Should I Prepare and Present a Counteroffer to an Insurance Adjuster’s Initial Settlement Proposal?
Detailed Answer
When an insurance adjuster delivers an initial settlement offer, it often reflects the insurer’s starting position—not the full value of your claim. In North Dakota, policyholders have the right to negotiate. Presenting a well-supported counteroffer can prompt an insurer to revisit its evaluation and improve its offer.
Under N.D. Cent. Code § 26.1-05-03, insurers must act in good faith when handling claims (see https://www.legis.nd.gov/cencode/t26c01-5.html#26.1-05-03). If an insurer unreasonably delays or undervalues your losses, you may later pursue a bad faith action under N.D. Cent. Code § 26.1-36-10 (see https://www.legis.nd.gov/cencode/t26c01-36-10.html#26.1-36-10).
Steps to prepare your counteroffer:
- Assess Your Damages: Compile medical bills, repair estimates, wage-loss documentation, and any other expenses. For instance, if you have $12,000 in documented damages and the insurer offers $5,000, you could anchor your counter at $10,000.
- Build Your Case: Include objective evidence: medical records, expert reports, photos, and invoices. A clear demand letter outlining each damage category increases credibility.
- Draft a Demand Letter: Address the adjuster by name, list your damages with itemized costs, cite relevant policy provisions, and set a reasonable deadline (e.g., 30 days).
- Submit the Counteroffer: Send via certified mail or another trackable method. Retain proof of delivery.
- Negotiate in Good Faith: Expect a back-and-forth. Always respond promptly, maintain professionalism, and adjust your position based on new information.
Presenting a counteroffer lets you control the narrative. You demonstrate that your claim has merit and warrant a higher payout. Even if the insurer declines your first counter, it often returns with a better offer than the initial lowball proposal.
Helpful Hints
- Keep detailed records of all communications, offers, and counteroffers.
- Use clear, concise language in your demand letter—avoid emotional statements.
- Consult an attorney if the insurer repeatedly undervalues or delays payment.
- Be realistic: base your numbers on documented losses, not on what you hope to receive.
- Allow time for the insurer to review your materials—rush jobs may backfire.
- Don’t accept the first offer without exploring your rights under your policy and state law.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney to discuss your specific situation.