The process of filing an insurance claim, submitting relevant documentation, and potentially dealing with an adjuster can be draining. Once your claim is approved, you might breathe a sigh of relief.
However, in some cases, you may encounter more issues after your claim has been closed. For instance, you might find that repairs to your home exceeded the insurance payout, or you may identify another liable party involved.
Can a closed insurance claim be reopened in these cases? Theoretically, the answer is yes, but the process is often more complex than it may seem.
Can You Ever Reopen a Closed Insurance Claim?
Most of the time, insurance claims are final once they’ve been closed, but there are certain exceptions. Many policyholders mistakenly believe that there are no circumstances under which they can reopen a closed claim, or additional compensation can be asked for after an insurance check is received, but this isn’t true.
In some cases, like if the insurance company acted in bad faith or you discover new evidence, it may be possible to reopen your claim and ask for increased compensation.
Keep in mind, however, that because insurance companies are motivated to protect their own financial interests, they may be hesitant to reopen a claim that’s been closed. If you believe you have a valid reason to reopen a claim and your insurance company isn’t cooperating, it may be time to bring in legal help.
The skilled team at Brasher Law Firm, PLLC, has years of experience advocating for Texas and Louisiana policyholders against insurance companies that shirk their obligations. If you think you have a legitimate reason to reopen your claim, we can represent you in negotiations and possible litigation.
Can you Still Negotiate for More Compensation After Receiving an Insurance Check?
Yes, even if you’ve already received and cashed a check from your insurance company, that doesn’t always mean the claim is final. In Texas, policyholders still have the right to dispute the amount paid, negotiate for more, or seek additional compensation if the payment falls short, especially if the insurance company acted in bad faith.
It’s also important to know that you are allowed to start making repairs on your property after receiving a check. In fact, under Texas and Louisiana law, you have a duty to take reasonable steps to prevent further damage to your property. But just because you begin repairs doesn’t mean you’ve accepted the settlement as final — particularly if the insurance payout was too low.
Insurance companies often issue low settlements quickly, hoping you’ll accept without question. If you later realize the funds are not enough to cover repairs, or other losses, you don’t have to accept that outcome. You can still challenge the settlement, especially if no release form was signed or if the insurer failed to properly investigate your claim.
When Can a Closed Insurance Claim Be Reopened in Texas or Louisiana?
While reopening a claim may be possible in some cases, it’s not wise to count on this being an option. For instance, if you file a homeowners insurance claim and your insurance company only offers half the amount you asked for, you shouldn’t just accept the settlement and assume that you can reopen the claim later.
Generally, reopening a claim is permitted if you discover some relevant detail you weren’t aware of when you accepted the settlement.
While individual circumstances can vary, the following scenarios are examples of when you might be able to reopen an insurance claim in Texas or Louisiana:
There Was an Error on the Claim Documentation
If there are significant errors on the claim agreement you signed, you may be able to get the claim reopened.
For example, imagine you file a home insurance claim after a fire damages your kitchen. Your insurer agrees to cover repairs, and you sign the settlement agreement. Later, you notice the documentation mistakenly leaves out coverage for smoke damage in other parts of the house.
In this case, you should be able to reopen the claim and sign a new agreement that includes all expenses.
You Never Actually Signed a Release
In most cases, you’re required to sign a release form (also called a “release of all claims” form) when you accept an insurance settlement. This form states that by accepting the insurance company’s settlement agreement, you’re waiving your right to file a lawsuit or seek further damages.
If you and your insurer come to a verbal settlement agreement but you never actually sign a release, your claim may still technically be open, meaning you can pursue additional payment.
The Insurance Company Pressured You Into Accepting a Settlement
Insurance claims are often final once a settlement agreement has been signed. However, if you only signed the agreement because the insurance company pressured you to or otherwise used unethical tactics, it may be possible to reopen the claim. Here are a few situations where this might happen:
- You couldn’t fully understand the terms because of a language barrier
- You were under such extreme stress that you couldn’t think clearly
- The insurance representative used intimidation or threats to coerce you into signing
- The representative told you the offer would be revoked if you didn’t accept immediately
- The representative lied about your coverage in order to get you to sign
Unless you’re already familiar with bad faith insurance tactics, it may be difficult to determine whether your insurance company’s actions violated the law. When you schedule a free consultation with our legal team, we’ll discuss your situation and help you understand whether you have a valid bad faith insurance claim.
