Settlement
Definition
The amount an insurance company pays to resolve a claim. Settlements can be negotiated between the policyholder and the insurer. If you disagree with a settlement offer, you have the right to dispute it through your state's appraisal process, department of insurance complaint, or legal action.
When This Matters
The insurer offers $12,000 to settle your water damage claim. After providing additional documentation and contractor estimates, you negotiate the settlement up to $18,500.
Related Terms
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