Insurance companies are businesses designed to manage risk and control costs. When a claim is filed, their adjusters are trained to identify every possible reason to reduce the payout. The result: policyholders routinely receive settlements that fall $10,000–$40,000 short of actual restoration costs. Understanding the tactics carriers use is the first step to recovering what you are owed.
Common Carrier Underpayment Tactics
Depreciation Overapplication
Depreciation Is Often Overapplied
Suppressed Labor and Material Rates
Get Three Contractor Estimates
Code Upgrade Omissions
The 10% Rule Matters
Concealed Damage Exclusions
How to Counter Underpayment
The First Offer Is Rarely Fair
Key Takeaways
Carriers use systematic tactics — depreciation overapplication, suppressed rates, code omissions, and concealed damage exclusions — to minimize payouts.
Three independent contractor estimates provide powerful market-rate evidence against carrier underpricing.
The 10% damage rule triggers code upgrade coverage that carriers routinely omit.
Concealed damage discovered after initial inspection is typically still covered under most policies.
Hiring a public adjuster who knows carrier tactics can recover 2–4x more than independent claims.
Drew — Licensed Public Adjuster
Reviewed: October 25, 2026Licensed in Florida and Texas, Drew has helped over 1,500 homeowners recover denied and underpaid insurance claims.