You and your insurer do not see eye to eye on your property claim. You believe your insurance company is lowballing damages to your Florida home. Then your insurer offers a solution: go to mediation to help resolve your dispute. While neutral mediators can help disagreeing parties arrive at a solution, you should be careful about agreeing to mediation to handle an insurance claim, as there are some drawbacks.
First, per Nerdwallet, mediation does not guarantee a solution. Unlike other forms of resolution, like arbitration or a court proceeding, a mediator is not empowered to enforce a solution on the disputing parties. So you may go through the process of trying to work out your dispute through the mediation process only for no solution to be reached at all, putting you back where you started from.
The terms of your mediation, should you choose to go this route, may be dictated by your policy. Some insurance policies mandate that the insurance company pay for the mediation. If this is not the case, you will likely have to split the cost of mediating your dispute with your insurance company. This means if your mediation does not solve your dispute, you are out of the money used for the mediation.
Policyholders should also be aware that insurers may favor mediation because they believe it gives them an advantage. The representative for the insurance company is likely to have been trained in the mediation process, while many policyholders will not have had any experience in mediation. This is why some people choose to have an attorney assist them in mediation.
Another problem is that the insurer may not be sincere in using mediation to solve your dispute. Instead, your insurer may take the opportunity of the mediation to decide just how strong your case is. If the insurer concludes, after all the facts have been presented, that you have a weak hand, you may get no resolution to your dispute at all, and your money and time has been spent for nothing.
Even methods of resolution that could settle your dispute, such as mediation, might not work out in the way you hope, and you could end up with less than you want. If you suspect your insurer is employing dubious tactics to get you to settle for an unfair amount, considering asking an experienced attorney for assistance. Keep in mind that this article is written to inform you about bad faith insurance tactics and does not provide legal advice.