Insurance mediation helps to calm the waters during an insurance dispute and is often the quickest and most cost-effective course of action in handling a claim that needs resolution.  When emotions overwhelm a situation, disputes can quickly devolve into accusation of incompetence and unfairness, as well as threats of litigation.  This is especially true when a large-scale natural disaster strikes, leaving thousands of business owners, homeowners, property owners and vehicle owners demanding immediate attention from an insurance company. 

When this immediate attention and relief is not possible due to simple logistics, disputes can quickly arise, as adjusters scramble to get every claim in a reasonable amount of time. In addition to this, disputed claims, lower-than-expected payouts, and claim denials can quickly escalate into legal threats that could be easily resolved through insurance mediation.   

While different states have varying statues regarding what can and should be mediated in an insurance claim dispute, most states allow the following claims to enter the mediation process: 

Claims that arise under a homeowners' insurance policy and that involves loss due to a fire, flood or earthquake.

Claims that arise under automobile collision coverage or automobile damage coverage.

However, any claim involving fraud—either on behalf of the claimant or the insurance company—must be handled through the court system.  

In the process of insurance mediation, a neutral, third-party mediator will look at all contracts and evidence gathered and facilitate the parties involved in the dispute to a quick resolution.  Mediation allows greater empowerment to everyone who is a stakeholder in the dispute, and when conducted in the right way, allows everyone to reach a satisfactory conclusion without the hassle and cost of litigation.  Insurance mediators are legal experts in the field of insurance law and are trained to negotiate disputes and reframe the situation to ensure the best outcome for everyone involved.