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Most people do not understand the concept of indemnification. The concept on the surface is an easy concept. It is simply to make whole or put in a pre loss condition. This is the entire basis of the insurance contract. The policy holder promises to pay their premium each month to the insurance carrier with a written promise in the form of a policy to protect them and put them in pre loss condition in the event that they suffer a direct physical loss from a covered peril such as fire, hail, wind, ect.

It seem rather strait forward, but many insurers do not train their adjusters to indemnify or make a policy holder whole from their loss. This mean financially whole. You will get responses that we don’t owe for that because they only pay for a direct physical loss. Loss is the key word your financial loss is the loss.

General Insurance Definitions Provided by The American Institute for Chartered Property Casualty Underwriters/Insurance institute of America

AICPCU– Poperty Loss Adjusting 3rd Edition. Page 1.4
An insurance policy is a contract of indemnity. It is designed to restore an insured who has suffered a loss to the same financial condition as before the loss.

Contract of indemnity- A contract under which the insured is entitled to payment only if he or she has suffered a covered loss and then only up to the extent of the financial loss actually suffered.

These definitions are the entire premise of the insurance policy. So when they insurance company says they are not going to pay for your roof to look as it did before and you end up with a patch up roof that looks as bad as they day it was damaged. Your insurer failed to comply with their end of the contract. When you go to sell your home your home will be worth much less because your roof will need to be replaced for the new owner who will not accept your patched up roof.

Understanding the priciples of indemnification is essential to the claims process. This is the one of the primary reasons that 99% of insurance claims are underpaid. Protect yourself and your financial future.