Property damage is harm to real or personal property. It can result from intentional acts, such as arson or vandalism, or negligence, such as car damage from a collision. Natural disasters, including floods, tornados, windstorms, and hurricanes, also cause property damage.
Businesses and homeowners may lose everything. The cost to replace or repair the damage could be significant. Property damage insurance may cover some or all the costs, depending on the coverage. In cases of intentional or negligent acts, the property owner can sue the responsible party for damages.
Filing a Lawsuit for a Property Damage Claim in Hamilton, ON
If someone caused damage to your property, you may recover damages from that person. If they have liability insurance coverage that applies, their insurance company may pay your claim. Otherwise, you will need to pursue a personal injury claim against them if they refuse to pay for the damages.
Generally, for a personal injury claim, you need to prove that the party owed you a duty of care and breached their duty of care. Then, you must prove that the party’s actions caused the accident and you incurred damages. For an intentional act, you would need to prove that the person meant to cause the property damage.
Seeking an Insurance Settlement for a Property Damage Claim
Your insurance may cover the damage to your property. The first step is to read your insurance policy to determine whether the incident is covered. For example, some insurance policies exclude damage from floods.
Talk with a personal injury lawyer if you are unsure whether your insurance policy covers your loss. Insurance companies may act in bad faith and deny valid claims. They also tend to undervalue damages to avoid paying high claims.
What Should I Do if I Have Incurred Property Damage?
There are steps you can take after an accident or incident damages your property to improve your chances of recovering a fair settlement. You should:
- Report the loss to the insurance company immediately. When you report the loss, do not guess or speculate. Only tell the company the facts you know.
- Document the property damage. Take videos and pictures of the property. If possible, choose the setting on your camera that adds the date to the pictures.
- Prepare an inventory of the damaged or destroyed contents. Having photos of the before-and-after results can make the claims process easier.
- Refrain from providing a written or recorded statement without legal advice. The adjuster hopes you will make an innocent comment that could give the company a reason to deny the claim.
- Seek a lawyer’s help with the proof of loss form. The proof of loss form is a sworn affidavit stating that all information is true and accurate. A misstatement could cause your claim to be denied.
The insurance company may make a settlement offer soon after you file the claim. If so, carefully review the offer to ensure it is fair. If you are unsure, talk with a lawyer.
The company may deny your claim for many reasons. It should give you a written statement explaining why it has denied the claim. Take this letter to a lawyer as soon as possible to discuss your legal options.
Insurance Company Bad Faith and Property Damage Claims
Insurance companies have a duty to act in good faith when handling claims. However, companies do not always treat policyholders and claimants fairly. Examples of bad faith insurance practices include:
- Failing to acknowledge and/or investigate a claim
- Unduly delaying decisions about a claim
- Denying a claim without a written explanation
- Intentionally misinterpreting the terms of the policy or the law
- Undervaluing a claim
- Requiring excessive or unnecessary proof and/or documents to process a claim
- Using threats or manipulation
- Failing to pay a claim after receiving the signed settlement and release
- Discouraging a policyholder or claimant from seeking legal advice
- Altering the terms of the insurance contract after a claim is filed
Not all denials of claims are bad faith. If the insurance company has a valid reason to deny the claim, it can do so. The company may also act against the person’s best interests, but that does not mean that they are acting in bad faith.
If you believe the insurance company is acting in bad faith, seek legal advice. You may have a bad faith insurance claim in addition to the property damage claim. Contact a Hamilton property damage lawyer to schedule a free consultation. Call Findlay Personal Injury Lawyers today at 905-522-9799.