What to Do if the Insurance Company Delays Your Settlement
The following article is provided by Solum Space Law, APC for general information only and should not be taken as legal advice. Every case is unique—if you have questions about protecting your rights after an injury in Southern California, call our office for a free consultation.
When you experience an accident, property damage, or another unexpected loss, insurance is supposed to provide peace of mind. You submit your claim, send in documents, and expect timely communication. But sometimes weeks—or even months—might pass with little movement. Messages may go unanswered, and updates could feel vague.
If this sounds familiar, you’re not alone. Many people encounter delays that could feel unclear or frustrating. Some delays might stem from legitimate reasons, while others could happen because insurers are trying to minimize payouts or wait for claimants to lose momentum.
While every situation is different, there are general standards that may require insurers to handle claims fairly. Understanding why delays might happen—and what options you could have—may help you navigate the process more confidently.
Why Insurance Companies Might Delay Claims
Not every delay signals improper behavior. Some claims might genuinely require more time, such as reviewing medical records, assessing damage estimates, or clarifying coverage. However, certain patterns could raise concerns if they persist.
Common signs might include:
Repeated requests for documents you’ve already provided
Vague explanations like “we need more time” without details
Adjusters changing frequently, causing restarts in communication
Small partial payments while the rest of the claim remains pending
Long periods of silence followed by generic updates
These patterns might create significant stress, especially when expenses continue.
Fair Claims Handling and Communication
In general, insurance companies are expected to respond within a reasonable period and provide ongoing updates. Timelines may vary, but insurers typically should communicate clearly once they have the necessary documents.
If communication stalls or delays seem unusual, it might be helpful to speak with an attorney to better understand what your rights could be under your specific policy and circumstances.
This is not legal advice; it is general information about how claims are often expected to be handled.
Example: A Delayed Homeowners Claim
Imagine experiencing water damage in your home due to a burst pipe. You file your claim, provide photos, and send estimates. Weeks go by with minimal updates. A month later, you still don’t have a clear answer.
While each situation is unique, prolonged silence or repeated postponements might raise questions. Consulting an attorney in scenarios like this could help you understand what steps might be available to encourage more timely communication.
How a Lawyer Might Help When a Claim Is Delayed
When an insurance claim seems stalled, it can be difficult to know what to do next. An attorney may be able to make the process clearer and assist with several key steps.
Reviewing Your Policy and Claim File
A lawyer might review your policy, claim documents, and communication history to identify possible reasons for the delay.
Communicating with the Insurer
Your attorney could contact the insurer on your behalf, helping ensure questions are answered and correspondence is documented.
Establishing Reasonable Timelines
Lawyers may send formal letters requesting updates and setting expectations for when responses might occur.
Organizing and Preserving Documentation
Attorneys often help clients organize emails, letters, and records, which could be useful if the matter escalates.
Filing a Complaint or Legal Action, If Appropriate
If delays persist and appear unjustified, a lawyer might recommend filing a complaint or, in certain cases, pursuing legal action. What makes sense would depend entirely on the facts of your situation.
Having representation may signal to insurers that the matter is being taken seriously, which could help encourage more timely handling.
Understanding Possible “Bad Faith” Insurance Issues
A “bad faith” claim might arise when an insurer fails to act reasonably or fairly in handling a valid claim. Examples could include:
Unreasonable or unexplained delays
Denying coverage without proper investigation
Misrepresenting policy terms
Offering settlements that might seem unreasonably low
If a bad faith claim succeeds, compensation might include the original amount owed, interest, attorney fees, and in rare situations, additional damages. What may or may not apply depends entirely on the facts.
Frequently Asked Questions
What if I accepted a smaller settlement already?
It may depend on the agreement you signed. A lawyer could review the terms to see if anything appears unclear or potentially problematic.
How long can an insurance company delay payment?
There isn’t one universal timeline. However, long delays without meaningful communication might raise concerns about fair handling.
What kind of documentation could help?
Emails, letters, call logs, and written notes might all help establish a pattern if delays continue.
How Solum Space Law Might Help
At Solum Space Law, we understand that insurance delays could create significant financial stress and uncertainty. Our team works with Californians who may be dealing with claim delays, underpayments, or unclear communication.
Here’s how we might assist:
Policy & File Review: We could examine your claim and identify potential issues.
Direct Communication: We may contact your insurer to help encourage timely updates.
Timeline Management: We might establish expectations for responses and escalate when necessary.
Legal Action (if appropriate): In certain cases, we could explore whether formal action may help recover what might be owed.
You do not have to navigate the process alone. If you believe your claim is being delayed, our team is available to review your situation and help you understand what options might be available.
This blog is attorney advertising. The material below is presented by Solum Space Law, APC for educational purposes only and is not a substitute for tailored legal advice. Cases are fact-specific; if you have questions about the value of your claim, contact us for a complimentary consultation.
