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  • Writer's pictureBrenda Heffner

From Disaster to Dollars: Uncovering Hidden Coverage in Property Insurance Policies

When disaster strikes, property owners turn to their insurance policies for financial protection and peace of mind. As a public adjuster, it's your responsibility to ensure that your clients receive the compensation they deserve. But navigating the intricacies of property insurance policies can be a daunting task, especially when it comes to identifying hidden coverage. In this blog post, we'll explore the secrets to uncovering hidden coverage in property insurance policies, empowering you to maximize claim payouts for your clients.

Know the policy inside and out. In other words READ THE F'n POLICY!

The first step in uncovering hidden coverage is to develop a comprehensive understanding of your client's insurance policy. You usually will only receive the dec pages if your lucky. One of the first things you should do after sending your LOR to the carrier is request that you receive a copy of the policy for your review. This includes not only the declarations page but also the policy forms, endorsements, and any applicable riders. Familiarize yourself with the policy language, coverage limits, and exclusions to gain a solid foundation for your investigation.

Look for ambiguous language

Insurance policies are notorious for their complex and often confusing language. Ambiguities in policy language can work to your client's advantage, as courts typically interpret ambiguous terms in favor of the policyholder. Keep an eye out for any unclear or contradictory language that could potentially expand the scope of coverage.

Identify additional living expenses (ALE) coverage

Many property insurance policies include coverage for additional living expenses (ALE), which compensates policyholders for the increased costs of living incurred due to a covered loss. This may include expenses such as temporary housing, meals, and transportation. Be sure to review the policy for ALE coverage and calculate the appropriate reimbursement for your client.

Investigate code upgrade coverage

In the aftermath of a disaster, local building codes may require property owners to make upgrades to their damaged structures. Some insurance policies include coverage for these code upgrades, also known as ordinance or law coverage. This can be a significant source of hidden coverage, as the cost of compliance with new building codes can be substantial. Review the policy for any provisions related to code upgrade coverage and work with a construction expert to determine the cost of any required upgrades.

Check for extended replacement cost coverage

Extended replacement cost coverage is an optional endorsement that provides additional coverage beyond the policy's stated limits. This can be particularly valuable in cases where the cost to rebuild or repair a property exceeds the coverage limits due to factors such as increased construction costs or material shortages. Review the policy for any extended replacement cost endorsements and calculate the additional coverage available to your client.

Explore potential endorsements and riders

Endorsements and riders are add-ons to a standard insurance policy that provide additional coverage for specific risks or circumstances. Common endorsements in property insurance policies include coverage for water backup, mold, and high-value personal property. Review the policy for any endorsements or riders that may apply to your client's claim and incorporate them into your settlement negotiation strategy.


Uncovering hidden coverage in property insurance policies is a critical skill for public adjusters seeking to maximize claim payouts for their clients. By familiarizing yourself with the policy language, investigating potential endorsements and riders, and looking for opportunities to expand coverage through ambiguous language, you can help your clients receive the compensation they deserve after a disaster. Remember, your expertise and diligence can make all the difference in turning a disaster into dollars for your clients.

If you are thinking about becoming a PA and have a passion to help and protect people / the insured, or are just starting out and want to join a superior top notch Public Adjusting firm get in touch with us.

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