Handling insurance claims as a contractor can be tricky, especially in a complex state like Florida, where natural disasters like hurricanes are common. Whether you’re dealing with a homeowner’s insurance  or working on a commercial project, navigating the insurance process comes with its fair share of challenges. If you’re not careful, these challenges can quickly turn into costly mistakes. In this article, we’ll explore the top mistakes contractors in Florida often make when dealing with insurance claims and how to avoid them.

1. Not Getting Proper Documentation

Documentation is key to any successful insurance claim. However, many contractors neglect this step, assuming that photos and a general description of the damage are enough. Without proper documentation, you risk having your claim delayed or denied.

How to Avoid It:

Make sure you take detailed photos and videos before, during, and after the repair process. Document everything from the damage itself to the materials used for repairs. Keep a detailed log of your work, including dates, times, and any conversations you have with the property owner or insurance adjuster.

2. Overestimating or Underestimating the Damage

Misjudging the scope of the damage is a common mistake. Overestimating the damage may raise red flags with insurance companies, leading to increased scrutiny or even denial of the claim. On the other hand, underestimating the damage may result in insufficient funds to complete the repairs.

How to Avoid It:

Get a professional damage assessment from an experienced adjuster or use software designed for damage estimation. This will give you a more accurate scope of the work needed and help you avoid under- or overestimating the damage.

3. Ignoring Building Codes and Regulations

Florida has stringent building codes, especially when it comes to hurricane damage and repairs. Ignoring these regulations not only jeopardizes the project but can also void the insurance claim. If the work doesn’t meet code requirements, the insurer may refuse to pay out.

How to Avoid It:

Stay informed about the current building codes and regulations specific to your area. Always ensure that your work complies with these codes, even if the property owner pressures you to cut corners to save costs. This is especially crucial in hurricane-prone areas, where stricter codes apply.

4. Not Keeping Communication Open with the Insurance Adjuster

Many contractors fall into the trap of working independently without maintaining open communication with the insurance adjuster. If you fail to provide regular updates or neglect to notify them about changes to the scope of work, it could result in disputes when it’s time to settle the claim.

How to Avoid It:

Keep a clear line of communication with the insurance adjuster throughout the entire process. Notify them of any changes to the project or any additional damage discovered after work begins. Being transparent can help avoid unnecessary delays or disagreements.

5. Not Having a Signed Contract Before Starting Work

It can be tempting to start work immediately, especially when dealing with urgent repairs after a storm. However, starting work without a signed contract is a major mistake. If the claim is denied or the property owner disputes your work, you could be left without payment.

How to Avoid It:

Always have a signed contract in place before starting any work. The contract should outline the scope of the project, estimated costs, payment terms, and a contingency plan if the insurance claim is denied. This protects you in case of any disagreements down the line.

6. Relying Solely on the Insurance Company’s Adjuster

While insurance company adjusters are responsible for assessing the damage, relying solely on their evaluation can be a mistake. The adjuster works for the insurance company, and their assessment may not always align with the contractor’s or property owner’s interests.

How to Avoid It:

Consider hiring a public adjuster to provide an independent evaluation. Public adjusters work on behalf of the property owner and can offer a second opinion that might better reflect the true cost of repairs. This can be particularly helpful if there’s a disagreement with the insurance company’s assessment.

7. Failing to Follow Up on the Claim Status

After submitting a claim, some contractors assume the process will take care of itself. Unfortunately, insurance claims can get delayed or lost in bureaucracy. If you’re not actively following up, the claim may fall through the cracks, resulting in delayed payments and frustrated clients.

How to Avoid It:

Set reminders to follow up with the insurance company regularly. Keep the lines of communication open and be proactive about checking the claim status. This ensures that the process moves forward as smoothly as possible, and you can catch any issues early on.

8. Overlooking Small Damages

In an effort to expedite repairs, contractors might focus solely on major damages and overlook smaller issues. However, even small damages can add up and affect the overall claim.

How to Avoid It:

Conduct a thorough inspection of the entire property before finalizing your report. Address even minor damages, as they can compound over time and lead to bigger issues if left unresolved. Including these in your claim ensures you won’t have to revisit the property for additional work later.

9. Inadequate Record Keeping

Not keeping detailed records of costs, invoices, and communication can hurt you during the insurance claim process. Without proper documentation, you may struggle to justify your claim or dispute any discrepancies with the insurance company.

How to Avoid It:

Maintain organized records of all expenses, invoices, and communication related to the project. Use digital tools or software that allows you to track everything in one place. If a dispute arises, having this information readily available can save time and frustration.

Conclusion

Navigating the insurance claim process as a contractor in Florida can be challenging, but avoiding these common mistakes can make it smoother and more profitable. keeping thorough documentation, and maintaining clear communication, you can increase your chances of a successful claim. Always ensure you’re compliant with local codes and regulations, and don’t hesitate to seek professional advice when needed. Taking these steps can help protect your business, avoid costly delays, and improve your client relationships.