Decision Pages

What To Do If Your Claim Is Underpaid?

An underpaid settlement can often be increased. Here are the steps to challenge it.

Immediate Actions

Calculate the shortfall. Compare the approved amount against independent contractor estimates.
Identify what was underpaid. Was it depreciation, specific line items, overhead_and_profit, or items omitted from the estimate?
Obtain a detailed contractor estimate. If you only have the carrier's estimate, get 1–2 independent estimates to establish fair market value.
Document all communications. Record dates and details of all calls, emails, and letters with the carrier.

The adjuster missed some damaged items or didn't include all necessary repairs. This is often fixed with a supplement.

The adjuster applied depreciation above policy limits or to items that shouldn't be depreciated. Recalculation can recover this.

When 3+ trades are required, overhead_and_profit (20% total: 10% overhead + 10% profit) should apply but may be omitted.

Adjuster may have used regional labor rates below actual market rates in your area. Request local contractor quotes to establish fair labor costs.

Submit a supplement (Supplemental Claim): Request the carrier add missing items or recalculate estimates based on independent quotes.
Hire a Public Adjuster: They will re-inspect, re-estimate, and negotiate directly with the carrier to increase the settlement.
Escalate to an Attorney: For significant underpayment, consult an insurance attorney regarding potential breach of contract or bad faith.

Gather evidence: Contractor estimates, photos of damage, quotes for labor and materials.
Document specific line items: Create an itemized list of what was missed or underpaid, with contractor quotes as backup.
Request adjuster reconsideration: Send a formal written request for supplemental estimate, detailing each addition or correction.
Request reinspection: Ask the adjuster to re-inspect in light of new information or contractor findings.
Set a deadline: Request written response within 15 business days.

Upload your documents for a structured claim analysis.