Disclaimer: This article is for educational purposes and does not constitute legal advice. Consult a qualified attorney for guidance.
What Is a Counteroffer?
A counteroffer is a response to the insurance adjuster’s initial settlement proposal. It outlines your assessment of the claim’s value based on your documentation. Negotiation starts here.
Why You Should Consider a Counteroffer
Adjusters often start with a low-ball offer. Presenting a well-supported counteroffer demonstrates your seriousness and can lead to a higher settlement. You have the right to negotiate terms before accepting any offer.
Maine Law on Insurance Claim Negotiation
Under Maine’s Unfair Claim Settlement Practices statute, insurers must act in good faith. See 24-A M.R.S. §2438. This provision prohibits unreasonable delay and unfair valuation of claims.
Adjusters cannot force you to accept their first number. You may request more information and provide your own evidence to support a higher amount.
Steps to Prepare and Present Your Counteroffer
- Review Your Policy and Coverage. Understand your policy limits, deductibles, and exclusions before negotiating.
- Gather Documentation. Collect repair estimates, medical bills, receipts, photographs and witness statements to show actual losses.
- Calculate Your Claim Value. Sum up your expenses and consider non-economic losses like pain and suffering if applicable.
- Draft a Demand Letter. Write a concise letter outlining the facts, citing your evidence, and stating the counteroffer amount.
- Send the Counteroffer. Submit your letter via certified mail or another trackable method. Keep proof of delivery.
- Follow Up Promptly. If the adjuster responds, negotiate further or request clarification. If necessary, bring in an attorney.
Next Steps if Negotiations Stall
If the insurer refuses to make a fair offer, you can file a complaint with the Maine Bureau of Insurance or consider alternative dispute resolution like mediation. In complex cases, hiring an attorney ensures your rights remain protected.
Helpful Hints
- Always document every communication in writing.
- Be clear and concise in your demand letter.
- Stick to facts and avoid emotional language.
- Keep copies of all correspondence and evidence.
- Set realistic deadlines for the insurer’s response.
- Consult an attorney if the insurer threatens to deny coverage.