What is an Insurance Claim Negotiation?
An insurance claim is a request made by a policyholder to their insurer for compensation to cover losses or damages. It can be negotiated, which is when an insurance adjuster assigned to the case and policyholder debate the claim to settle on the amount that should be paid out for it.
During the negotiation, parties will consider things such as the claim value, the coverage outlined in the policy, and more.
You might need to negotiate an insurance claim if you feel that you are not being fairly compensated for a loss or injury.
To find out how to navigate the insurance claim negotiation process, read the rest of this article.
Why Should You Negotiate an Insurance Claim?
There are various situations in which you might want to negotiate your insurance claim. These include the following:
- The insurer’s initial offer is too low. By not accepting it, you have the opportunity to get more money to cover your damages.
- There’s extra damage that isn’t being covered. Insurance claim payout estimates might neglect additional damage you’ve suffered, so negotiating with the insurance adjuster can help you achieve a higher payout.
- The policy language isn’t clear. It can sometimes happen that the insurance policy isn’t clear, which can cause you and the insurance company to interpret terms differently, resulting in lower payouts that don’t meet your expectations.
- The insurance company is delaying the payout. The insurer might delay paying you for the claim in the hope that you’ll stop trying and move on. By engaging in negotiation, this can help you achieve a favorable outcome.
How Should You Negotiate an Insurance Claim?
There are important things to consider when negotiating an insurance claim. These include the following.
Review Your Insurance Policy
You can’t enter into a negotiation with your insurer if you haven’t clarified all the terms in your policy, which govern your agreement. A legal review conducted by an experienced lawyer is essential as they will spot issues you might miss. They’ll ensure that the insurance policy is legally sound and that you have a valid case to pursue.
You don’t have to hire a lawyer from a traditional law firm for your legal review. ContractsCounsel, an online legal marketplace that connects you with lawyers vetted on the platform, makes the process easy and affordable. Simply post your request on the platform and you’ll receive multiple bids from lawyers. You can choose a lawyer to work with based on factors such as their level of experience, client reviews, fields of expertise, and more.
Gather Evidence
Before negotiating your insurance claim, you should prepare by collecting as much evidence as you can. This can involve screenshots of damage, estimates from contractors, invoices for repairs or other expenses, medical records, and proof of previous communication with the insurance company. By having evidence, you’ll prevent the insurer from trying to decrease your payout.
Be Professional
You should approach the negotiation in a professional, respectful way. This doesn't mean you shouldn’t be assertive.
For example, if the other party gives you a lowball offer, use the facts you’ve collected to state your case and show that it’s justified. Similarly, if they try to deflect your concern, request an escalation to a supervisor.
It’s common for insurance adjusters to try to delay the claims process so that you will accept a lower settlement, which can be highly frustrating.
Avoid Being Swayed by Pressure Tactics
Some insurance adjusters will try to create a sense of urgency so that you quickly accept the settlement. To do this, they might create fake deadlines. The best way to deal with this is to remain calm under pressure and not allow the insurance adjuster to get you to settle on an offer that doesn’t match your claim.
Do Your Research
Before you can negotiate for a settlement, you should do your research to find out what the average settlement amounts are for similar claims to yours. You can do this by searching for similar claims or cases online, considering how state laws affect them, and asking a lawyer for assistance.
This will give you a good idea of what you should fight for and ensure that what you’re asking is reasonable.
Do You Need a Lawyer for an Insurance Claim Negotiation?
It’s not always required to hire a lawyer when you’re negotiating an insurance claim. If you’ve tried to negotiate with an insurance adjuster and your efforts haven’t been successful, you should reach out to a lawyer for guidance.
Other times when you should consider hiring a lawyer include the following:
- Your claim is being denied and you don’t know what to do.
- Your claim is underpaid.
- You have a complex claim.
- The damage you’re experiencing is substantial.
- You don’t have the time to work on the claim.
- Your insurance company is avoiding your requests.
Here is how a lawyer can help you navigate the insurance claim negotiation process:
- They’ll thoroughly assess your claim value. Your lawyer will calculate your costs and future expenses, as well as non-financial damages, when presenting your case.
- They understand insurance company tactics. Since they have experience, your lawyer will know what to expect from the insurance adjuster and how best to negotiate with them. In turn, your lawyer is more likely to be taken seriously.
- They’ll interpret your insurance policy. Lawyers will check your policy for any limits, legal nuances, and red flags. They can also translate legal jargon to increase its clarity.
- They’ll help you avoid mistakes. Your lawyer will protect you from saying or doing anything that insurance adjusters can use against you.
- They’ll demand that the adjuster reconsiders your claim. Your lawyer will help you if your claim is denied or not fully paid out.
- They’ll justify non-financial damages. If you feel that the insurance adjuster isn’t considering non-financial damages you’re experiencing, your lawyer can help you to justify compensation for emotional distress and other damages.
- They’ll consider all deadlines and legal requirements. This will ensure you act in a timely, legal way.
- They’ll prepare you for litigation. If your case has to go to court, your lawyer will help you and represent you in litigation.
Where Can You Hire a Lawyer for an Insurance Claim Negotiation?
If you need legal assistance for an insurance claim negotiation, you should consult with a lawyer from ContractsCounsel. Choose the best lawyer for your requirements, based on factors such as their location, years of experience, client reviews, and more. Gain peace of mind that a legal professional will help you navigate the stressful insurance claim negotiation process and protect your rights.
