How Insurance Companies Can Reduce Claim Amounts for Mitigation Services

Insurance companies often pay for mitigation services, which are the steps that a policyholder takes to reduce the amount of damage to their property after a loss. However, insurance companies may also reduce the claim amount for mitigation services if they believe the policyholder did not take reasonable and necessary steps to mitigate their damages.

In the YouTube video “How Insurance Companies Can Reduce Claim Amounts for Mitigation Services,” insurance expert Michael D. Smith discusses some of the ways insurance companies can reduce claim amounts for mitigation services. He also provides tips for policyholders to avoid having their claim amount reduced.

One of the ways that insurance companies can reduce claim amounts for mitigation services is by arguing that the policyholder did not take reasonable and necessary steps to mitigate their damages. For example, if a policyholder has a water leak and they do not turn off the water supply, the insurance company may argue that the policyholder did not take reasonable steps to mitigate their damages.

Another way that insurance companies can reduce claim amounts for mitigation services is by arguing that the policyholder made unnecessary repairs. For example, if a policyholder has a water leak and they replace all of the flooring in the affected area, the insurance company may argue that the policyholder made unnecessary repairs.

Finally, insurance companies can also reduce claim amounts for mitigation services by arguing that the policyholder failed to document the mitigation services that they performed. For example, if a policyholder has a water leak and they remove the damaged property from the property, the insurance company may argue that the policyholder failed to document the removal of the property.

Here are some tips for policyholders to avoid having their claim amount reduced for mitigation services:

• Get estimates from multiple contractors for repairs: Get estimates from multiple contractors before you hire anyone to perform renovation services. This will help you to ensure that you are getting a fair price.
• Use a licensed contractor: Use a licensed contractor to perform renovation services. This will help to ensure that the services are performed to a professional standard.
• Document everything: Document all of the mitigation and renovation services that you perform. This includes keeping receipts for all of the costs.
• Be prepared to negotiate: Be prepared to negotiate with the insurance company about the amount of the payout for mitigation and renovation services.

By following these tips, policyholders can help to protect themselves from having their claim amount reduced for mitigation services.

Sources:

• YouTube video: “How Insurance Companies Can Reduce Claim Amounts for Mitigation Services” by Michael D. Smith
• Insurance Information Institute: “Mitigation of Damages”
• National Association of Insurance Commissioners: “Mitigation of Losses”