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What should you do if your insurance company underpays a claim?

On Behalf of | May 15, 2025 | Insurance Claims & Disputes |

Dealing with an underpaid insurance claim can be frustrating, especially when you’re counting on your insurance company to cover the costs. If you find that your insurance payout doesn’t match the coverage you expected, there are steps you can take to address the issue and increase your chances of receiving the full amount.

Review the details of your policy

Before taking any action, carefully review your insurance policy to confirm the coverage amounts and any limitations. Check if the payment aligns with the terms of your policy, including deductibles, coverage limits, and exclusions. Knowing the specific terms helps you determine if the underpayment is truly an issue or if it’s just a misunderstanding of your coverage.

Contact your insurance company

Reach out to your insurance company directly to ask for clarification about the payment. Mistakes can happen, and the underpayment may be due to an error in processing. Be prepared to explain your situation and provide any supporting documents that may help resolve the discrepancy. Having clear communication with the insurer can sometimes lead to a quick resolution without further steps.

File an appeal or formal complaint

If after speaking with your insurer, you’re still not satisfied with the payment, consider filing an official appeal. Many insurance companies have an internal process for disputes. Alternatively, you can file a complaint with the Texas Department of Insurance if you believe your insurer is acting in bad faith or failing to properly assess your claim.

Seek professional advice

If you feel your insurance company is not being fair, it may be time to seek advice from a professional. They can help you assess your claim and advise on the right course of action. This could include negotiating with the insurance company or filing a lawsuit, if necessary.

Insurance disputes can be complex, but staying organized and persistent can increase your chances of resolving an underpaid claim in your favor.