Tennessee Policyholders: Don’t Accept Less Than You Deserve
You’ve filed your claim. You’ve done everything by the book. Then the insurance adjuster sends an offer — and it’s way too low to cover the damage. Unfortunately, this is a common experience for Tennessee homeowners dealing with property damage claims.
Whether it’s a roof replacement, fire loss, or water damage, insurance companies often start low, hoping policyholders will accept the offer without a fight. The good news? You don’t have to accept it — and there are strategic steps you can take to push back and get what you’re owed.
💰 Why Insurance Companies Make Lowball Offers
Insurance is a business — and like any business, the goal is to maximize profits. That means paying out as little as possible on every claim. Here are a few common tactics insurers use to justify low offers:
- Using preferred contractors with bottom-dollar estimates
- Applying excessive depreciation to your property
- Omitting key repairs or line items from the scope of work
- Claiming part of the damage is excluded or unrelated to the loss
- Blaming wear and tear, poor maintenance, or pre-existing damage
These strategies are designed to save the insurance company money — not to make you whole.
⚠️ What a Lowball Offer Looks Like
Not sure if your offer is lowball? Look for red flags like:
- The offer is significantly less than contractor estimates you’ve received
- The adjuster rushed the inspection or ignored obvious damage
- You weren’t allowed to be present during the inspection
- Items were undervalued or left off entirely (especially in contents claims)
- The scope of repairs doesn’t include things like permits, code upgrades, or proper matching of materials
Even if the offer seems “official,” it’s just a starting point — not the final word.
✅ What to Do If You Receive a Lowball Insurance Offer
Here’s how to protect your rights and push back with confidence:
1. Don’t Accept the Offer Right Away
You are not obligated to accept the first offer. Politely decline and request a breakdown of how the adjuster reached the number.
2. Get Independent Estimates
Bring in your own licensed contractor, roofer, or public adjuster to prepare a detailed repair estimate. Make sure it covers everything — materials, labor, code compliance, and permits.
3. Request a Re-Inspection
If major damage was missed or overlooked, ask the insurer to reinspect the property, ideally with your contractor or representative present.
4. Challenge the Depreciation
Tennessee law allows for Replacement Cost Value (RCV) policies, which pay more than just Actual Cash Value (ACV). If depreciation seems excessive or arbitrary, demand a review.
5. Submit a Supplemental Claim
If you discover more damage or receive a better estimate, you may be able to file a supplemental claim — even after an initial offer has been made.
6. Put Everything in Writing
Keep a written record of all communications, estimates, photos, and reports. This creates a timeline and evidence in case you need legal help.
7. Talk to an Attorney
If you’re still getting the runaround or feel overwhelmed, it may be time to bring in a legal team. We can evaluate the offer, challenge the insurer, and file suit if needed for breach of contract.
🏛️ You Have Legal Rights Under Tennessee Law
If your insurance company makes a lowball offer and refuses to negotiate fairly, they may be breaching their contract with you. Under Tennessee law, you have the right to:
- Dispute undervalued claims
- Enforce your replacement cost benefits
- Reopen improperly closed claims
- Pursue breach of contract damages — and in some cases, bad faith penalties
⚖️ Final Thought: Don’t Settle for Less Than What You’re Owed
Your insurance policy is a contract — and you’ve held up your end by paying premiums. The insurance company must do the same by paying for all covered damage, at a fair value.
If you’ve received a lowball offer, don’t go it alone. At The Insurance Law Firm, we help Tennessee policyholders fight back against undervalued claims and force insurers to honor their promises.
Call us today for a free consultation. We don’t get paid unless you do.
