Resolving an Underpaid Claim

Discovering that your insurance claim was underpaid can be frustrating—especially when the payout doesn’t cover your full loss. Fortunately, there are steps you can take to dispute and resolve an underpaid claim to ensure you receive the compensation you deserve.

Review Your Policy and Claim Details

The first step is to carefully review your insurance policy. Check the coverage limits, exclusions, and deductibles to understand what you’re entitled to. Compare your policy terms with the insurer’s payment explanation to identify any discrepancies.

Next, gather your claim documentation—photos, receipts, repair estimates, and any communication with the insurance company. Having organized evidence strengthens your case when disputing the underpayment.

Contact Your Insurance Adjuster

If you believe the payment is incorrect, contact your insurance adjuster or claims representative. Ask for a detailed explanation of how they calculated the payout. Sometimes, underpayments occur due to clerical errors or miscommunication.

If the adjuster’s explanation doesn’t resolve the issue, request a reinspection of the property or a review of your claim. Providing additional proof, like a second repair estimate or expert report, can help justify a higher settlement.

File a Dispute or Appraisal

When informal discussions fail, you can formally dispute the claim. Most insurance policies allow you to invoke an appraisal clause, which involves hiring an independent appraiser to determine the true value of your loss. The insurer appoints its own appraiser, and if they disagree, an umpire makes the final decision. This process is often faster and less costly than filing a lawsuit.

Consider Legal Action

If the insurance company refuses to pay fairly, you may need to consult an attorney who specializes in insurance disputes. A lawyer can help determine whether your insurer acted in bad faith and pursue full compensation through legal channels.

Conclusion

Resolving an underpaid claim requires persistence and documentation. By reviewing your policy, communicating clearly, and knowing your rights, you can increase your chances of receiving the payment you’re entitled to.