You’ve done everything right. Filed your claim. Sent the documents. Cooperated fully. Then the insurance company responds with an offer that barely covers your losses. It feels like a slap in the face. Unfortunately, this happens more often than it should.
If you’ve received a low settlement offer, don’t panic and don’t accept it right away. You have options, and the steps you take next can shape the outcome.
Do Not Accept the Offer Right Away
This is critical. Once you accept a settlement and sign a release, your claim is usually closed for good. Even if the amount is unfair, you won’t be able to revisit it. That’s why it’s important to pause before agreeing out of frustration or pressure.
Ask for a Written Explanation
South Dakota insurance companies are expected to act in good faith. If the amount they offer is far below your actual losses, they should explain why. Request a written breakdown of how they reached that number. Are they undervaluing your property? Are they ignoring future medical expenses? Their response may expose flaws in how they calculated your claim.
Review Your Policy Terms
Every policy is different. Go over yours carefully. Look at what is covered, what is excluded, and what limits or deductibles apply. Sometimes insurance companies count on you not fully understanding your own coverage. Knowing your rights under the policy is a powerful first step.
Get Independent Estimates
If the claim is related to property damage, have a contractor or other professional assess the damage and provide their own estimate. For injury claims, ask your medical provider to provide a detailed breakdown of expected future costs. Independent evaluations can help support your claim and counter the insurer’s numbers.
Keep Thorough Documentation
Save every document and record tied to your claim. That includes emails, letters, repair bills, photos, medical records, wage loss documentation, and notes from conversations with the adjuster. If your case becomes a dispute, this paper trail can make all the difference.
Watch for Pressure Tactics
Some insurance adjusters will try to rush you into a decision. They may suggest it is your only offer or imply that fighting back will delay your claim indefinitely. In reality, these are often signs that they know the claim is worth more. Do not be intimidated. Take your time and act based on facts, not fear.
Speak with an Experienced Insurance Attorney
If you feel stuck or are making little progress with negotiations, consider consulting an attorney who has experience in handling insurance disputes. At Abourezk Law Firm, we understand how insurance companies work and what it takes to challenge an unfair offer. A lawyer can step in, evaluate the real value of your claim, and negotiate directly with the insurance company on your behalf.
If necessary, legal action may also be an option. Insurers that act in bad faith can be held accountable. Sometimes, simply hiring an attorney demonstrates that you are serious and unwilling to settle for less.
You Do Not Have To Accept Less Than What You Are Owed. Contact Us Today
A lowball settlement offer is not the end of your claim. It is just a tactic. With the right guidance and a clear understanding of your policy and rights, you can push back. You deserve the full amount your coverage was meant to provide.
At Abourezk Law Firm, we fight for South Dakotans who have been treated unfairly by insurance companies. If you have received a low offer or your claim has been denied, please contact our office today. We can help you move forward and fight for what is rightfully yours.