5 Signs Your Insurance Company Is Underpaying Your Claim

You pay your insurance premiums every month. You've never missed one. Then something happens — a storm rips shingles off your roof, a pipe bursts and floods your basement, a fire tears through your kitchen. You file a claim expecting your insurance company to hold up their end of the deal.

And then the offer comes in. Something feels... off.

You're not imagining it. After 15+ years as a licensed public adjuster in Ohio, I can tell you this: insurance companies underpay claims all the time. Not every company, not every claim — but it happens far more often than most people realize. The insurance industry isn't in the business of writing big checks. They're in the business of keeping money in-house.

Here are five signs your insurance company is shortchanging you — and what you can do about it.

1. They're Playing Depreciation Games

Here's how depreciation is supposed to work: your policy accounts for the age and condition of your property. A 10-year-old roof isn't worth the same as a brand-new one. Fair enough.

But here's what actually happens in a lot of claims: the insurance company over-depreciates everything to shrink your payout. They'll slap aggressive depreciation percentages on items without explaining how they got there. A roof that's got 15 years of useful life left suddenly gets depreciated like it's ready for the landfill.

What to watch for:

• No explanation of depreciation calculations. You should be able to see exactly how they calculated depreciation on every line item. If they hand you a number with no breakdown, that's a red flag.
• Depreciation applied to labor costs. This is a big one. Labor doesn't depreciate. It costs what it costs today. Some carriers try to depreciate labor anyway — and in many cases, that's not appropriate.
• Uniform depreciation rates across different items. A 20-year architectural shingle and aluminum flashing don't age the same way. If everything on your estimate shows the same depreciation percentage, someone took a shortcut at your expense.

Under Ohio Administrative Code Rule 3901-1-54, your insurance company is required to handle claims fairly and in good faith. That means providing you with a reasonable, transparent explanation of how they arrived at your settlement — depreciation included. If they can't explain it, they shouldn't be applying it.

Pro tip: If you have a replacement cost policy, you're entitled to recover that depreciation once repairs are completed. Don't leave that money on the table.

2. Their Repair Estimate Is Suspiciously Low

This is the most common sign of an underpaid insurance claim, and it's the one I see almost every single week.

The insurance company sends out their adjuster. That adjuster writes an estimate. And when you show it to a contractor, the contractor laughs. Or winces. Or both.

Here's how the insurance company lowball works:

• Bottom-barrel material pricing. They'll price your estimate using the cheapest materials available — not what's actually installed in your home or what's needed to match existing finishes.
• Below-market labor rates. Their estimate might use labor rates that no licensed, insured contractor in your area would accept. Good luck finding someone to do the work at those prices.
• Missing line items. This is the sneaky one. They'll "forget" to include necessary work — removal and disposal of damaged materials, permits, code upgrades required by local building codes, overhead and profit for your contractor. These aren't extras. They're real costs.
• Scope that's too narrow. Water damage doesn't stop at the drywall. Smoke doesn't stay in one room. If their estimate only covers the obvious damage and ignores everything behind the walls, underneath the floors, or in adjacent areas, the scope is wrong.

I've reviewed estimates where the insurance company's number was 40-60% below what the repairs actually cost. That's not a rounding error. That's a strategy.

Ohio law requires insurers to pay what it actually costs to repair or replace your damaged property. If their estimate doesn't reflect real-world pricing in your market, you have every right to challenge it.

3. They're Dragging Their Feet

Time is not on your side when you have a damaged home. You've got a tarp on your roof, fans running in your basement, or a family displaced from their house. You need answers. You need a check.

And your insurance company? They need... more time. Always more time.

Classic delay tactics include:

• Repeated requests for documentation you've already provided. You sent the photos. You sent them again. Now they want them in a different format. Or from a different angle. Or on a Tuesday during a full moon.
• Adjuster reassignments. Your claim gets handed to a new adjuster, and suddenly the process resets. The new person "needs to get up to speed." Meanwhile, your damage is getting worse.
• Radio silence. You call, you email, you leave voicemails. Crickets. Days turn into weeks.
• "We're still investigating." Some investigations are legitimate. But when weeks stretch into months with no clear explanation of what they're investigating or why, it's often a pressure tactic.

The goal is simple: wear you down. The longer the process drags on, the more likely you are to accept whatever they offer just to make it stop. Insurance companies know this. It's not accidental.

Ohio Administrative Code Rule 3901-1-54 sets standards for timely claim handling. Insurers are expected to acknowledge communications promptly, conduct reasonable investigations, and avoid unnecessary delays. If your carrier is stonewalling you, they may be in violation of Ohio's unfair claims settlement practices regulations.

