Quick summary: If an insurance company refuses to increase what it calls its final offer, you have several options: accept the offer, negotiate further, invoke a policy appraisal or dispute-resolution clause, file a complaint with the Tennessee Department of Commerce & Insurance (TDCI), or sue for breach of contract and, where appropriate, pursue extra-contractual remedies. Act promptly, document everything, and get an attorney’s help if the money involved justifies it.

Detailed answer — what to do and what to expect under Tennessee law

1. Read your policy first

Your insurance contract controls what remedies are available. Look for clauses about appraisal, mediation, arbitration, deadlines for suit, and requirements for proofs of loss. If the policy has an appraisal clause, that is often the fastest way to resolve a disagreement over the amount of loss.

2. Confirm whether the insurer’s offer is truly “final”

An insurer may label an offer as “final” but still be open to negotiation if new evidence or documentation arrives. Submit any missing estimates, invoices, photos, or contractor bids that support a higher value. Send a clear written demand that explains why the offer is inadequate and attach supporting documentation.

3. Use contract remedies in the policy: appraisal, mediation, or arbitration

If your policy contains an appraisal clause, you and the insurer each select an appraiser and, if needed, an umpire decides. Appraisal focuses on the amount of loss, not coverage defenses. If successful, appraisal can produce an enforceable award that often leads the insurer to pay more. If your policy requires mediation or arbitration, follow those steps before filing suit unless the insurer agrees otherwise.

4. File an administrative complaint with Tennessee’s insurance regulator

If you believe the insurer acted unfairly (delayed unreasonably, refused to investigate, misrepresented policy coverage, or otherwise violated claims-handling rules), you can file a complaint with the Tennessee Department of Commerce & Insurance (TDCI). The regulator can investigate and may sanction the company or press it to negotiate. See how to file at the TDCI consumer complaints page: https://www.tn.gov/commerce/insurance/consumer-resources/file-a-complaint.html.

5. Consider a lawsuit for breach of contract

If negotiations, appraisal, or administrative complaints don’t work, you can sue the insurer for breach of contract to recover the full policy benefits. In a breach action you can seek recovery of the policy amount, interest, and court costs/attorney fees when a statute or contract permits. Make sure you understand and comply with any suit-notice requirements and the applicable statute of limitations for contract claims.

6. Extra-contractual claims (bad faith / unfair practices)

Tennessee law prohibits unfair or deceptive claims-handling practices and provides regulatory remedies. In some cases, courts recognize claims beyond simple breach of contract — for example, claims based on bad faith handling or statutory unfair practices — that may allow recovery of extra-contractual damages, punitive damages, or attorney fees. Whether an extra-contractual claim is available depends on the insurer’s conduct, the facts, and case law. You can report suspected unfair practices to TDCI here: TDCI file-a-complaint.

7. Evidence and timing

Preserve all communications with the insurer, photographs, repair estimates, receipts, inspection reports, and any independent appraisals. Act quickly. Insurance policies and Tennessee law impose deadlines for proofs of loss and for filing suit. Missing a deadline can forfeit your rights.

8. When to hire an attorney

Talk to an attorney if:

• The insurer’s offer is materially lower than your documented loss;
• The insurer denies coverage or raises complex coverage defenses;
• You suspect the insurer engaged in unfair or deceptive practices; or
• The cost of litigation is justified by the potential recovery.

Statutes and regulator resources (Tennessee)

Tennessee regulates insurance and claims practices through state law and administrative rules in Title 56 of the Tennessee Code and via the Tennessee Department of Commerce & Insurance. For consumer help and to file complaints, use the TDCI consumer page: https://www.tn.gov/commerce/insurance/consumer-resources/file-a-complaint.html. For the official Tennessee Code, search Title 56 (Insurance) at the Tennessee General Assembly site: https://www.capitol.tn.gov/. For general court information and opinions that interpret insurance law, see the Tennessee Courts website: https://www.tncourts.gov/.

Helpful Hints

• Document everything: save emails, letters, photos, estimates, and notes from phone calls (who you spoke with, date/time, what was said).
• Respond in writing to any insurer request and keep copies. Written records help both regulators and courts.
• Check your policy for appraisal, mediation, or arbitration clauses before filing suit.
• Use independent contractors or public adjusters for a second repair estimate if the insurer’s estimate seems low.
• File a complaint with TDCI if you suspect unfair claims handling: TDCI consumer complaints.
• Don’t sign a full release or final settlement until you are sure the payment and release language reflect what you wanted to accept.
• Act promptly — there are policy deadlines and state statutes of limitations that can bar claims.
• Even if the insurer labels an offer “final,” new evidence or an appraisal award can change the outcome.