The Challenge:
A landlord client had a leaking shower in one of their rental properties. The loss adjuster assessed the damage and offered a $5,000 settlement, classifying the entire claim as hidden gradual damage — a policy extension with a defined cap. Left unchallenged, this would have left our client significantly out of pocket with a property still unfit to rent.
Our Approach:
We disagreed with the loss adjuster's blanket assessment and pushed back hard. Over the following month, we worked through the claim piece by piece, arguing that the damage needed to be assessed on its own merits in each area of the property. We successfully established that while the adjoining kitchen damage did qualify as gradual damage — attracting the $5,000 policy maximum — the shower itself was a separate matter entirely. The failure was accidental and unforeseen, meaning the bathroom was entitled to full replacement cover.
With that conceded, our focus shifted to how the replacement should be carried out. The loss adjuster was insisting on a like-for-like replacement, which would have taken considerably longer and left the property vacant throughout. We argued that a new replacement shower was not only a more practical solution, but a cheaper one — and that any extended loss of rent caused by the slower repair process should also form part of the settlement.
The insurer issued an interim payment of approximately $10,000 while negotiations continued.
The Outcome:
A month later, our client received a further $10,000 settlement — including a loss of rent component that reflected the extended vacancy the loss adjuster's preferred approach would have caused. Total settlement: approximately $20,000.
The irony? Had the insurer simply accepted the straightforward replacement from the outset, the total cost would have been around $15,000. Their decision to fight the claim cost them an extra $5,000.
The Takeaway:
Insurance claims are rarely straightforward, and loss adjusters don't always get it right. Knowing how to separate the issues, understand the policy, and negotiate each element individually can make an enormous difference to the outcome. We kept pushing until our client received every dollar they were entitled to — and then some.
