Why Do Insurance Companies Drag Out Settlements?
When your home or business suffers serious property damage, you expect your insurance company to respond quickly. Unfortunately, many insurers use delay tactics to drag out settlements, causing financial strain, confusion, and unnecessary hardship. Knowing why insurance companies delay claims—and how to fight back—can help you protect your rights and recover what you’re owed.
Reasons Insurance Companies Drag out Settlements
Reduce Payout Amounts: Policyholders facing financial pressure are more likely to accept lowball settlements.
Hold Onto Funds Longer: Delaying payments lets insurers earn interest or investment gains on unpaid claim money.
Discourage Claims: Some delays are designed to frustrate you into giving up your claim.
Common Insurance Delay Tactics in Michigan
Insurers often rely on repeatable delay strategies to wear policyholders down and minimize payouts. Recognizing these tactics early is essential to protecting your claim and holding the insurer accountable.
Repeated Documentation Requests: Insurers may ask for the same documents multiple times to create confusion and stall progress.
Unnecessary Investigations: Simple claims may be subjected to prolonged inquiries, adding delays and frustration.
Lowball Valuations: Insurers may significantly undervalue your damages, forcing lengthy negotiations to receive fair compensation.
Vague or Conflicting Communication: Providing unclear or shifting information causes delays and undermines trust in the process.
Your Legal Rights Under Michigan Insurance Law
Michigan law requires insurance companies to handle claims in good faith. If your insurer delays your settlement without justification, you may have strong legal remedies. These include:
Breach of Contract: If your insurance company fails to meet the terms of your policy, you may file a lawsuit for delayed or underpaid benefits.
Penalty Interest and Attorney Fees: Michigan law may entitle you to interest and legal fees if your insurer delays a valid claim without reasonable cause.
Bad Faith Claims: When delay tactics are egregious or deliberate, you may pursue additional legal remedies for insurer misconduct.
How to Fight Back Against Insurance Settlement Delays
Insurance delays are rarely simple — and every misstep can cost you. The most important step you can take is to involve an experienced Michigan property insurance attorney as early as possible.
At Fabian, Sklar, King & Liss, we handle these delays every day. We’ll organize the claim, demand written justifications, and stop insurers from pressuring you into an unfair settlement. Our legal team ensures that every communication, every document, and every negotiation works in your favor — not theirs.
Don’t navigate this alone. Let us take immediate, strategic action on your behalf.
Don’t Let Insurance Delays Cost You. Take Action Now.
If your insurer is dragging out your claim settlement, you need experienced legal advocacy now. At Fabian, Sklar, King & Liss, we hold insurance companies accountable and recover the full compensation our clients are owed.
Call 248-553-2000 today for a complimentary, confidential consultation. Let our team take immediate steps to protect your rights and resolve your claim.
