Hidden Damage, Hidden Costs: What Many Insurance Claims Miss

As winter storms and prolonged freezing temperatures continue to impact the region, property damage claims are rising at a pace that has caught many homeowners off guard. Reports of burst pipes, ice dams, electrical fires, and water intrusion have increased significantly, particularly in older homes and commercial buildings not designed for prolonged cold snaps. While the damage itself is often visible, experts warn that the full extent of loss is frequently hidden behind walls, ceilings, and flooring.

Insurance industry data shows that many claims are initially assessed within days of being reported, sometimes before moisture has fully migrated or secondary damage has developed. Investigators say this rapid response can lead to underreported losses, as early inspections may overlook mold potential, insulation saturation, structural weakening, and code-required upgrades. Once a claim is settled and closed, policyholders may have limited options to recover additional funds.

Consumer advocates point to a growing knowledge gap between insurance carriers and policyholders. Policies are complex, coverage language is often misunderstood, and exclusions or depreciation clauses may significantly reduce payouts if not properly challenged. In many cases, property owners unknowingly accept settlements that fall short of what their policies actually allow, leaving them responsible for tens of thousands of dollars in repairs.

Public adjusters, who are licensed by the state and represent policyholders rather than insurance companies, are increasingly being recommended as a safeguard in larger or more complicated claims. Their role includes documenting damage in detail, identifying coverage that may not be immediately obvious, and negotiating directly with insurance carriers. Experts emphasize that involving an advocate early in the process, before permanent repairs or settlement agreements are made, can significantly impact the outcome of a claim.

Investigations have also highlighted that many homeowners are unaware they have the right to representation during the claims process. While insurance adjusters work for the carrier, public adjusters work exclusively for the policyholder, helping to level an often-uneven playing field. Consumer protection specialists advise homeowners to ask who an adjuster represents and to seek independent guidance when significant damage is involved.

Property owners experiencing recent damage are encouraged to carefully review their coverage, document conditions thoroughly, and avoid rushing into settlements under pressure. For those seeking claim advocacy or additional information, Advocate Claims Services (ACS) provides licensed public adjusting services and can be reached at 855-ACS-2-WIN or acsadjusters.com.