When dealing with an insurance claim, most policyholders expect their insurer to fairly evaluate and pay out what they’re owed. However, insurance companies are businesses first, and their goal is to protect their bottom line.
In many cases, insurers underpay claims, leaving policyholders struggling to cover repairs, medical expenses, or other losses. At Red Dirt Legal, we help Oklahoma policyholders push back against unfair insurance tactics and fight for the compensation they deserve.
Why Do Insurance Companies Underpay Claims?
Underpayment of claims is a common issue, and it often comes down to insurers using tactics to minimize payouts. Whether it’s a homeowners insurance claim, a car accident claim, or a commercial property claim, these are some of the most frequent reasons insurers shortchange policyholders:
Misinterpretation of Policy Language
Insurance policies are filled with dense legal wording, and insurers may use this to their advantage. They might claim that certain damages or losses aren’t covered under the policy, even when they should be. Many policyholders accept these explanations without realizing they may have grounds to challenge them.
Lowball Initial Offers
A common tactic is to offer an initial settlement that is far lower than the true value of the claim. The hope is that policyholders will accept the offer out of frustration or financial desperation rather than push for a fairer payout.
Disputing the Cause of Damage
Insurers may argue that the damage resulted from an excluded cause, such as “pre-existing damage” or “poor maintenance.” This is especially common in property insurance claims, where insurers might claim that storm damage was actually due to normal wear and tear.
Undervaluing Repairs or Medical Costs
Insurance companies often use their preferred contractors or adjusters to assess damage, and their estimates may be significantly lower than actual repair costs. Similarly, in medical claims, they may argue that certain treatments were unnecessary or overestimated in cost.
Delays in Processing the Claim
Delays can work in the insurer’s favor. If they take long enough to process a claim, the policyholder may become impatient and accept a lower settlement just to move forward. In some cases, delays can be so extreme that policyholders simply give up.
Using Biased Experts
Insurance companies often send their own adjusters or engineers to inspect damages. These professionals may have a financial incentive to minimize payouts by downplaying the extent of damage or attributing it to causes not covered under the policy.
Denying Certain Losses as “Unnecessary”
If a claim includes multiple expenses, an insurer may try to exclude certain costs by arguing they are unnecessary. For example, if a homeowner needs temporary housing due to a disaster, the insurer might argue that the accommodations chosen were too expensive and only approve partial reimbursement.
What to Do If Your Claim Has Been Underpaid in Oklahoma
If your insurance company isn’t offering what your claim is worth, you don’t have to accept it. Here’s what you can do:
- Review Your Policy Carefully: Make sure you fully understand what is covered and compare it to the insurer’s explanation for underpayment.
- Get an Independent Estimate: If the insurer’s valuation seems too low, seek an independent contractor, medical professional, or public adjuster’s opinion.
- Request a Detailed Breakdown: Ask the insurer for a full explanation of how they arrived at the settlement amount.
- Document Everything: Keep records of all communications, receipts, and independent assessments.
- Consult an Attorney: If the insurer refuses to budge, working with a lawyer can help you challenge the decision and pursue the compensation you deserve.
How Red Dirt Legal Can Help
At Red Dirt Legal, we are committed to helping Oklahoma policyholders take on insurance companies that unfairly underpay claims. We understand the tactics insurers use, and we’re prepared to fight for your rights. Whether you’re dealing with a homeowners insurance dispute, a commercial insurance claim, or a personal injury settlement, we can guide you through the process and help you recover the full amount you’re owed.
If you believe your claim has been underpaid, don’t settle for less than what you deserve. Contact Red Dirt Legal today to discuss your options and take the next steps toward getting fair compensation.
