The insurance company sent me a “reservation of rights” letter. What does it mean?

Often, an injured victim will receive a reservation of rights letter shortly after filing an insurance claim. This letter informs you that the company is investigating your claim, but that it is reserving its right not to pay you anything if it turns out that the accident was not covered under the policy. The insurance company must still thoroughly investigate your claim and negotiate with you fairly. The letter simply protects the insurance company by preventing you from claiming that the company must cover your damages just because it began investigating your claim.

Posted in: Insurance Settlements FAQs