Avoid This Simple Mistake to Maximize Your Insurance Payout After a Disaster!

Whether it’s a fire, water damage, burglary, or flood, obtaining compensation after a disaster is generally a challenging process. From ticking boxes in contract clauses to providing necessary documentation and enduring potentially endless processing times, policyholders often find themselves overwhelmed. Insurance companies scrutinize every detail. Missing documents, vague statements, or disputed estimates can complicate matters significantly. The result: denied claims, prolonged processes, and, for some, compensation far below expectations. So, what can be done to secure fair compensation in the event of a disaster?

The specialized magazine 60 Millions of Consumers explored this issue in its latest February issue (No. 610), with assistance from the National Union of Family Associations (Unaf) and the consulting firm Facts & Figures. Their investigation highlights some “disturbing” practices by insurance companies. One such practice involves focusing on a particular detail in policyholder declarations: the application of the proportional rule. If you’re unfamiliar with this term, it’s likely because insurers prefer you not to be aware of it.

In essence, the proportional rule in insurance means that if a policyholder has underestimated the value of their assets or provided inaccurate information unknowingly when signing up for their policy, they will receive less compensation than expected. This often applies to the number and size of rooms reported in a home. Few people know that if a room exceeds a certain size, it counts as two rooms. “For instance, a 60 m² living room-dining room combo might count as two main rooms,” one can read on the Crédit Agricole website, among others.

Typically, a main room must be larger than 9 m² but smaller than 30, and sometimes up to 40 m². This detail is stated in the contracts. If there is a mistake or omission, policyholders are penalized. “Many claims handled under proportional rules end up reducing the compensation amounts by 10 to 15%,” pointed out Benoît Monterrat, president of the Federation of Insurance Experts (Fedexa), in 60 Millions of Consumers.

To avoid such issues, it’s best to check your insurance contract and the details you have declared. If in doubt, insurers are required by the Insurance Code (article L521-4) to offer “a contract that is consistent with the needs and requirements” of the policyholder. Don’t hesitate to provide them with precise characteristics of the home, including interior and exterior photos for a more accurate evaluation. Most importantly, it’s always possible to correct a mistake by updating your contract!