What If My Insurance Settlement Offer Is Too Low?
The $68,000 Estimate With More Than $150,000 Missing
I reviewed a carrier estimate for approximately $68,000 on a substantial interior loss.
Instead of immediately arguing that the number was too low, I did something much more useful.
I compared it line by line against what actually had to be repaired.
That's where the claim changed.
The insurance company had included flooring but not enough flooring. They included drywall but stopped replacement at arbitrary locations. They included cabinets but used a repair approach that wasn't practical. They missed trim, doors, insulation, painting operations, contents manipulation, demolition operations and portions of the electrical work.
There were also several areas where they had the right type of item but the wrong quantity.
Our revised estimate came in at approximately $224,000.
There wasn't a magic line item worth $156,000.
The difference was hundreds of individual decisions.
That's why arguing that an insurance company's estimate is "too low" usually isn't enough.
You have to show exactly where it's low.
— Kevin Godfrey, Licensed Public Adjuster (NY #PA-1156995). Details anonymized; every claim is different and past results don't guarantee future outcomes.
Key takeaways
- •Request the itemized estimate with line items, quantities, unit prices, and depreciation
- •Commonly missing: tear-out, drying protocols, code upgrades, matching, contents, ALE, overhead and profit
- •An independent line-item scope is what actually moves the number
- •Submit the difference in writing with a supplemental proof of loss
- •Most policies include an appraisal clause for disputes over the amount of loss - and a release ends the claim
Low Offers Are Normal - and Negotiable
An underpaid claim usually is not fraud. It is an incomplete scope. The carrier''s adjuster wrote what they saw in one visit, using estimating software and internal guidelines, on a heavy caseload. What did not make the estimate does not get paid.
The offer is the opening number. Do not treat it as the verdict, and do not cash a check tied to a release you have not read.
Step 1: Get the Carrier''s Full Estimate
Not the summary - the itemized estimate with line items, quantities, unit prices, depreciation, and overhead and profit. You cannot argue with a total. You can argue with line items.
Step 2: Compare It Against Reality, Line by Line
The items most often missing:
- Tear-out needed to reach hidden wet or smoke-affected material
- Drying and remediation protocols instead of cosmetic repair
- Code and ordinance upgrades on older Nassau and Suffolk homes
- Matching of adjacent undamaged surfaces so repairs are not patchwork
- Odor sealing after a fire
- Contents, room by room, at the correct valuation
- Additional Living Expense while the home is unlivable
- Overhead and profit where a general contractor is genuinely required
- Debris removal
Step 3: Build an Independent Scope
Get a real line-item estimate of what the repair costs in your market - not a one-page contractor bid. This is the document that moves the number.
Step 4: Put the Difference in Writing
Item by item: what is missing, why the policy owes it, what it costs, and the evidence behind it. Then submit a supplemental proof of loss for the corrected amount.
Step 5: Use the Appraisal Clause If Needed
Most policies include an appraisal provision for disputes over the amount of the loss. Each side appoints an appraiser, and an umpire resolves the difference. It is often faster than litigation - but check your policy for how it works and any time requirements.
Step 6: Do Not Sign the Release
A release generally ends the claim. Partial payments during an open claim usually do not - but a release does. Read anything before you sign it.
Get the Scope Checked
Bring us the estimate. We will tell you whether the offer is short, and by roughly how much.
Call 516-410-0164 for a free claim review.
For official guidance on property insurance and claim rights, visit the New York State Department of Financial Services.
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