Quick answer
If an insurer tells you their offer is “final,” do not accept it immediately. Ask for the offer in writing, preserve all evidence, confirm whether the offer includes all bills and liens, check whether the insurer is limited by policy limits, consider counter‑demand or appraisal (for property claims), and get an attorney’s review before you sign a release. You can also lodge a complaint with the Texas Department of Insurance if the company is not following Texas insurance law.
Detailed answer — steps to take right away (Texas-focused)
1. Ask for the insurer’s final offer in writing and the reasons behind it
Request a written statement that explains the offer, how the insurer calculated it, whether it reflects the policy limit, and what claims or bills it resolves. Written communications create a record you can use if you later dispute the claim.
2. Preserve and organize all evidence
Collect and keep copies of medical records, medical bills, repair estimates, invoices, photos, police reports, witness contact details, and any correspondence with the insurer. Note dates and details of phone calls (who you spoke with, the time, and what was said).
3. Don’t sign anything until you understand the release language
Most settlement checks come with a release. A broad (general) release can bar all future claims for the same event. If you are offered a check, ask for the exact release language in advance and consider asking for a limited release that preserves other claims you have not yet discovered. If you already signed a general release, your ability to recover more later will likely be limited.
4. Confirm whether the insurer’s statement means they are at policy limits
Insurers often say an offer is “final” because they have paid the insured’s policy limit. Ask for a written statement of policy limits and whether the insurer considers the policy exhausted. If the insurer has paid the insured’s policy limits, you may need to consider whether a claim against the insured personally is appropriate.
5. Consider a counter‑demand with documentation
If you believe the offer is too low, prepare a written counter‑demand that summarizes damages, provides supporting records (medical records, bills, lost wages, repair estimates), and sets a specific settlement demand. Send it by certified mail or another trackable method.
6. Use appraisal or other contract remedies for property claims
Homeowners or property insurance policies sometimes contain an appraisal clause for disputes about the amount of loss. If your policy has an appraisal clause, invoking that process can lead to an independent valuation rather than a low settlement from the company. Check your policy and consider invoking appraisal promptly if applicable.
7. Think about deadlines and the statute of limitations
In Texas, many lawsuits for personal injury or property damage must be filed within two years of the injury or damage (see Texas Civil Practice & Remedies Code Chapter 16). Missing the statute of limitations can bar your claim. If negotiations are stalling, ask an attorney whether you should file suit before filing a full release. (See Texas statutes: Civil Practice & Remedies Code, Chapter 16: https://statutes.capitol.texas.gov/ — review §16.003 and related sections for timing rules.)
8. Know Texas law on unfair settlement practices and prompt payment
If the insurer is refusing to investigate, failing to reasonably attempt settlement, or otherwise acting in bad faith, you may have remedies under the Texas Insurance Code. Two commonly cited provisions are:
- Texas Insurance Code Chapter 541 (Unfair Settlement Practices): https://statutes.capitol.texas.gov/Docs/IN/htm/IN.541.htm
- Texas Insurance Code Chapter 542 (Prompt Payment of Claims): https://statutes.capitol.texas.gov/Docs/IN/htm/IN.542.htm
If you believe the insurer violated these rules, you can file a complaint with the Texas Department of Insurance and, in some situations, pursue legal damages.
9. File a complaint with the Texas Department of Insurance (TDI) if needed
Before or after talking to an attorney, you can file a consumer complaint with TDI. TDI handles complaints about claims handling and can investigate insurer conduct: https://www.tdi.texas.gov/consumer/complrequest.html. You can also review TDI claim guidance here: https://www.tdi.texas.gov/consumer/claims/index.html.
10. Talk to an attorney experienced with insurance claims
An attorney can review the offer and release language, evaluate your damages, and advise whether you have a bad‑faith claim, whether to sue before signing a release, or whether to accept a structured or global settlement. Many personal injury attorneys work on contingency, and property claim attorneys often offer initial reviews. If you don’t have an attorney, ask about a free consultation and whether filing suit is advisable before deadlines expire.
11. Practical negotiation tips
- Request itemized figures and demonstrable calculations for the insurer’s offer.
- Submit updated medical records and bills before the insurer issues a final check.
- Ask whether liens, subrogation, or medical providers will be paid from the settlement.
- If you must accept payment but foresee more expenses, ask whether a limited release or reservation of rights is possible.
- Keep all receipts and records of additional treatment; you may need them to justify reopening a dispute if bad facts appear.
Bottom line: A “final” offer is often a negotiating position, not an unavoidable deadline. Protect your rights by getting the offer in writing, preserving evidence, confirming policy limits, considering appraisal or counter‑demand, watching deadlines, and consulting an attorney before signing a release. If you suspect unlawful claims handling, you can complain to TDI and explore remedies under Texas Insurance Code Chapters 541 and 542.
Disclaimer: This information is for general education about Texas law and is not legal advice. I am not a lawyer. For advice tailored to your situation, contact a licensed Texas attorney.
Helpful Hints
- Get every offer and explanation in writing. Written records matter in disputes and lawsuits.
- Never sign a general release until you know the full extent of your medical costs and future needs.
- Keep a contemporaneous file with dates, names, and a short summary of every communication with the insurer.
- If the insurance company invokes policy limits, ask for a written policy limits letter.
- Invoke appraisal promptly for property claims if your policy allows it.
- If the insurer asks you for a recorded statement, get advice from an attorney before giving one.
- Track the statute of limitations (typically two years for most personal injury and property claims in Texas); consult an attorney well before that deadline.
- If you suspect unfair practices, submit a complaint to the Texas Department of Insurance: https://www.tdi.texas.gov/consumer/complrequest.html.