What to do when an insurance company refuses to increase its final offer

Short answer: If the insurer refuses to raise a final offer, you can accept the offer, reject it and negotiate further, use dispute-resolution tools in your policy (like appraisal or mediation), file a complaint with the Vermont Department of Financial Regulation (DFR), or hire an attorney and sue. Which option makes sense depends on your policy terms, the size and nature of the loss, and time limits that apply.

Detailed answer — step-by-step options under Vermont law and practical next steps

Insurance companies must follow the contract (your policy) and state law. If an insurer calls an offer “final” but you believe it is too low, take these steps in order:

1. Check your insurance policy (contract)

   Read the policy carefully. Look for clauses about dispute resolution: appraisal (common in property claims), arbitration, mediation, or agreed procedures for claim valuation. If the policy includes an appraisal clause, invoking appraisal may be faster and cheaper than a lawsuit for property damage. Follow the exact steps and timelines the policy requires.

2. Document your position and send a written demand

   Put your disagreement in writing. A clear demand letter that summarizes your evidence—photos, repair estimates, medical bills, witness statements, expert reports—gives the insurer a record of why you think the offer is too low and can be useful later if you file a complaint or lawsuit.

3. Ask for alternative dispute resolution

   If your policy or the insurer offers mediation or appraisal, you can use those tools. Appraisal is common for disputes about the amount of property damage; mediation works where both sides may settle if a neutral third party assists. These options are often faster and less expensive than a trial.

4. File a complaint with Vermont’s insurance regulator

   If you suspect unfair practices—like unreasonable delay, failure to investigate, or an unexplained denial—you can file a complaint with the Vermont Department of Financial Regulation (DFR). The DFR cannot require a company to pay every claim, but it can investigate unfair settlement practices and sometimes help resolve disputes. See Vermont DFR Insurance: https://dfr.vermont.gov/insurance and the DFR consumer pages for complaint instructions.

5. Consider small claims court or civil litigation

   If the amount in dispute fits small claims court or your damages justify a full lawsuit, you can file in Vermont civil court to recover what you believe you are owed. Litigation carries costs, takes time, and requires proof. Before suing, calculate net recovery after legal fees and court costs, and check any deadlines (statute of limitations) that may apply.

6. Hire an attorney when appropriate

   Talk to a Vermont attorney when the insurer’s refusal affects significant money, you face serious injury or complex liability issues, or you suspect bad faith. An attorney can evaluate whether you have a claim beyond contract breach—for example, a claim for unfair settlement practices—and can handle litigation, settlement negotiations, and, when needed, a demand for policy limits.

What “bad faith” or unfair handling looks like

Insurers must investigate and handle claims reasonably. Patterns that may signal unfair treatment include:

• Failure to investigate basic facts without a reasonable reason
• Refusing to provide a reasonable explanation for a denial or low valuation
• Unreasonable delays in payment or repeated requests for the same documents

If you believe the insurer acted unreasonably, document specific communications and actions and discuss them with an attorney or the DFR.

Practical considerations

• Weigh cost vs. benefit. Small differences may not justify litigation expense.
• Preserve evidence: keep photos, receipts, medical records, repair estimates, and all communications (emails, letters, notes of phone calls).
• Keep deadlines in mind. Policies, statutes, and court rules can set short windows for taking action.
• Be clear, professional, and organized in communications; polite but firm writing helps negotiations and formal complaints.

Where to get help in Vermont

• Vermont Department of Financial Regulation (insurance consumer help): https://dfr.vermont.gov/insurance
• Vermont Judiciary (filing a lawsuit / small claims information): https://www.vermontjudiciary.org/
• If you want legal representation, search for Vermont attorneys who handle insurance claims, personal injury, or property damage. Many offer a free initial consultation.

Helpful Hints

• Read your policy first. The contract often controls the available remedies.
• Send one clear written demand with all supporting documents before escalating.
• Invoke appraisal if your policy has it and the dispute is only about the amount of property damage.
• Use the DFR complaint process if you believe the insurer broke rules or acted unfairly.
• Get an attorney consult if the claim involves significant money, serious injuries, or confusing legal questions.
• Don’t miss deadlines — check your policy and consult an attorney promptly.

Disclaimer: I am not a lawyer and this information is not legal advice. This article explains general options and practical steps under Vermont law. For advice about your specific situation, please consult a licensed Vermont attorney.