Understanding your options when an insurer refuses to increase its offer

Disclaimer: This information is educational only and not legal advice. For advice specific to your situation, consult a licensed Utah attorney.

Detailed Answer

Short answer: if an insurance company refuses to increase what it calls a final offer, you have several options under Utah law and under the terms of your insurance policy. Which options are available depends on the type of claim (auto, property, liability) and your policy language. Common next steps include demanding appraisal (for property claims), asking for mediation or arbitration, filing a complaint with the Utah Insurance Department, and—if those fail—filing a lawsuit for breach of contract and any related claims. Below is a plain-language walkthrough using a simple hypothetical.

Hypothetical fact pattern

Imagine you file a property claim after a water leak. The insurer inspects and makes a payment it calls a “final offer.” You believe covered damage and repair estimates are much higher. The insurer refuses to increase the offer.

Step 1 — Read your policy carefully

Your policy controls what procedures are available. Look for an appraisal clause (common in homeowner’s policies) and any arbitration or dispute-resolution requirements. An appraisal clause usually allows each side to appoint an appraiser and, if they disagree, to select an umpire. That process can force a valuation without suing. If your policy requires mediation or arbitration, you may need to follow those steps before bringing a court case.

Step 2 — Document and make a firm written demand

Gather all estimates, receipts, photographs, and expert reports. Send a clear written demand letter that cites the policy sections you believe support additional payment and include your evidence. Ask the insurer to reconsider within a reasonable time. This creates a record you can use later if you file a complaint or lawsuit.

Step 3 — Administrative complaint and regulator involvement

If negotiation fails, you can file a consumer complaint with the Utah Insurance Department. The Department reviews complaints, can request information from the insurer, and may facilitate resolution. The Department cannot give you legal advice but can investigate unfair claims practices. For consumer complaint information see the Utah Insurance Department: https://insurance.utah.gov/

Step 4 — Alternative dispute resolution

Mediation or binding arbitration are common next steps when an insurer declines to increase its offer. Mediation is a neutral negotiation process that often resolves disputes faster and cheaper than court. Arbitration may be binding; check your policy and any written pre-dispute arbitration agreements before agreeing.

Step 5 — Lawsuit for breach of contract and related claims

If the insurer refuses to pay what the policy requires, you can sue for breach of contract in Utah district court. Your lawsuit can seek the unpaid policy benefits plus interest and court costs. In some cases, claimants also pursue causes of action for unfair claims practices or bad faith. Utah’s Insurance Code and related legal doctrines govern when those claims apply. See Utah Insurance Code (Title 31A) for the statutory framework: https://le.utah.gov/xcode/Title31A/31A.html

Bringing a lawsuit has costs and deadlines (statutes of limitations and pre-suit notice requirements may apply). Consult an attorney quickly so you do not miss filing deadlines.

When you might have a bad-faith or unfair-claims-practice claim

Not every low offer or refusal is illegal. Bad-faith or unfair-claims-practice claims require more than disappointment: they require misconduct such as deliberate misrepresentation of coverage, unreasonable delay, or refusal to investigate credible proof. The Utah Insurance Department enforces consumer protections and can guide you on unfair-practice allegations: https://insurance.utah.gov/

Evidence matters

To win a contested claim you will generally need strong documentation: the policy, repair estimates, expert reports, inspection notes, and written communications with the insurer. Keep all receipts and time-stamped correspondence.

Helpful Hints

• Read your policy now. Look for an appraisal clause, arbitration clause, and notice requirements.
• Preserve all evidence: photos, estimates, bills, emails, recorded calls (only if permissible under Utah recording rules).
• Send a written demand that summarizes your evidence and cites the policy sections that support your position.
• File a complaint with the Utah Insurance Department if the insurer refuses to negotiate: https://insurance.utah.gov/
• Consider appraisal for property claims if your policy includes an appraisal clause; it can produce an independent valuation without full litigation.
• Try mediation before filing suit. Mediation is usually faster and cheaper than litigation.
• Contact a Utah-licensed attorney early. An attorney can advise on whether you have grounds for a breach-of-contract or unfair-practices claim and can watch statute-of-limitations deadlines.
• Use Utah legal-help resources to find counsel: Utah State Bar lawyer referral is available at https://www.utahbar.org/
• Do not accept a final offer under pressure. If you accept, you typically give up the right to pursue further payment for the same loss.

Where to go next

If you are unsure which path fits your case, start with a written demand and a consumer complaint to the Utah Insurance Department. If the disagreement is significant (large claim or clear coverage dispute), consult a Utah attorney who handles insurance disputes before timelines expire.

For statutory background on insurance regulation in Utah, see the Utah Insurance Code (Title 31A): https://le.utah.gov/xcode/Title31A/31A.html

Final note: This article explains common legal paths and practical steps in Utah, but it does not substitute for legal advice tailored to your situation.