What to Do When You Disagree with Your Insurance Estimate: A Step-by-Step Guide

Understanding Your Rights in Insurance Disputes

When you receive an insurance estimate that seems too low, it’s important to know you have options. Insurance companies often provide initial estimates that may not fully cover the cost of repairs or replacements. Here’s what you can do if you find yourself in this situation:

Steps to Take When Disputing an Insurance Estimate

Review the estimate thoroughly
Carefully examine every line item in the estimate. Look for any missing damages or undervalued items.

Gather supporting evidence
Collect photos, videos, and independent repair estimates to support your case.

Communicate with your insurance adjuster
Explain your concerns and provide evidence to support your position. Sometimes, a simple conversation can resolve discrepancies.

Request a re-inspection
If the adjuster missed damages, ask for a second inspection to reassess the claim.

Consider hiring a public adjuster
These professionals can advocate on your behalf and may help secure a fairer settlement.

The Appraisal Process: A Formal Dispute Resolution Method

If you’re unable to reach an agreement with your insurance company, you may invoke the appraisal clause in your policy. Here’s how it typically works:

You and the insurance company each hire an independent appraiser.
These appraisers assess the damage and try to agree on a settlement amount.
If they can’t agree, a third independent appraiser (often called an umpire) is brought in to make the final decision.
The cost of the umpire is usually split between you and the insurance company.

This appraisal process is binding and can be an effective way to resolve disputes without going to court.

Additional Options for Resolving Insurance Disputes

• Mediation: A neutral third party helps facilitate a discussion between you and the insurance company.
• Arbitration: Similar to a court proceeding, but less formal and typically faster.
• State insurance department: File a complaint with your state’s insurance regulator if you believe the company isn’t treating you fairly.
• Legal action: As a last resort, you may consider consulting with an attorney specializing in insurance law.

Tips for a Successful Insurance Dispute

• Document everything: Keep detailed records of all communications with your insurance company.
• Be persistent but professional: Stand your ground, but maintain a courteous demeanor.
• Understand your policy: Familiarize yourself with your coverage limits and exclusions.
• Don’t rush to settle: Take the time to ensure you’re getting a fair deal.