Finding out that your insurance claim has been denied or that the offered settlement seems too low can be frustrating, but there are a few general steps that can help you understand your options going forward.
Start by carefully reviewing the denial or settlement letter to understand the specific reasons given. Insurance companies are generally required to explain the basis for a denial or reduced payment, and that explanation is an important starting point.
Compare the stated reasons against your actual policy language, particularly the coverage provisions and any exclusions cited, to understand how the insurer arrived at its position.
If the disagreement is specifically about the dollar amount of a covered loss, rather than whether the loss is covered at all, the appraisal clause in your policy may offer a path forward, since it is generally available to either party in this type of dispute.
If the disagreement is more about whether coverage exists in the first place, or if you are unsure which type of disagreement you are facing, discussing the situation with your insurance company, agent, or an attorney can help clarify your options and the best path forward.
This article is general education about how the appraisal process commonly works. It is not legal advice, and specific procedures can vary by state and policy. If you have questions about your own claim, review your policy language and talk with your insurance company, agent, or an attorney familiar with your state’s laws.
Russ Lis is a working property insurance appraiser and umpire based in Minnesota, serving clients nationwide. Have a question about your own claim? Contact Appraisal Resolution.