Insurance Claims: 5 Major Red Flags That Indicate You Need a Public Adjuster

When dealing with an insurance claim, most people expect their insurance company to provide fair support during difficult times. After all, your policy, until you have a claim, is just a stack of paper; a promise to pay for your covered claim. That said, there are more and more situations now where insurers or adjusters put their own interests above yours, leaving you with a low payout or no payout at all. Here are five major red flags to watch out for when dealing with your insurance company—if you notice any of these, it’s a sign to bring in a public adjuster right away.

1. Low Initial Settlement Offer

One of the clearest signs of trouble is receiving a lowball offer right from the start. Insurers may offer a low amount in the hopes that you’ll accept without further negotiation. They may try to make the offer seem generous or downplay the actual costs you’ll face. If the initial settlement seems suspiciously low or doesn’t cover your documented losses, it’s a strong sign that you need a public adjuster to help re-evaluate and negotiate a fair payout. If your gut feelings tells you there is something odd about the settlement, it probably is – listen to your instincts, they are often right, or at least partially right. 

2. Delays, Delays, and More Delays

If your insurer is stalling at every step, it’s a major red flag. This could mean they’re trying to exhaust you into accepting a lower offer or hoping that additional damage occurs so they can deny coverage. Unexplained delays in processing claims, returning calls, or scheduling inspections may be intentional. A public adjuster will keep things moving, pressing the insurer to stick to timelines and preventing further delays. Delays on a claim are like dirty laundry – if you let them pile up, it’s much harder to catch up – don’t let it happen to you. 

3. Requests for Excessive Documentation or Repeated Inspections

It’s normal for an insurance company to ask for documentation, we agree with this, but if they keep requesting more and more—or scheduling multiple inspections without a clear reason—it could be a tactic to delay or deny the claim. This approach may aim to discourage you from proceeding or to find ways to reduce the payout. Public adjusters are skilled in handling documentation requests, reject irrelevant requests and resume the claim progress to help the insurer streamline the process while protecting your interests.

4. Denial of Coverage Without a Clear Explanation

If your claim is outright denied with little to no explanation, it’s a huge red flag. Insurance companies are required to explain the reason for a denial, referencing specific policy terms. A vague or unclear explanation can indicate an attempt to avoid payment. Often, what we will see before getting a call is an insured who was denied his claim and seeks to actively disprove the denial by showing why it should be covered, to no avail. We receive the call from an exhausted insured who no longer has the energy to fight. In these situations, your public adjuster will review your policy and the denial, identify potential coverage issues, and help you fight for the compensation you’re entitled to.

5. Pressure to Settle Quickly Without Proper Review

If the insurer is pushing you to settle fast, be cautious. Quick settlements can seem convenient, but they’re often designed to get you to accept a lower amount before you’ve fully assessed the extent of the damage. A public adjuster can give you the time needed to understand the true value of your claim, inspect the damage thoroughly, and ensure you’re not rushed into a decision that leaves you short-changed.

Honorable mention

6. File Sent to Fraud Investigations Without Clear Grounds

If your insurance company suddenly sends your claim to their fraud investigations department without a clear explanation, it’s a serious red flag. While fraud investigations are sometimes necessary, they can also be used as a tactic to delay or intimidate policyholders, implying that there’s something suspicious about your claim without providing evidence. This move often leads to extended delays and can make the claim process feel hostile.