Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a licensed attorney for personalized assistance.
Detailed Answer
When an insurance adjuster issues an initial settlement proposal, it often reflects the insurer’s starting position rather than the full value of your losses. Under Ohio law, you have the right to negotiate and present a counteroffer to secure fair compensation.
Ohio Revised Code § 3901.20 prohibits unfair claims settlement practices. Insurers cannot unreasonably delay, underpay or deny valid claims. See ORC 3901.20. If an insurer unreasonably refuses to settle within policy limits, you may pursue extra-contractual bad faith damages under ORC 3923.19.
Before submitting a counteroffer, gather all supporting documentation: medical records, repair estimates, lost-wage statements and billing invoices. Prepare an itemized demand letter that outlines each category of damages and attaches proof. A clear, well-documented counteroffer demonstrates the legitimacy of your claim and pressures the insurer to reconsider their valuation.
If you have already filed a lawsuit, Ohio Civil Rule 68 allows you to serve a formal offer of judgment. If you obtain a judgment greater than your offer, the insurer may be responsible for post-offer costs and attorney fees. Discuss this strategic tool with legal counsel before resorting to litigation.
Helpful Hints
- Document everything: keep copies of letters, emails and notes from phone calls.
- Itemize losses: break down medical bills, property damage, lost income and other expenses.
- Use reliable estimates: secure multiple repair or replacement quotes.
- Set a reasonable deadline: reference any policy or statutory timelines for insurer response.
- Maintain professionalism: being courteous yet firm can facilitate productive negotiation.
- Review your policy: check for appraisal or mediation clauses that may affect settlement.
- Know when to seek help: if the insurer stalls or refuses to negotiate in good faith, contact an attorney.