The Important Role of Documentation in Insurance Claims

People and businesses purchase insurance policies expecting that the policy will provide coverage in the event of a loss. Unfortunately, the claim process is often more complex than policyholders anticipate, and simple missteps or oversights can lead to a lower recovery or even an outright denial of your claim. Whether you are a business owner or an individual, you do not have to navigate the claim process alone. Contact an experienced insurance recovery lawyer if you have suffered a significant loss and are concerned that you won’t receive the compensation you deserve.

It’s Not What You Know; It’s What You Can Prove

The outcome of your claim will depend largely on your ability to prove your losses. Even when the cause of loss is known, even when the damages are apparent, and even if your policy should cover the loss, none of that matters unless you can prove it. Approaching your claim with this perspective from the outset will guide you through the process.

The Insurance Company Is Not Your Friend

Insurance companies are for-profit entities. As a general rule, they try to minimize the amount they pay on claims. In some cases, they may even deny claims in bad faith. Insurance companies may use things you say or things you have done against you. For example, the insurance company can deny your claim, partially or entirely, if you fail to comply with their reasonable requests for information, inspections, or testimony under oath.  Until you receive full payment for your claim, do not assume that your insurance company will pay what your claim is worth. Remember, you have the burden to prove your losses.

Documentation Supports Your Claim

Documentation is fundamental to proving your losses. Memories can fade.  Observations can be challenged as subjective or biased. Documenting your claim by taking pictures and videos, taking notes, and keeping copies of all receipts, reports, correspondence and other documents creates a concrete and verifiable record and point of reference for your claim.

You Cannot Challenge the Insurance Company Without Documentation

Your insurance company will conduct its own investigation into your loss and document all of its findings. It is not unusual for their scope of loss to be far less than what the policyholder anticipates. The only way to challenge the insurance company’s findings is with your own documentation.

Thorough Documentation Can Help Maximize Your Recovery 

Unfortunately, many insurance claims deteriorate into disputes over the scope of damages, the claim’s value or the monetary compensation the policyholder is entitled to. Thorough documentation of every single element of your loss demonstrates that you have a good-faith basis for your claim. As a result, the insurance company is likely to take your claim more seriously and is more likely to pay you full and fair compensation.

Documentation Protects You Against Fraud Accusations

Insurance fraud is a nationwide problem, and insurance companies are suspicious of undocumented or poorly documented claims. Even though you submit your claim on a good-faith basis, the process can become much more complex and time-consuming if the insurance company suspects fraud. Thoroughly documenting your claim is the best way to ensure that your claim is handled promptly and fairly.

Suggestions for Documenting Your Claim

It’s simple to advise, “document your claim,” but assembling the necessary documentation can be challenging when faced with a significant loss involving your home or business. Here are some suggestions to help you effectively document your claim:  

• Use your phone. The camera on your phone can be invaluable for documenting your claim. Take photos (or videos, when appropriate) of the damage to your property. Take pictures from multiple angles to ensure you capture the full extent of the damage. Don’t worry about taking too many photos – just make sure they are backed up to a cloud and the metadata is accurate so you can access them later.
• Keep copies of everything. Keep copies of all receipts, invoices, estimates, bills, and correspondence related to your loss. You can use your phone to take pictures of important documents if you can’t get copies or are worried about losing them.
• Keep it organized and accessible. The papers and other documents pile up quickly, so it is essential to keep them organized. How you do it doesn’t matter, so long as you can find what you need. Some people scan everything and manage it on a cloud so that the information can be accessed anywhere. Other people prefer to work with hard copies and might keep separate folders for bills, letters, and miscellaneous documents.

If you feel overwhelmed with managing your claim, contact an experienced insurance recovery lawyer for help. 

Documentation Tells the Story of Your Claim

Ultimately, pursuing a compensation claim is about telling a story. Whether inside or outside the courtroom, the side with the most compelling or persuasive story tends to prevail. The most powerful narrative is built on established, documented facts. Documenting every detail of your claim ensures that you can present a story that a jury will find compelling, even if the insurance company does not. 

Contact Pearson Legal, P.C. for Help with Your Insurance Claim

At Person Legal, we believe that policyholders deserve the coverage they paid for. We can help if your insurance company refuses to pay fair compensation for your claim. Contact us today to schedule a free consultation.