Why Dispute an Insurance Claim?
There may come a time when you when you need to file a property damage claim with your insurance company, and you may not agree with how they handle it. Many homeowners wonder why dispute an insurance claim when their insurer has already made an offer. The reason is simple: you have the right to question the insurance company’s damage estimates, repair costs, or settlement amount if they don’t reflect the true value of your loss.
Claim disputes are common. If the insurance company refuses to make adjustments to the estimate, you have several dispute resolution options available.
Claim Dispute Resolution Methods
1. Appraisal
Most property insurance policies allow disputes over the amount or value of a loss to be resolved by requesting an appraisal.
Example of a policy’s appraisal language:
If you and we fail to agree on the actual cash value, amount of loss, or cost of repair or replacement, either can make a written demand for appraisal. Each will then select a competent, independent, appraiser and notify the other of the appraiser’s identity within 20 days of receipt of the written demand. The two appraisers will choose an umpire. If they cannot agree upon an umpire within 15 days, you or we may request that the choice be made by a judge of a district court of a judicial district where the loss occurred. The two appraisers will then set the amount of loss, stating separately the actual cash value and loss to each item.
Although this sounds complicated, don't be intimidated by the technical terms. An insurance appraisal can determine the damages and the value of the loss.
2. Mediation
Mediation is another effective way to resolve an insurance dispute. Mediations have become one of the most common methods because it helps settle the dispute faster compared to a lawsuit. Mediations can be held privately, voluntarily, or court ordered.
3. Litigation
If the dispute is due to a denial or the policyholder believes they are being mistreated, the claim can be brought before the court system. This requires filing a lawsuit, conducting “discovery”, and presenting evidence or witnesses to a judge and jury. Then, the judge or the jury will render a verdict.
Filing a lawsuit provides significant leverage to the policyholders' negotiation position, and most cases are settled before going to trial. It is best to hire an experienced insurance dispute attorney, on a contingency fee basis.
Why This Matters for Homeowners
Knowing why to dispute an insurance claim, and how to do it, gives you the power to protect your rights and secure the coverage you’ve paid for. Whether you choose appraisal, mediation, or litigation, each option exists to help level the playing field between you and your insurer.
If you believe your property insurance claim was unfairly denied, delayed, or underpaid, contact The Lane Law Firm today to learn more about your options for resolving an insurance claim dispute.
