Payment delays have become so common that most homeowners and business owners start to see them as normal. They wait a week, a month, six months, and in return — silence or new excuses from the insurance adjuster (“we are following the verification procedure”).
But let’s be honest: these delays are not accidental. They are often intentional because they bring financial benefit to insurance companies. While the policyholder waits for funds for property damage restoration, the company uses that money.
Of course, such behavior is unacceptable. Below, you will learn about the real reasons for delays, how they reduce the payout, and the role of public insurance adjusters in such cases.
How the Insurance Industry Has Normalized Delays
Do you think a delay is a bureaucratic mistake, an isolated incident, or an unfortunate coincidence? No, no, and no. At the very least because delays are built into the claim-handling system itself. Insurance companies profit by holding funds in their accounts as long as possible (this is called “float”). The longer the money is not paid out to the policyholder, the more interest they earn on investments.
In addition, time works against the policyholder psychologically. The longer the delay, the more discouraged, desperate, and compliant the insured becomes.
The industry often hides behind terms like “investigation,” “audit,” “internal review,” or “processing backlog” to justify inaction. But when a residential or commercial insurance claim sits on an insurance adjuster’s desk for weeks without movement — this is no longer procedure, but a calculated tactic.
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Why Delays Reduce Payouts (The Economics Behind It)
The purpose of the delay itself is to push the policyholder into accepting a lower compensation amount. The sequence is simple and harsh:
- Financial pressure. Expenses for temporary housing (loss of use coverage) or business downtime slowly but steadily drain the policyholder’s savings.
- Loss of contractors. Contractors will not wait forever. Estimates expire, material prices increase, and water, wind, and fire restoration contractors move on to other projects.
- Leverage. The insurance company forces a choice: accept the lowball offer now or wait an unknown amount of time for a fair settlement.
In commercial claims, the situation becomes even more complicated. Every day of downtime creates new losses on a massive scale. So the delay strategy kills the business long before the insurance check arrives.
The Emotional Toll on Policyholders
Behind every claim number stand real people. We saw families who were unable to return home for months because the fire and smoke damage restoration processes seemed to have come to a standstill. We also saw small business owners who were unable to reopen because their business interruption insurance claims were deliberately ignored by insurance companies.
But the worst part is the feeling of abandonment. The policyholder calls, sends emails, sends messages to their adjuster claim — and receives nothing in return. And this “nothing” completely destroys trust, leaving them feeling powerless.
Silence is not a claims-handling strategy. It is emotional manipulation designed to wear the policyholder down.
Delay Tactics Insurers Commonly Use
To effectively fight delays, you must be able to recognize them. An insurance claim adjuster will rarely say directly, “We are stalling.” Instead, the policyholder will see certain behavioral patterns:
- Ignoring communication. No responses to calls or emails for weeks.
- “Lost” documents. The insured is asked to resend the same papers repeatedly, with the company claiming they were never received.
- Adjuster reassignment. In the middle of the process, the claim is transferred to a new adjuster, who must start reviewing the case from scratch.
- Endless checks. Unexpected re-inspections or requests for unnecessary documents — all of which slow progress. Often, these procedures and papers are not even required.
- Suspiciously slow case progress. The insurance adjuster claims the file is “under internal review,” yet the review lasts suspiciously long with no signs of progress or explanation.
- Claiming the file is “awaiting manager approval.” A classic excuse. The claims examiner says they support the payout, but the file allegedly sits on management’s desk for weeks without a signature.
If even one of these signs appears in a claim, it is not a coincidence. It is a signal that the policyholder needs an independent professional negotiator who knows how to break through bureaucratic walls.
Why This Behavior Should NOT Be Accepted by Insurance Professionals
Delaying payments violates the spirit of good faith claims handling. It contradicts the industry ethics of the insurance sector and the guidelines of the Department of Insurance.
Insurance companies count on the fact that a homeowner or business owner will be unaware of their rights or too exhausted to fight. This is exactly why companies like On-Site Adjusting exist.
Every member of our team has a moral and professional obligation to hold insurers accountable. Therefore, we will not allow you to be taken advantage of in any way.
How Public Adjusters Help Break the Delay Cycle
When an insurance company begins playing the silence game, home and business public adjusters become the force that makes the system move. They do not politely ask — they firmly demand that obligations be fulfilled.
The process can be accelerated in several (completely legal!) ways:
- Forced communication. We compel timely responses, documenting every missed deadline. If necessary, we immediately and formally challenge delay tactics.
- Proper escalation. If a claims adjuster ignores you, we go higher — to supervisors, managers, and, if needed, we file complaints with regulatory bodies.
- Perfect documentation. We prepare a complete and thorough document package (including total loss inventory). As a result, the insurance company has no grounds to request additional information.
- Excellent knowledge of legislation. We operate with specific terms and rules (Fair Claims Settlement Practices Regulations), pointing out violations of the guidelines.
Our team works quickly and firmly. We track every call and message, challenging any attempt to stall. Often, the intervention of the best public adjuster moves the case from dead center within just a few days.
Why Hiring a Public Adjuster Early Prevents Delays
What is the best way to avoid delays? To prevent them from the very beginning. Early involvement of an independent public adjuster ensures proper documentation of the claim file from day one.
Ultimately, insurers respond much faster when dealing with professionals such as On-Site Adjusting. Why? Because they know that public adjusters work closely with attorneys who will not hesitate to file a lawsuit against an insurance company for bad faith practices (intentional delays in the process or denial of a valid claim). Knowing that legal escalation is only one step away, insurers are far more likely to act fairly. This not only speeds up the payout but also relieves the overwhelming psychological burden of constantly “fighting” for the money.
Important note! In California and Wisconsin, we are experts in adjusting only. And in Illinois, in addition to that, we also provide restoration services.
Final Thoughts — The Industry Must Do Better
Insurance delays cause real damage:
- emotional pressure;
- financial losses (due to rising prices and outdated estimates);
- structural damage (deterioration of the physical condition of the property, such as mold, or the collapse of business structure).
None of this is acceptable. Policyholders deserve timely responses, a transparent process, and fair payment. And if an insurance company does not want to play fair, public adjusters will make them do so.
Is an insurance adjuster ignoring you? Do you feel that your insurance claim is being intentionally delayed? Call the On-Site Adjusting team at (866) 861-4992 or (866) 933-0404, or fill out the contact form.
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