This is a hard subject to explain to a lot of people.
Let me start by saying that you need to understand what is in this article before you blow your top at some insurance adjuster. There are ways around a reservation of rights defense, but you have to be stealthy and, above all, you have to remain calm.
If you have found this article, you are either an insurance adjuster doing some research or you are involved in a claim and being advised that your claim is not being paid at this time and that they are putting the claim on a “reservation of rights”.
I’m going to speak on Texas and specifically on auto insurance as Texas is my home State and auto insurance is where I have the most experience, although the reservation of rights or its equivalent exists in almost every State in the U.S. and can come about on claims that are not automobile claims.
Back in May, I saw a sad story about a filmmaker in South Africa that was killed by the head butt of a giraffe out in the bush while filming for a movie.
In my mind, I related that to how the giant insurance companies just throw around invalid denials to diminished value claims to shut down the claimant from figuring out how in the heck to fight, therefore making them give up.
Until they find us.
A while ago, I was provided with a pretty big list of arguments that attempted to show why diminished market value on automobiles is not real, or at least why it is never very much.
I am going to address each one, point by point so as to be very thorough.
Mind you, these arguments were made by a professional who evaluates the market of stigma losses on automobiles.
Diminished Value Claim Denial!
So you’ve been doing all this research on diminished value, and you’ve figured out that the at fault party’s insurance company should pay you for the lost value your car has suffered, right? The only problem is that you got a diminished value claim denial by the insurance company. Although it may make you want to rip your hair out, don’t get discouraged! It is very common for insurance carriers to deny diminished value claims as a tactic to weed out those victims who will be frustrated enough to just give up on their claim. They use this tactic because the sad fact is that most people DO give up. You know why? Forcing an insurance company to be fair is HARD! Also, there is generally nobody to help accident victims with their small value property damage claims and insurance companies know it. So where does that leave you? Is there any hope of recovering your lost value? Read on my friend, read on. . . . (more…)