Disputing a Low Insurance Settlement Offer: A Do-It-Yourself Guide

Receiving a low insurance settlement offer can be a frustrating and confusing experience. It’s a moment when you need help and guidance the most. The good news is that you have the right to dispute the offer, and with a bit of effort and organization, you can build a stronger case for yourself.

Q. I've received a settlement offer that seems too low to cover my damages. What should I do first?

A. The most important thing to remember is not to panic. Receiving a low offer is common, and it's a situation you can address. First, think twice before accepting or depositing the check. Accepting payment can be seen as an agreement to the settlement in full, and you may lose your right to pursue more. Instead, take a deep breath and calmly review their offer. Compare their itemized list of damages and costs against your own. This will help you identify exactly where the discrepancies lie.

Q. Why would my insurance company offer a low settlement?

A. There are many reasons why an offer might be lower than expected. Sometimes it's a simple clerical mistake, but often it's due to the way your insurance company evaluates your loss. They may be using a different pricing system, overlooking certain damages, or interpreting your policy in a way that limits their payout. Their primary goal is to settle your claim quickly and for the lowest possible amount. Understanding their perspective is the first step in building your own case.

Q. How do I build a case for a fair settlement on my own?

A. Your goal is to provide a complete and convincing picture of your loss. You'll need to gather a detailed set of documents that clearly outlines the true cost of your repairs and replacement.

• Document Everything: Take high-quality photos and videos of all the damages, from different angles and distances.

• Get Independent Estimates: Find a reputable contractor to provide a detailed, itemized estimates for the repairs. Make sure the estimate accounts for all the damage you've documented, including "hidden" damages.

• Compile a List of Losses: If you have damaged personal property, create an itemized list with descriptions and estimated replacement values.

• Review Your Policy: Read your policy carefully. Understand what is covered and what is not. This will help you effectively counter any arguments the insurance company makes about coverage limitations.

• Understand Depreciation: Pay close attention to how the insurance company is handling depreciation. If they are deducting an amount for the age of your items, make sure you understand the difference between actual cash value and replacement cost and that you are receiving what your policy allows.

Q. How should I handle communication with the insurance company?

A. Always maintain a calm and professional demeanor. It is a good practice to handle all communication in writing whenever possible. If you have a phone call with your adjuster, take meticulous notes and then follow up with an email memorialising the conversation. This creates a clear record of all agreements and discussions, helping to prevent misunderstandings and ensuring transparency.

Q. How do I formally dispute the offer with my insurance company?

A. After you've gathered your evidence, your next step is to formally communicate with your insurance company in writing. Draft a detailed letter that clearly explains why you believe their offer is insufficient. Be sure to include your own supporting documents, such as the contractor estimates, photos, and your personal property list. Citing specific sections of your policy that you believe support your claim can be very powerful. Sending this letter with a tracking number increases urgency and provides proof of delivery.

Q. What if the insurance company still denies my dispute?

A. This is not the end of the road. Your policy will likely have options for further dispute, such as "appraisal," which is a binding process to determine the amount of the loss. You can also file a formal complaint with your state's Department of Insurance. They can investigate your case and ensure the insurance company is complying with state laws and regulations.

Q. Are there other resources for policyholders who want to advocate for themselves?

A. Yes, you are not alone in this journey. We highly recommend you look to the American Policyholders Association (APA). The APA is a non-profit organization dedicated to advocating for your rights and promoting integrity in the insurance industry. They provide a wealth of educational resources and support to help you understand your insurance policy and the claims process. They are a valuable resource for any policyholder seeking to be a strong advocate for their own claim.

If, after all this work, you're still not getting the fair resolution you deserve, or if the process feels too overwhelming, we're here to help. At Rome Public Adjusting, we provide DIY assistance as well as expert advocacy for policyholders just like you. If you have questions or need a compassionate guide to navigate the rest of your claim, please don't hesitate to reach out to us.

Lord have mercy