Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
Under Minnesota law, an insurance adjuster’s initial settlement offer often functions as a starting point, not the final amount. Insurers must follow fair-claims standards and avoid lowball tactics designed to delay or underpay valid claims (see Minn. Stat. §72A.22). By preparing a thoughtful counteroffer, you improve your chances of securing fair compensation.
Evaluate Your Damages
Begin by gathering all relevant documents: medical bills, repair estimates, pay stubs for lost wages and any proof of out-of-pocket expenses. Organize these records to calculate economic losses accurately.
Quantify Non-Economic Losses
Non-economic damages include pain, suffering and emotional distress. Although Minnesota law does not cap general damages in most situations, courts consider the severity of injury, recovery time and long-term impact when evaluating a claim.
Calculate a Fair Range
Combine economic and non-economic figures to establish a realistic settlement range. Many claimants set their initial counteroffer 20%–30% above their bottom line. This buffer accommodates further negotiation while reflecting the full value of your losses.
Draft a Clear Counteroffer Letter
Address the adjuster by name. Use a professional tone. Summarize your claim, attach supporting documentation and state your proposed settlement total. Cite relevant policy provisions or statutes if applicable.
Negotiation and Next Steps
After presenting your counteroffer, the insurer may accept, reject or propose another amount. If negotiations stall, consider mediation, appraisal (if your policy allows) or consulting a personal injury attorney. An attorney can review your position, guide valuation and handle communications with the insurer.
Helpful Hints
- Stay organized: Keep a dedicated file for all claim-related correspondence and documents.
- Be realistic: Use medical records and repair estimates to justify your numbers.
- Set clear deadlines: Request a written response by a specific date to keep negotiations on track.
- Maintain professionalism: Polite, fact-based communications often yield better results than emotional appeals.
- Seek legal input: Even if you negotiate alone, a brief attorney consultation can highlight pitfalls and strengthen your position.