Don't let the clock work against you. Document every interaction — dates, times, who you spoke with, what was said. That paper trail matters.

4. They're Denying Damage That Should Be Covered

You know the damage is from the storm. Your neighbors all have the same damage. Your contractor confirmed it. But your insurance company says it's "pre-existing." Or "wear and tear." Or "cosmetic."

This is one of the most frustrating tactics in the playbook, and it's how a lot of legitimate claims get partially or fully denied.

Common versions of this:

• "Pre-existing damage." They'll claim the damage was there before the loss event. Sometimes they're right — but often, they're using it as a blanket excuse to exclude damage they don't want to pay for.
• "Cosmetic only." Particularly common with hail damage to siding and roofing. They'll acknowledge the dents are there but say they don't affect functionality. Meanwhile, those dents compromise the integrity of the material and reduce the lifespan of your roof or siding.
• "Not consistent with the reported cause of loss." This is the catch-all denial. It sounds technical and authoritative. But it often comes without a detailed engineering report or any real evidence to back it up.
• Cherry-picking what to cover. They'll pay for some of the damage but exclude items that are clearly related. A storm damages your roof, and water gets inside — but they only want to pay for the roof, not the interior water damage. That's not how it works.

Here's the thing: you're not an insurance adjuster. You're not supposed to be. But you are allowed to get a second opinion. You are allowed to hire your own expert. And you are allowed to challenge their findings.

Under Rule 3901-1-54, insurers in Ohio can't deny claims without conducting a reasonable investigation. A drive-by inspection and a form letter don't cut it.

5. They're Pressuring You to Settle Fast

This one catches a lot of people off guard, because it feels like the insurance company is being helpful.

"We want to get this resolved for you quickly." "If you sign today, we can have a check to you by Friday." "This offer is only good for 30 days."

Sounds great, right? Except that quick settlement usually means their number, on their timeline, before you've had a chance to fully understand the scope of your damage.

Why rushing is dangerous:

• Hidden damage hasn't been discovered yet. Water damage behind walls, structural issues, mold — these things take time to reveal themselves. If you settle before a thorough inspection, you're on the hook for anything found later.
• You haven't gotten independent estimates. Their number is just that — their number. You need your own contractor estimates to know whether it's fair.
• You may be signing away your rights. Some settlement agreements include language that prevents you from reopening the claim. Read every document carefully before you sign.
• The "advance" trap. They'll offer a partial payment as an "advance" or "good faith" gesture, and then use it as leverage later. "We already paid you $5,000" — as if that covers the $25,000 in actual damage.

There's no rule that says you have to accept their first offer. Or their second. You're allowed to negotiate. You're allowed to bring in your own professionals. And in Ohio, you're allowed to hire a public adjuster to represent your interests — not the insurance company's.

What You Can Do About It

If any of this sounds familiar, you're not stuck. You have options.

1. Document everything. Every phone call, every email, every letter. Keep copies of all estimates, photos, and reports. If it's not in writing, it didn't happen.

2. Get independent estimates. Don't rely solely on the insurance company's numbers. Get estimates from licensed contractors in your area who can speak to the actual cost of repairs.

3. Know your policy. Your insurance policy is a contract. Read it. Understand what's covered, what your deductible is, and what your rights are under the policy and under Ohio law.

4. Hire a public adjuster. This is what I do. A public adjuster works for you — not the insurance company. We review your policy, document your damage, prepare our own estimate, and negotiate with the insurance company on your behalf. We fight for the settlement you're actually owed.

Most people don't realize that public adjusters exist, or that Ohio law gives you the right to hire one at any point during the claims process. You don't have to go through this alone.

The Bottom Line

Insurance companies aren't charities. They have shareholders, budgets, and adjusters with quotas. That doesn't make them evil — but it does mean their interests aren't always aligned with yours.

An underpaid insurance claim isn't just an inconvenience. It's money out of your pocket for repairs your policy should be covering. It's stress you shouldn't have to carry. And it's something you can fight back against.

If you think your claim has been underpaid, delayed, or unfairly denied, reach out for a free consultation. I'll review your claim, tell you where you stand, and if there's money being left on the table, I'll help you go get it.

No pressure. No obligation. Just a straight answer from someone who's been doing this for over 15 years.

Ryan Keathley is a licensed Ohio Public Adjuster (#1367111) and founder of Keathley Claims Consultants. With over 15 years of experience in the insurance industry, Ryan advocates for policyholders across Ohio, helping homeowners and business owners secure the full settlements they're entitled to under their insurance policies.