company will acknowledge coverage and offer payment without the policy holder having to resort to a protracted litigation process. Unfortunately, the insurance companies do not always offer payment in the interest of the policy holder and instead pay to repair the damage in order to protect their own rights.
Upon suffering an injury in a car accident or in the event your home, or other insured property, is damaged, it is difficult to ascertain the exact amount it would take to treat the injury or fix the damage. In the instances of personal injuries suffered in a car accident, the true extent of the injuries may not be known for days if not weeks. The cost of repair of your vehicle may not be fully known until the repairs have commences. As far the real property, such as your home, the full extent of the damages may not be known right away. Additionally, any delay in treatment or any postponement of repairs may exacerbate the damage or injury and increase the costs.
Insurance companies know the costs and attempt to pay a claim before the damages become fully known. If the insurance company offers to pay a claim early in the claims process, it may be looking out for its own interest by attempting to cut its losses. Knowing the costs of treatment or repair will only increase with time, the insurance company will try to settle the claim as soon as possible.
A recent trend has emerged where claims are settled early on and payment is issued with a condition that absolves the insurance company of any further or additional claims for the same event. That is, if you accept the payment offered right away you may be waiving any right you have to claim additional damages later on when they are discovered. This tactic allows the insurance carrier to cut its losses and underpay the claim knowing full well the true costs of treatment and repair will be much higher later on.
Unfortunately, policy holders assume the insurance companies are on their side and accept the payments and sign the documentation releasing the insurance company from any further claims for damages. In doing so, the policy holders are unknowingly allowing the insurance carrier to vastly underpay claims.
Before signing any paperwork that may waive your rights for full and just compensation, please consult a legal professional who is experienced in the fields of property damage and personal injury.
At The Perazzo Law Firm, we pride ourselves in representing the people of Florida and their families. We will always put our clients’ needs at the forefront of the fight against the insurance industry. Our Florida lawyers have dedicated their entire careers in fighting for your rights. Whether you seek compensation for injuries, fighting for justice for wrongful arrest or looking to repair your home, you can rest assured our lawyers will be there for you.
If you or a loved one has suffered an injury, we encourage you to call us at 786 LAWS-411 (786-529-7411) to set up a FREE consultation to discuss your legal rights.