How to respond when an insurer stops communicating or threatens to close your claim

Disclaimer: This article provides general information about Delaware law and practical steps to protect your interests. It is not legal advice. If you need advice about your specific situation, consult a licensed attorney.

Detailed answer — key rights and steps under Delaware law

Insurers in Delaware must handle claims fairly and in good faith. Delaware law addresses unfair claims settlement practices and gives the Delaware Department of Insurance (DOI) authority to investigate complaints. See Delaware’s insurance code on unfair claim settlement practices: Title 18, Chapter 23 — Delaware Code. If your carrier stops responding or threatens to close your claim without a valid basis, you have practical and regulatory options to protect your claim and your legal rights.

Immediate practical steps to protect your claim

Document every interaction. Keep detailed notes of phone calls (date, time, person, summary), and save emails, text messages, letters, and photos. Documentation is critical if you later file a complaint or bring a legal claim.
Request updates in writing. Send a short written request for a status update and a clear timeline. Use email or certified mail so you have a record. Ask for: (a) the current status, (b) any outstanding items you must provide, and (c) a firm date by which they will respond.
Quote your policy and ask for specifics. If the insurer threatens to close the claim, ask them to identify the policy provision or legal basis for closure and the date the claim-handling file will be closed.
Follow up promptly on any requests from the insurer. Provide requested documents, estimates, or proof-of-loss forms quickly. Missing deadlines in your policy could jeopardize your claim.
Escalate within the company. Ask for the claims supervisor, the claims manager, or the insurer’s internal complaint or ombudsman unit. Many insurers have formal internal review processes.

When to involve the Delaware Department of Insurance

If the insurer ignores you, gives no reasonable timeline, or threatens closure without explanation, consider filing a complaint with the Delaware DOI’s Consumer Services. The DOI can investigate mishandling and may compel responses or take enforcement action. File a complaint or learn how to submit documentation at the Delaware DOI consumer complaints resource: Delaware Department of Insurance — Consumer Complaints.

Potential legal claims and attorney help

In some cases, an insurer’s failure to respond or wrongful closure may be a breach of contract or give rise to a bad-faith claim. Delaware law recognizes duties of good faith and fair dealing in insurance contracts. If the insurer’s conduct has caused you financial harm, consult a lawyer experienced in insurance claims to review options, which may include demand letters, arbitration (if your policy requires it), or litigation.

Before suing, track your policy’s notice and suit deadlines (sometimes called notice of loss, proof-of-loss, appraisal, or suit-prejudice clauses). Missing a policy deadline can be fatal to a claim, so act quickly if an insurer is unresponsive.

Other consumer protection options

Consider contacting the Delaware Attorney General’s Consumer Protection Unit if you suspect broader consumer harm: Delaware Attorney General — Consumer Protection.
If your claim relates to a homeowner’s mortgage or lender, notify the mortgagee/loss-payee as required by your policy.

Sample short written request for an update (use or adapt)

Subject: Claim # [Your Claim Number] — Request for Status and Specific Basis for Closure

To: [Adjuster name / Claims Department]

I am writing to request a written status update on claim number [claim number]. Please provide:
1) The current status of the claim and any outstanding items I must submit.
2) The factual or policy basis for any proposed closure and the date you intend to close the claim.
3) A firm timeline for resolution (please reply within 10 business days).

Please send your reply to my email at [your email] and by mail to [your address]. Thank you for your prompt attention.

Sincerely,
[Your name] [Phone number]

Helpful hints

Keep one organized claim file (paper and electronic). Store all photos, receipts, estimates, bills, and correspondence in one place.
Set calendar reminders for deadlines you receive or for follow-ups (e.g., 10–14 days after each written request).
Use certified mail for important letters you want proof were sent and received.
Be concise and factual in written communications; do not admit fault or make statements that could be misinterpreted.
If the insurer refers to a policy provision you don’t understand, ask them to cite the exact policy section and page. You can also request a copy of the complete claim file (some states and carriers provide limited access to claim files).
When you call, ask for a name and reference number for the call and record the adjuster’s position. Follow up the call with a short email summarizing what was discussed.
If you hire an attorney, a single letter from counsel often prompts a meaningful response from an insurer.

When to get legal help right away

Consider contacting an attorney promptly if:

The insurer threatens to close your claim before you had a reasonable chance to submit documentation or evidence.
You suspect the insurer is acting in bad faith (for example, refusing to investigate, misrepresenting policy terms, or refusing to pay clearly covered losses).
The amount in dispute is large and the insurer’s failure to respond could cause irreparable harm (e.g., loss of housing, safety issues, business interruption).

Acting quickly improves your chances of preserving evidence and deadlines. The Delaware Department of Insurance can help with investigations, but they cannot represent you in court or give legal advice.

Need more help? If you want specific next steps based on your claim, gather your policy, claim number, and all correspondence and speak with a Delaware-licensed consumer or insurance attorney for tailored legal advice.