Negotiating a claim with an insurance adjuster demands preparation and clear communication. Under South Dakota law, you have the right to challenge an offer you believe undervalues your losses.
1. Review the Adjuster’s Initial Offer
Carefully read the adjuster’s written offer. Note the covered losses, depreciation, deductibles, and policy limits. Understanding how the insurer arrived at its figure helps you prepare a stronger response.
2. Gather and Document Evidence
Collect photos, receipts, repair estimates, medical bills, and any expert reports. Well-organized documentation strengthens your position and reduces disputes over facts.
3. Calculate Your Claim’s Value
Use your evidence to prepare an independent estimate of damages. Include property repairs, replacement costs, medical expenses, lost income, and other covered losses. Be realistic and reference industry standards.
4. Draft a Formal Counteroffer Letter
Address the letter to the adjuster and insurer. State why the initial offer falls short. Attach supporting documents and provide a clear counteroffer amount. Cite policy provisions and industry guidelines where possible.
5. Submit and Follow Up
Send your counteroffer by certified mail or other trackable delivery method. This creates an official record. Follow up promptly if you do not receive a timely response.
6. Negotiate in Good Faith
Under SDCL §58-12-9 (Standards for prompt, fair, and equitable settlements), insurers must handle claims fairly. Maintain professional communication, be prepared to justify your figures, and listen to the adjuster’s concerns. You can propose compromise figures to bridge differences.
7. Consider Appraisal or Mediation
If negotiations stall, many policies include an appraisal clause. An independent appraiser can value your loss, and an umpire can resolve disputes. You may also pursue mediation or file a bad faith claim if the insurer violates SDCL §58-12-9.
Legal Framework in South Dakota
South Dakota prohibits unfair settlement practices. SDCL §58-12-9 outlines requirements for prompt and equitable claim handling. You can review the full statute at sdlegislature.gov.
Helpful Hints
- Keep detailed notes of all communications.
- Obtain multiple repair or replacement estimates.
- Stay within policy deadlines to preserve your rights.
- Consider hiring a public adjuster for complex property claims.
- Document any counteroffer response in writing.
Disclaimer: This article is for educational purposes only and does not constitute legal advice.