Detailed Answer
Diminished value refers to the loss in market value of a vehicle after it has been damaged and repaired. North Dakota law does not include a statute expressly defining “diminished value,” but insurers handling first-party property claims must comply with the contract terms and the state’s unfair claims regulations. Under NDCC § 26.1-04-01, an insurer must investigate and respond to claims promptly and fairly.
To submit a diminished value claim in North Dakota, follow these steps:
- Determine pre-accident and post-accident value: Obtain a pre-accident valuation report from a reliable source (e.g., Kelley Blue Book, NADA). After repairs, secure an independent appraisal that quantifies the vehicle’s current market value.
- Collect supporting documentation: Gather repair invoices, before-and-after photos, appraisal reports, repair estimates and receipts for any optional equipment or upgrades.
- Prepare a demand letter: Address the insurer’s claims department. Include your policy number, date of loss, a concise statement of your diminished value calculation, and all supporting documents as attachments.
- Submit your claim: Send the demand letter and exhibits via certified mail with return receipt or through your insurer’s secure online portal. Retain proof of delivery and a copy of your submission.
- Follow up within the statutory timeframe: Under NDCC § 26.1-04-01, the insurer must acknowledge your claim and begin an investigation promptly—typically within 15–30 days. If you receive no response, send a written reminder or contact the adjuster directly.
- Escalate if you encounter delays or denial: If the insurer undervalues or denies your claim, you may file a complaint with the North Dakota Department of Insurance (nd.gov/ndins) or explore dispute resolution options such as mediation or binding arbitration, if provided in your policy.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Always consult a licensed attorney for guidance tailored to your individual circumstances.
Helpful Hints
- Keep a detailed file: save all letters, emails and proof of delivery.
- Obtain more than one appraisal to support your diminished value figure.
- Review your policy’s appraisal or dispute resolution clause before filing.
- Maintain professional, concise communication with the insurer.
- Notify your insurer of any new information or additional repairs immediately.
- Create a timeline logging each interaction and response.
- Consider hiring a diminished value specialist for complex cases.