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Detailed answer — what to check and what to do next

1. Read your policy carefully

Your insurance policy controls what remedies are available. Look for these provisions:

• Coverage language and limits (what is covered and the maximum payable).
• Appraisal clause (commonly in property insurance): a procedure to resolve value disputes without suing.
• Arbitration or alternative dispute resolution clauses.
• Notice and proof-of-loss requirements and any deadlines for suit or demand.

If the policy contains an appraisal clause, using that process can be faster and cheaper than litigation for property damage disputes. If the policy requires arbitration, that may limit your right to take a jury trial unless the clause is unenforceable.

2. Confirm the insurer’s position in writing and preserve evidence

Ask the insurer to put its final offer and the reasons for that value in writing. Preserve all communication, estimates, photos, repair invoices, medical records (if personal injury), witness statements, and any expert reports. These materials are vital if you escalate.

3. Make a strong written demand

Before suing, send a clear written demand that summarizes the damage or injuries, the evidence supporting higher value, the policy provisions you rely on, and a deadline for response. A well-drafted demand sometimes prompts reconsideration.

4. Use policy dispute processes if available

If the policy has an appraisal clause (common in homeowner and commercial property policies), either party can invoke appraisal to resolve only the amount of loss. Appraisal is not a remedy for coverage denials. If the insurer refuses appraisal but the policy requires it, an insured may seek a court order to compel appraisal.

5. Consider mediation or private arbitration

Mediation is voluntary and often effective. Private arbitration is binding if both sides agree or if the policy requires it. Mediation can bridge the gap between the insurer’s final offer and what you seek.

6. File a complaint with the Virginia Bureau of Insurance (State Corporation Commission)

The Bureau of Insurance handles consumer complaints about insurer conduct, including allegations of unfair claim-handling practices. The Bureau can investigate and sometimes get the insurer to reconsider. For general information on Virginia insurance law and consumer assistance, see Virginia Code Title 38.2 (Insurance) and the State Corporation Commission, Bureau of Insurance consumer pages: Virginia Code — Title 38.2 (Insurance) and Virginia State Corporation Commission — Bureau of Insurance.

7. Evaluate litigation: breach of contract and extra‑contractual claims

If negotiation, appraisal, and administrative complaints fail, you may sue. Possible claims include:

• Breach of the insurance contract: if the insurer refuses to pay amounts the policy covers.
• Bad faith or unfair claim practices: Virginia law and regulations prohibit certain unfair practices by insurers; the Bureau enforces administrative rules, and courts may allow extra‑contractual recovery in limited circumstances.

Litigation can recover the contract amount and, in appropriate cases, interest, costs, and attorney’s fees. Whether you can recover extra damages beyond the contract depends on the facts and applicable law. Consult a Virginia attorney early to evaluate the chances and costs of filing suit.

8. Watch the time limits

Virginia has firm deadlines for lawsuits and policy notice requirements. Missing a notice or suit deadline can bar your claim. Even if you plan to negotiate, begin gathering evidence and consult counsel early so you don’t lose rights due to a missed deadline.

9. Cost-benefit analysis

Compare the insurer’s offer to the likely recovery after fees and time. Small-value disputes sometimes cost more to litigate than the potential gain. For significant claims, paying an attorney for a demand letter, appraisal, mediation, or suit may be worth it.

How the Virginia Bureau of Insurance can help

The Bureau accepts consumer complaints, reviews claim handling, and enforces Virginia’s insurance laws and regulations. Filing a complaint does not substitute for a lawsuit, but it can prompt an investigation and sometimes get the insurer to negotiate.

Start here for consumer help: https://scc.virginia.gov/boi

When to talk to an attorney

Contact a Virginia attorney if any of these apply:

• The insurer’s refusal involves significant money or complex coverage issues.
• The insurer denies coverage entirely but you believe the policy covers the loss.
• You suspect the insurer engaged in bad faith or unfair practices.
• Deadlines to sue or to provide proof-of-loss are approaching.

An attorney can evaluate your contract, advise about appraisal or arbitration, file suit if needed, and help calculate whether litigation costs are justified.

Helpful hints

• Preserve evidence immediately: photos, receipts, repair estimates, medical records, and correspondence.
• Get a written explanation of the insurer’s final offer and the valuation method used.
• Check your policy for appraisal, arbitration, and suit-deadline language—these control many disputes.
• Use a demand letter that cites policy language and attaches substantiating documents.
• Consider an independent adjuster or expert report for property or valuation disputes.
• File a complaint with the Virginia Bureau of Insurance early if you think the insurer acted unfairly: scc.virginia.gov/boi.
• Before paying retainer fees or filing suit, ask an attorney for a cost-benefit analysis in writing.
• Don’t sign releases or accept final payment until you understand whether the offer fully covers your losses.
• Keep communications brief and factual; put important positions in writing and keep copies.