You Discover New Evidence
What happens when you settle a home insurance claim and later discover additional damage that wasn’t included in the original payout? In this situation, you may be able to reopen your claim and seek compensation for the newly uncovered losses.
For example, imagine a severe hailstorm damages your roof. You file a claim, and your insurance company pays for repairs to the visible damage. However, during the repair process, your contractor discovers hidden structural damage to the attic and water leaks that weren’t obvious at first. Because these issues were caused by the same storm, they may still be covered under your policy. In this case, you could submit the additional repair estimates to your insurer and request that your claim be adjusted to cover the newly found damage.
You Identify Another Liable Party
Discovering multiple liability is another notable exception to be aware of. If you determine that a party you were previously unaware of may be partially at fault for your accident, it may be possible to file a claim against that person.
Suppose a pipe bursts in your home, causing extensive water damage. You file a claim with your homeowner’s insurance and receive compensation for repairs. Later, an inspection reveals that the damage was made worse because the pipe itself was defective due to a manufacturing flaw. In this situation, the pipe manufacturer—or even the contractor who improperly installed it—could be considered partially liable.
While your insurance claim helps cover immediate losses, identifying another responsible party may allow you to recover additional compensation beyond what your insurance policy provides.
Authorized Repairs Caused Further Damage
This particularly unfortunate scenario often only happens with home insurance claims. Typically, once a claim is approved, the insurer will pay for a contractor to make the necessary repairs. But what happens if the repairs are done so poorly that they cause more damage?
It’s usually best to address this kind of issue with the contractor first. Reputable contractors carry errors and omissions insurance to pay for mistakes they make on the job, and you may be able to rectify the issue with the contractor’s insurance company.
Unfortunately, not all contractors are reputable. If you can’t resolve the problem with the contractor, you should reach out to your insurance company. Your insurer may reinstate the claim to make sure your home is repaired correctly.
How to Reopen an Insurance Claim
Do you have a closed insurance claim that you think needs to be reopened? While there’s no guarantee that your insurance company will honor your request, taking the following steps can improve your chances of a positive outcome:
Gather All Relevant Evidence
Before agreeing to revisit a claim, your insurance company will demand evidence. For instance, if your home repairs have exceeded the value of your insurance payout, you would need to provide documentation of the total repair cost. Gather as much relevant evidence as possible before proceeding.
Talk to Your Insurance Company
In some cases, your insurance company may agree to reopen your claim after reviewing your evidence and discussing the issue with you. Remain polite and patient, but don’t be afraid to push back if the insurer tries to downplay the value of your evidence.
Consult an Insurance Lawyer
Can a closed insurance claim be reopened even after your insurance company refuses to reopen it? It may seem like a long shot, but if you have strong enough evidence, our skilled insurance lawyers may be able to negotiate with your insurer and persuade it to reopen the claim.
Having Trouble Reopening a Closed Insurance Claim?
Can a closed insurance claim be reopened? If you need to reopen an insurance claim because of a good-faith error on the part of your insurance company, your insurer will likely allow you to do so without any trouble. However, insurance companies don’t always operate in good faith.
If your insurer refuses to allow you to reopen a closed claim when you have a legitimate reason, don’t accept their reasoning without talking to a lawyer.
The seasoned attorneys at Brasher Law Firm, PLLC, are adept at identifying bad-faith insurance tactics. Insurance companies know this, and they also know that if they’re unwilling to negotiate with us, we won’t hesitate to pursue legal action.
We understand how frustrating it can be to deal with unhelpful or unethical insurance companies. If you live in Texas or Louisiana and are having trouble reopening a closed claim, contact us to schedule a free, no-obligation consultation.