Business and Residential Property Damage Insurance Claim Lawsuit in Mississippi
Property damage from hurricanes, floods, tornadoes, windstorms, and fires can leave homeowners and businesses facing significant financial and emotional burdens. When you file a property insurance claim, you expect your insurance company to honor the policy agreement and pay the full amount necessary to rebuild and recover. Unfortunately, insurers often offer lowball settlements that fail to cover the full extent of damages.
At Barrett Law, PLLC, we have seen countless Mississippi property owners struggle with unfair insurance claim practices. Jonathan Barrett, an experienced Mississippi property insurance claim attorney, fights aggressively for policyholders whose claims have been underpaid, delayed, or wrongfully denied. If your insurance company has offered a settlement that is too low, you have legal options to challenge their decision and pursue the full compensation you are owed.
Why Do Insurance Companies Offer Low Settlements?
Insurance companies aim to minimize payouts to protect their bottom line. Offering low settlements is a common tactic used to pressure policyholders into accepting less than they deserve. Some of the most common reasons insurers underpay property damage claims include:
- Disputing the Cause of the Damage – Insurers may argue that pre-existing conditions, lack of maintenance, or policy exclusions are responsible.
- Undervaluing Repairs – Insurance companies often use biased adjusters or low-cost estimates to reduce the claim amount.
- Depreciating Property Value – Instead of paying full replacement costs, insurers may apply excessive depreciation to lower the payout.
- Blaming Homeowners or Businesses – Insurers may wrongfully accuse property owners of negligence to justify reducing the claim.
- Delaying the Claims Process – Repeated document requests and slow claim processing can force property owners to accept a lower offer out of frustration.
Mississippi policyholders should never accept the first settlement offer without reviewing whether it fully covers their losses. If you believe your offer is too low, you have the right to challenge it.
Steps to Take If Your Property Damage Insurance Settlement Is Too Low
1. Review Your Insurance Policy
The first step is to carefully review your policy to understand what coverage you are entitled to. Key areas to check include:
- Structural damage coverage (homes, businesses, rental properties).
- Personal property coverage (furniture, appliances, inventory, electronics).
- Additional living expenses (ALE) (hotel stays, temporary housing).
- Business interruption coverage (lost revenue due to property damage).
- Debris removal and cleanup coverage.
Compare your coverage limits to the amount offered by your insurer to determine if they are acting fairly.
2. Request a Detailed Explanation for the Low Offer
Mississippi law requires insurers to provide a written explanation of their claim decisions. If your settlement is too low, demand a breakdown of how they arrived at the amount.
3. Document All Property Damage
A strongly documented claim can make it harder for an insurance company to lowball your payout. Gather the following evidence:
- Photos and videos of all damage immediately after the disaster.
- Independent contractor repair estimates to compare against the insurer’s figures.
- Receipts for temporary repairs (tarping, window boarding, or emergency clean-up).
- Lists of lost or damaged personal/business property, with receipts if possible.
4. Get an Independent Appraisal
Insurance adjusters work for the insurance company, not for you. Hiring a public adjuster or independent appraisercan provide an accurate assessment of your claim’s true value.
5. File a Formal Dispute
If you believe the settlement is unfair, you have the right to formally challenge the decision by:
- Requesting a second review of your claim with supporting evidence.
- Filing a complaint with the Mississippi Insurance Department.
- Invoking the policy’s appraisal clause (if applicable) to demand a fair reassessment.
6. Consult a Mississippi Property Insurance Claim Attorney
If your insurer refuses to negotiate fairly, an experienced property insurance lawyer can:
- Challenge claim denials and delays.
- Demand full payment of all covered damages.
- File a lawsuit against the insurance company for bad faith insurance practices.
At Barrett Law, PLLC, we ensure insurance companies honor their policies and pay what they owe to Mississippi property owners.
Legal Protections for Mississippi Property Owners Against Insurance Bad Faith
Mississippi law protects policyholders from unfair claim practices and insurance bad faith tactics.
Mississippi Property Insurance Laws & Consumer Protections
- Miss. Code Ann. § 83-5-45 – Prohibits unfair claim settlement practices, including unreasonable delays and lowball offers.
- Miss. Code Ann. § 83-9-5 – Requires insurers to act in good faith and pay valid claims promptly.
- Miss. Code Ann. § 75-24-5 – The Mississippi Consumer Protection Act protects policyholders from fraudulent or deceptive insurance practices.
Signs of Bad Faith Insurance Practices
Your insurance company may be acting in bad faith if they:
- Unreasonably delay your claim processing.
- Deny your claim without a valid reason.
- Offer an unreasonably low settlement amount.
- Ignore critical evidence that supports your claim.
- Refuse to communicate or provide policyholders with necessary documentation.
If you believe your insurer is acting in bad faith, an attorney can pursue legal action and demand additional compensation beyond your claim.
Frequently Asked Questions About Property Damage Claims in Mississippi
What should I do if my property insurance claim is denied?
Request a written explanation, collect evidence, and consult an attorney to dispute the denial.
Can I sue my insurance company for offering a low settlement?
Yes. If the insurer is acting in bad faith, you can file a lawsuit for unfair claim handling.
How long does my insurance company have to pay my property damage claim?
Mississippi law requires insurers to settle claims within a reasonable time, but many delay payments. If the delay is unreasonable, legal action may be necessary.
Can my insurer deny my claim due to pre-existing damage?
Only if they have proof the damage existed before the disaster. Insurers sometimes wrongfully use this excuse to avoid full payment.
What if my insurance adjuster undervalued my property damage?
You can hire an independent appraiser or public adjuster to provide a fair valuation.
Does Mississippi allow punitive damages in bad faith insurance lawsuits?
Yes. If an insurer acts with deliberate dishonesty, you may recover punitive damages beyond your original claim.
What expenses should my property insurance cover?
Your policy should pay for structural repairs, personal property replacement, temporary housing, and lost business income if applicable.
Can I negotiate my property insurance settlement?
Yes. Never accept a low offer without negotiation. Provide additional evidence and demand a fair payout.
Do I need a lawyer to dispute a low settlement?
Not always, but if the insurer refuses to negotiate fairly, an attorney can strengthen your case and escalate legal action.
What if my business suffered property damage?
Commercial property claims should include business interruption losses, which must be fully compensated by your insurer.
Denied or Underpaid on a Property Insurance Claim? Call Mississippi Property Insurance Claim Attorney Jonathan Barrett 24/7/365 at (601) 790-1505 for Your FREE Consultation
If your insurance company has offered a lowball settlement or wrongfully denied your claim, do not accept less than you deserve. Barrett Law, PLLC fights for Mississippi homeowners and businesses to recover full and fair compensation for hurricane, flood, tornado, wind, and fire damage claims.
Call (601) 790-1505 for a FREE consultation—available 24/7/365. We represent clients across Jackson, Gulfport, Hattiesburg, Biloxi, Southaven, Oxford, Tupelo, Meridian, and beyond.
