A Delayed Project, A Low Insurance Offer—Now What?
If you’re here, chances are you’re dealing with an insurance claim that’s not going the way it should. Maybe your commercial project was hit by a storm, fire, or vandalism, and now your insurer is dragging their feet, lowballing your payout, or outright denying your claim.
This is a frustrating—and unfortunately common—problem for builders and property owners. Insurance companies are quick to take premiums but often slow to pay out, especially for high-value construction claims. They might claim the damage was pre-existing, that your policy doesn’t cover certain losses, or that the repair costs are much lower than reality.
So, what can you do?
This post will walk you through the biggest challenges commercial builders face when dealing with insurance claims, the tactics insurers use to delay or reduce payouts, and how to fight back effectively. Whether you’re just starting the claims process or already stuck in a battle with your insurer, you’ll find practical steps to protect your project and maximize your settlement.
If you’re tired of waiting for answers or getting the runaround from your insurance company, keep reading—because there are ways to turn this situation around.
Why Insurance Claims for Construction Damage Are So Complicated
Commercial construction projects come with layers of challenges, and insurance claims only add to the mix. If you’ve been through this before, you already know how insurers operate. If this is your first time dealing with a claim, here’s what you can expect.
Common Insurance Issues Builders Face
- Coverage Disputes – Insurers may argue that damage resulted from “wear and tear” rather than a covered event like a storm, fire, or vandalism.
- Lowball Repair Estimates – Many adjusters have limited experience with commercial construction, leading to undervalued repair estimates.
- Pre-Existing Condition Denials – If you’re working on a renovation, insurers may claim the damage existed before the project began.
- Slow Processing = Costly Delays – Time is money. If insurers drag their feet, contractors may be forced to cover costs upfront to avoid further setbacks.
Understanding Policy Language: What’s Covered & What’s Not
One of the biggest mistakes builders and property owners make is assuming they know exactly what their policy covers—until they file a claim.
Insurance policies are loaded with industry jargon, and insurers often take advantage of vague or technical language to limit payouts. Here’s what you need to know about common policy terms that can impact your claim.
Key Coverages to Look For
- Builder’s Risk Insurance – Protects buildings under construction from fire, wind, theft, and vandalism.
- Business Interruption Coverage – Reimburses lost income due to delays caused by covered damages.
- Ordinance & Law Coverage – Pays for required upgrades when repairing or rebuilding to meet updated building codes.
- Equipment & Materials Coverage – Covers stolen or damaged tools, heavy machinery, and construction materials.
Common Policy Exclusions That May Impact Your Claim
- Wear and Tear – Insurers often deny claims by saying damage resulted from aging materials rather than an accident or covered event.
- Improper Maintenance – If the insurer believes a problem could have been prevented with better upkeep, they may refuse to pay.
- Earth Movement & Flooding – Standard policies may not cover floods, earthquakes, or soil shifts unless specifically added.
- Acts of War or Terrorism – Some policies exclude damage caused by riots or civil unrest.
Reviewing your policy with a public adjuster before a claim arises can ensure you fully understand what is covered.
How to Speed Up the Insurance Claim Process
A slow claim settlement can stall a project for months. Insurance companies often delay payouts, but there are steps you can take to move things along.
Actionable Steps to Prevent Claim Delays
- File Your Claim Immediately – The sooner you report damage, the harder it is for the insurer to argue it was “pre-existing.”
- Document Everything in Real-Time – Before-and-after photos, time-stamped videos, and written reports from contractors strengthen your claim.
- Keep All Communication in Writing – Phone calls don’t leave a paper trail. Emails, letters, and official reports help protect your claim.
- Follow Up Regularly – Insurers count on claimants forgetting to check in. Set reminders to follow up weekly for status updates.
- Consult a Public Adjuster Early – If your claim is high-value or complicated, getting expert help upfront can prevent costly mistakes.
How to Dispute a Low Insurance Offer
The first offer from the insurer is rarely the best. Negotiation is part of the process, and having an advocate on your side can make a huge difference.
Steps to Dispute a Lowball Settlement
- Request a Detailed Breakdown – Ask the insurer how they calculated the offer. Demand to see the adjuster’s full report and cost estimates.
- Compare It to Your Own Estimates – Get multiple repair quotes from contractors to counter their low estimate. If their numbers don’t match industry rates, push back with real market data.
- Point Out Policy Violations – Review your policy—are they ignoring coverage you’ve paid for? If they misinterpreted language, request a second review.
- Get a Public Adjuster to Negotiate – Many insurers increase their offer once a public adjuster gets involved. Experienced negotiators know exactly how to pressure insurers into a fair payout.
If the insurer refuses to budge, filing a formal complaint with the state’s Department of Insurance can escalate the issue quickly.
When to Escalate: Mediation, Appraisal & Legal Action
If the insurance company continues delaying, denying, or underpaying your claim, you have options beyond waiting around.
Option 1: Mediation (Fastest Resolution)
- A neutral third party helps resolve disputes without a lawsuit.
- Often used when the disagreement is over claim value rather than denial.
Option 2: Insurance Appraisal Process
- If you and the insurer disagree on damage costs, a third-party appraiser can step in.
- This is not a lawsuit but a legally binding process to settle the payout.
Option 3: Litigation (Last Resort)
- If all else fails, you can sue the insurance company for bad faith practices.
- This can take months or years, so mediation or public adjusters are often faster solutions.
Many disputes never reach litigation because public adjusters resolve them before it gets that far.
YPA Adjusters: Your Advocate in Insurance Disputes
At the end of the day, insurance companies don’t exist to make payouts easy. Their goal is to minimize claims, maximize profits, and drag out settlements until policyholders give up.
