Written by Andy Gurczak

April 8, 2022

A Reservation of Rights Letter Was Sent to You. Why?

You filed an insurance claim with your homeowners’ insurance company after a storm damaged your real estate. Of course, you filed the claim within the time period your policy requires. Moreover, the claims adjuster from the insurance company came out to look at the damage. Indeed, he seemed nice. But now you have this letter saying your losses may not be covered. Why did your insurance company send you a reservation of rights letter? Do you need legal advice?

What is a Reservation of Rights Letter?

Reservation of rights letters, or “ROR letters,” are common in the liability insurance industry. In fact, some insurers send these letters on almost any claim they get. They are usually form letters.

Under the terms of your homeowners’ policy, insurance companies agree to provide insurance coverage for certain unexpected events, like hurricanes, falling trees, etc. However, if the insurance company acknowledges that a claim is covered, the insurer may be unable to deny coverage in the future. For instance, intentional acts are typically not covered by homeowners’ insurance. If the company agrees to cover damages from an event, but later finds out the insured acted intentionally, the company may not be able to deny coverage.As an example, a visitor to a home sues the homeowner, alleging he slipped on an icy sidewalk. The insurance company has a duty to defend the homeowner and pay his defense costs. However, the evidence may later show that the homeowner pushed the injured person down while they had a shoving match while drinking a few beers. By failing to send the ROR letter, the company may have to defend the homeowner.

Therefore, most companies issue a reservation of rights letter in case the insurer receives evidence in the future of why a claim may not be covered.

What is an Insurance Non-Waiver Agreement Form?

A non-waiver agreement is a form the insurance company may ask the insured to sign, agreeing that the insurance company may deny coverage in the future. However, the insured does not have to sign it. In fact, most don’t.

Of course, then they get a ROR letter from the carrier.

If You Need a Public Adjuster for a Property Damage Claim, Call AllCity Adjusting

We are a family-owned claims company with five decades of combined adjusting experience. As a result, if there’s one thing we understand, it’s that you need 100% of your claim value.

You have already gone through a tumultuous event. For this reason, get an agency that gets you more.

At AllCity Adjusting we work to ensure you get 100% of your insurance claim value. Equally important, with over 50 years of combined experience as insurance adjusters, we know insurance companies and understand where they cut corners.

Moreover, we help you build a larger claim and maximize your claim value. Indeed, we get you back to normal fast.

Lastly, don’t get fooled. Get the company that gets you more.

Therefore, if you receive a reservation of rights letter, or the company is taking too long to process your claim or you just want to talk to someone on your side, call us at 844.692.3587. Or you can email us at info@allcityadhjusting.com.

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Best way to beat the insurance company is to hire AllCity Adjusting

At AllCity Adjusting we help residential and commercial clients alike get the claims support they need. Moreover, we have over 50 years of combined experience helping get our clients the max settlement time and time again. If your claim has been low balled or denied entirely we can help increase your maximum settlement. Call us today for a FREE consultation. Experience the AllCity difference.

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Salvageable v. Non-Salvageable Property After a Fire

Salvageable v. Non-Salvageable Property After a Fire

If a fire has occurred at your home, your first concern, of course, is the safety of yourself and your family. However, depending on the extent of the fire damage, you will have to resolve the issue of salvageable v. non-salvageable property after a fire. Homeowners’ insurance protects your home itself (Dwelling Coverage) and its contents (Personal Property Coverage). High heat, smoke, and soot can cause extensive damage to your personal property, such as clothes, furniture, hardwood floors, and appliances. For instance, smoke damage causes fabrics, clothes, and soft goods to reek of the smell of smoke. Additionally, smoke and soot can discolor objects and reduce the life span of electronics and machinery. Consequently, you and your insurance company will have to determine which personal property is salvageable v. non-salvageable property after a fire.

Actual Cash Value v. Replacement Cost Value

Actual Cash Value v. Replacement Cost Value

Many homeowners never read their homeowners’ insurance policy. Then a covered loss, like a fire or hurricane, causes extensive damage to the home and contents. Of course, the homeowner files a claim with her insurance company. Eventually, the homeowner gets a claim settlement offer from the home insurance company. However, only then does the homeowner learn the difference between actual cash value v. replacement cost value coverage.

What is an Appraisal Clause in an Insurance Policy?

What is an Appraisal Clause in an Insurance Policy?

Water damage insurance claims are some of the most frequent home insurance claims that homeowners file. However, homeowner insurance does not cover all types of damages caused by water. Therefore, handling water damage insurance claims requires the homeowner to be careful and diligent before and during the claims process.

Homeowners’ Property Damage Claim-Do You Need an Attorney?

Homeowners’ Property Damage Claim-Do You Need an Attorney?

Unfortunately, a terrible storm moved through your area. It left fallen trees and damaged homes in its wake. Your house was one of them. You have never filed a claim with your homeowners’ insurance company. But you now have a homeowners’ property damage claim-do you need an attorney?

How to Negotiate a Fire Damage Insurance Claim

How to Negotiate a Fire Damage Insurance Claim

One of the most traumatic events experienced by homeowners is a fire in their homes. Certainly, the potential for serious injury can be significant. However, the relief that no one was harmed soon fades away as the reality of the property damage sinks in. Now, one key question for the homeowner will be how to negotiate a fire damage insurance claim settlement.

Insurance Claims for Poorly Installed Stucco

Insurance Claims for Poorly Installed Stucco

Stucco is a popular siding used on new developments, homes, and businesses since the early 1900s. Manufacturers make it of cement, limestone, and silica. In fact, it has become very popular in the last 20 years. However, when not installed properly, it can lead to several problems. Therefore, some homeowners will have to file insurance claims for poorly installed stucco.

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