When disaster strikes and you suffer a significant property loss, the first thing you hope for is the support of your insurance company. After all, that’s what you’ve been paying your premiums for – peace of mind and protection. However, it’s important to recognize that insurance companies are profit-driven businesses, and their primary goal is to maximize their own financial interests. Unfortunately, this can sometimes result in a misalignment of priorities, leaving policyholders feeling betrayed and undervalued. In this blog post, we will shed light on why insurance companies may not always have your best interests in mind after a large property loss.

Profit Motivation:
Insurance companies are profit-oriented entities, responsible to their shareholders and investors. As such, their priority is to minimize expenses and maximize profits. When a large property loss occurs, it represents a significant financial liability for the insurance company. Consequently, they may resort to tactics aimed at reducing their payout and protecting their bottom line. This can manifest in delayed claim processing, undervaluation of losses, or even outright denial of legitimate claims.

Policy Exclusions and Fine Print:
Property insurance policies are laden with exclusions and fine print that often goes unnoticed by policyholders. Insurance companies exploit these intricate clauses to their advantage, potentially denying coverage for certain types of damages or losses. It is crucial for policyholders to thoroughly review their policy documents and understand the extent of their coverage before a loss occurs. In many cases, the insurance company’s interest lies in interpreting policy terms in a manner that limits their liability, even if it means leaving the policyholder vulnerable.

Loss Adjusters and Claims Handling:
After a large property loss, insurance companies typically assign loss adjusters to assess the extent of the damage and calculate the claim payout. While loss adjusters are meant to be impartial, they often work directly for the insurance company or are contracted by them. This arrangement can create a conflict of interest, as the adjuster may be inclined to downplay the damages or find ways to minimize the claim amount. Consequently, policyholders may find themselves at a disadvantage when negotiating with these professionals who ultimately represent the interests of the insurance company.

Cost-Cutting Measures:
To mitigate their financial burden after a large property loss, insurance companies may resort to cost-cutting measures that can be detrimental to policyholders. This can include hiring contractors or suppliers who offer lower-quality services or materials, resulting in subpar repairs or replacements. In some cases, insurance companies may also pressure policyholders into settling for less than the true value of their losses, leaving them in a compromised position.

Settlement Offers and Dispute Resolution:
When it comes to settling claims, insurance companies may make initial offers that are significantly lower than what policyholders are entitled to. These lowball offers often require negotiation and persistence from the policyholder to achieve a fair settlement. Insurance companies have teams of legal experts and resources to defend their interests, potentially making it difficult for policyholders to assert their rights. Engaging in dispute resolution processes, such as mediation or arbitration, can also be an uphill battle for policyholders, as the insurance company may hold more power and resources in these proceedings.


While insurance companies are meant to provide a safety net for policyholders in times of need, it is important to recognize that their primary objective is to protect their own financial interests. Policyholders should approach the claims process with vigilance and be prepared to advocate for their rights. Thoroughly understanding policy terms, documenting losses diligently, seeking independent assessments, and, if necessary, consulting legal professionals can help level the playing field. By being informed and proactive, policyholders can increase their chances of receiving fair compensation

Skipton and Associates, Inc.