That’s why working with a public adjuster can make all the difference.
Why Work With YPA Adjusters?
- We Handle the Entire Claims Process for You – From documentation to negotiations, we take the stress off your plate.
- We Fight for Maximum Payouts – Our team knows how to challenge lowball offers and get fair settlements.
- We Speed Up the Process – The longer an insurance dispute drags out, the more it costs you. We help resolve claims faster and more efficiently.
- We Work for You—Not the Insurance Company – Unlike the insurer’s adjusters, our job is to protect your best interests.
FAQs About Public Adjusters and Insurance Claims for Construction Delays & Property Damage
If you’ve landed on this page, you’re probably dealing with insurance claim issues after property damage or a construction delay. You may have searched for answers about lowball settlements, denied claims, or insurer delays. Below, we answer some of the most common concerns that public adjusters like YPA Adjusters can help with.
My insurance company says my claim is under review, but it’s been months. What can I do?
Insurance companies are required to process claims within a reasonable time, but they often use stalling tactics to delay payouts. A public adjuster can step in, demand a response, and escalate the claim if necessary. In many cases, simply involving a public adjuster speeds up the process because insurers know they can’t drag their feet without consequences.
The insurance adjuster’s estimate is much lower than my contractor’s estimate. Can I dispute it?
Yes. Insurance company adjusters often undervalue claims by using pricing that doesn’t reflect current market rates for materials and labor. A public adjuster can provide an independent damage assessment, gather competitive repair estimates, and negotiate for a higher payout that covers the full cost of rebuilding.
My insurer says the damage was “pre-existing” and won’t cover it. Can I fight this?
Insurers frequently misuse the “pre-existing damage” argument to deny claims, especially on renovation projects. A public adjuster can review project records, timelines, and policy language to challenge an unfair denial. If the damage was clearly caused by a covered event (fire, storm, vandalism, etc.), you have grounds to fight back.
My claim was denied due to “wear and tear.” Can a public adjuster help?
Yes. “Wear and tear” is a common excuse insurers use to reject claims, but they must provide proof. If the damage was sudden (e.g., a pipe burst, windstorm, or equipment failure), a public adjuster can build a case proving it wasn’t just deterioration over time.
Can a public adjuster help if my claim has already been closed?
Yes, in many cases. If your claim was denied or you accepted a low settlement, a public adjuster can reopen it and negotiate for a higher payout. Most states allow claim reopenings within a set timeframe (often up to a year or more). If you’re unsure, contact YPA Adjusters to see if your claim can still be challenged.
My insurance policy includes business interruption coverage, but the insurer won’t pay for my losses. What now?
Insurers often try to narrowly interpret “business interruption” to avoid paying for project delays. A public adjuster can analyze your policy, calculate your financial losses, and argue for full compensation. If the delay was due to a covered event (storm, fire, theft), you may be owed more than the insurer claims.
My project was delayed due to vandalism or theft—can I claim those costs?
Yes, if your builder’s risk policy or property insurance covers vandalism or theft, you should be compensated. A public adjuster can help prove the financial impact of the delay, ensuring that both direct damage costs and related delays are factored into the settlement.
The insurer keeps asking for more documentation. Are they stalling?
Possibly. Insurers sometimes delay payments by repeatedly asking for more paperwork, even when they already have enough information. A public adjuster can push back, organize the necessary documentation efficiently, and demand a timely resolution.
My insurance company says I need to use their contractor. Do I have to?
No. You are not required to use an insurer-recommended contractor. Insurance companies often contract with vendors who work in their interest, not yours. A public adjuster can help verify repair estimates, select independent contractors, and ensure you receive fair compensation.
Can a public adjuster help if my insurer is blaming another contractor for the damage?
Yes. Insurers sometimes try to shift responsibility onto contractors to avoid paying claims. A public adjuster can review project agreements, site reports, and liability policies to push back against wrongful blame and ensure you receive a fair payout.
My policy includes “code upgrade” coverage, but the insurer says I have to pay for required updates myself. Is this right?
If your policy includes ordinance and law coverage, your insurer should cover the cost of bringing your building up to code after a covered event. Public adjusters are experienced in fighting for this coverage when insurers try to avoid paying.
Can I hire a public adjuster even if I already filed a claim?
Absolutely. Even if your claim is already in progress, a public adjuster can step in, review it, and take over negotiations. If you’re unhappy with the process or the offer you’ve received, a public adjuster can work to secure a higher payout.
What’s the difference between a public adjuster and a lawyer?
A public adjuster handles negotiations with the insurance company, evaluates damages, and works to maximize your claim. A lawyer is needed if the dispute becomes a legal battle (such as filing a lawsuit against the insurer). In most cases, a public adjuster can resolve claim issues without the need for legal action.
How does a public adjuster get paid?
Public adjusters work on a contingency basis, meaning they only get paid if you receive a settlement. Their fee is usually a percentage of the claim payout, so they are motivated to get you the highest amount possible.
How long does it take for a public adjuster to resolve a claim?
It depends on the complexity of the claim, but public adjusters typically resolve claims faster than if a policyholder negotiates alone. Many cases are settled within weeks or months instead of dragging on for years.
Don’t Let an Insurance Claim Derail Your Project—Take Action Now
Delays in insurance settlements can cost builders hundreds of thousands of dollars in lost time, penalties, and labor expenses. Don’t wait for the insurance company to act on their timeline—take control of your claim today.
📞 Call YPA Adjusters at (682) 267-0336 now for a free claim review. Let’s get your project back on track—without the insurance headaches.