Would an insurance adjuster trick you with a bank statement? Dealing with an insurance adjuster can make an insurance claim complex.
Adjusters are expected to decide whether claims are legitimate, but some rightfully fear the tactics they might employ, such as requests for sensitive information like bank statements.
In this article, we will explains why insurance adjusters need a bank statement, how you should protect your information, and whether or not adjusters can be deceptive.
ALSO READ – Small Business Insurance
Now, let’s get started.
Why Would An Insurance Adjuster Ask For A Bank Statement
An insurance adjuster would request a bank statement to ensure specific financial details of a claim.
Fraud Prevention: If an insurance company suspect fraud, they may request detailed financial information to ensure their claim is accurate.
Such cases are more common for large claims, generally for property, health, or business insurance.
Proof of Loss or Expense: The claimant can use a bank statement to show that money was paid for a covered expense and, therefore, payments were made to the person making the claim.
Confirming Lost Wages: Adjusters can also request bank statements when an insured person files a claim for lost income due to an accident to cross-check income levels or corroborate payroll information.
Although there are valid reasons for doing so, claimants should be careful and try to find out why certain financial records are required.
Is It Normal For Insurance Adjusters To Request Financial Documents
It is not uncommon for insurance adjusters to ask for documentation as support for a claim, though the type of documentation they request will depend on the type of claim being made.
Typically, the adjuster will ask the following:
Receipts and Invoices: For property damage or medical claims, adjusters always request a receipt or an invoice directly related to the loss.
Tax Returns or Pay Stubs: When lost wages are claimed, adjusters may request proof of income through tax returns or recent pay stubs.
Bank Statements (When Relevant): Some adjusters request bank statements to verify large purchases, unusual transactions, or payments for services that may relate to the claim—even if less commonly.
If you are unwilling to share financial information, you can discuss alternative documentation options or share only what is appropriate, such as redacting unrelated transactions.
ALSO READ – Limit Of FDIC Insurance
Can An Insurance Adjuster Use Your Bank Statement Against You
Most adjusters are ethical but work on the insurance company’s behalf, so their interests may sometimes align differently with what’s best for you. Potential issues with sharing a bank statement include:
Questioning Spending Patterns: If the claim is thought to have been filed in bad faith, adjusters can scrutinize you for how you spend the money.
For example, if you file a claim of severe financial hardship and your bank records turn up plenty of discretionary spending, they might think you are making it up.
Attempting to Limit Your Payout: Sometimes adjusters search for ways to cut back on a claim’s amount. One easy example is where they might establish that there were transactions that happened at some time that could be argued not to be related to the insured event.
Legal Or Fraud Investigations: If there’s something odd in your bank statements, they could refer it onward for further investigation.
Any little thing can mess up your claim and make you wait for your money.
Therefore, if you are trying to decide whether to provide financial documents to an insurance adjuster, it is imperative to consult with a lawyer or public adjuster.
How To Protect Your Privacy When Sharing Financial Information
If you need to share a bank statement, there are ways to protect your privacy:
Redact Non-Essential Information: If you have to give a bank statement, then you can blackout (redact) personal or unrelated transactions.
Share only what’s relevant to your claim.
Limit the Date Range: Information should be provided only for the period related to your claim.
If your claim is related to a single event, provide records from that period rather than from everything in your financial history.
Provide Alternative Proofs: Use other documents such as invoices, receipts, and third-party statements instead of bank statements.
However, this will often suffice to convince adjusters without explaining your financial footprint.
Seek Legal Guidance: If you are uncomfortable with the request, chat with an insurance or lawyer to determine how best to proceed.
They can help you understand your rights and negotiate if needed.
So, these steps can reduce the risk of oversharing and maintaining your financial privacy while filing claims.
ALSO READ – How Many Insurance Licenses Are There
What Should You Do If An Adjuster’s Request Seems Unethical
If you feel uncomfortable with an adjuster’s request, especially if it seems unnecessary or invasive, here are actions you can take:
Ask For Justification: Have the adjuster explain why they need the specific information and how it will be used to value your claim.
Consult A Public Adjuster: Public adjusters can provide a second opinion independent of insurance companies.
They may help you see if the requested documents are appropriate and reflect your interests.
File a Complaint: If you believe an adjuster or someone working for an adjuster is acting unethically, you may file a complaint with the insurance company or your state’s insurance regulator.
Most states have agencies concerned with consumer protection in insurance matters.
Seek Legal Counsel: Sometimes, you must involve an attorney if you perceive being manipulated or coerced by an adjuster.
A lawyer could defend your rights and ensure your claim is done correctly.
You safeguard your rights during claims by challenging anything unfamiliar or uncomfortable.
Do You Have To Provide A Bank Statement If An Adjuster Requests It
It is optional to provide a bank statement. However, You should know that refusing it can crimp the adjuster’s ability to conclude your claim accurately. Below are some important points we have put together for you to consider:
Policy Terms and Conditions: Check your insurance policy to determine what you must do. Some policies may include clauses requiring cooperation in providing evidence behind claims.
Alternative Documentation: The adjuster can tell you if you can get by with other documents.
For example, if they check income or expenses, tax returns, or receipts, they could fill in your complete bank statement without revealing it.
Risk of Denial: The claim may only be allowed if the requested information is provided. Payment may only be approved if an adjuster can confirm a claim.
You may have to balance protecting your privacy and cooperating with legitimate requests.
If you need to know what’s expected of you, take the time to find out.
ALSO READ – Cost Of House Insurance
Conclusion
In general, insurance adjusters are law-abiding people. Still, since we are human beings, we must act responsibly when sharing our personal financial information, like bank statements.
Knowing your rights, understanding why you may be asked to provide a document, and how to protect your privacy make for a smoother claims process.
It would be best if you remained proactive and vigilant, as it allows you to protect your interests while working with your insurance adjuster.