How to Dispute an Underpaid Property Insurance Claim in Colorado

After going through the entire insurance claim process, you might be feeling worn down and exhausted. It should be easy to recover funds for your property damage, but unfortunately, for too many Coloradans, it’s not. 

Now, say you go through that entire claims process only to find yourself staring at a check that contains insufficient funds to cover your damage. What are you to do next? While a small part of you may feel resigned to just let it be, you absolutely should not. Now is the time to ensure you are compensated fairly. 

If you believe the settlement offered by your insurance company for your property damage is insufficient, here are the steps you can take to dispute an underpaid property insurance claim in Denver or across Colorado.

How to Appeal an Underpaid Claim

In Colorado, homeowner’s insurance claims may be denied for several reasons, including insufficient documentation or policy exclusions. When a claim isn’t outright denied, another scenario that often plays out in the state is underpayment. If this happens to you, there are a few steps you should take to dispute and overcome an underpaid claim to your Colorado property.  

1. Review current documentation – As you pursue an appeal on an underpaid claim, you first want to review all existing documentation from your insurance provider. What is included and excluded from the insurance settlement? Do you see any other discrepancies? 

2. Obtain a competing estimate – Next, contact a professional who can offer a second opinion to support your claim. Gathering a competing estimate will give your appeal legs to stand on and further documentation to support your case. The estimate could be from a public adjuster, general contractor, roofer, restoration specialist, mold remediator, environmental hygienist, engineer or other professional related to your damage. Because there are so many specialists to choose from, it can often be overwhelming to select the right one to review your damage. Hiring an attorney to quarterback the whole operation and vet the professionals is an easy way to ease this burden for homeowners. 

3. Share the estimate with your insurance company – Give the estimate to your insurance provider and offer them the opportunity to compare the estimate with their settlement. Point out discrepancies and note the qualifications of the professional who completed the estimate. After reviewing, the insurance company should answer for their shortcomings. If they don’t, another option for property owners is to invoke the appraisal clause. During the appraisal process, an impartial party will work to settle the claim with your insurer out of court.

Contact an Attorney to Discuss Your Options

Underpaid insurance claims are relatively common, but in Colorado, you have the right to appeal an underpaid claim. To learn more about your options and what steps to take, consult a legal professional who specializes in insurance claims. Our team at Kandell, Kandell & Petrie is here to help you get relief if your insurance company tried to deny or underpay you for your claim. Contact us today to speak to one of our Denver claims advisors to discuss your questions and concerns.