Settling vs. Going to Court in Insurance Litigation: Pros and Cons

Insurance litigation disputes can be a headache. They’re stressful and confusing, often involving legalese and adjusting jargon. But in the end, there are only two options: settle or file suit. If you’re considering doing either, you must understand each option to make an informed decision about what’s best for your case.

Settling vs. Going to Court

If you are considering settling your insurance claim, it is essential to understand the advantages of settlement and how it differs from litigation. Payments can be negotiated by the parties or by a mediator, and they often take place outside of court, which means there is no need for you or your lawyer to appear in front of a judge or jury at any point during the process. Also, settlements may be confidential; they do not become part of public records unless both sides agree to make them so

The Unforeseen Consequences of Litigation

There are other disadvantages to litigation. In addition to the emotional toll, it can be time-consuming and expensive. You’ll need to hire an attorney specializing in insurance law and your case type (such as such as residential property, commercial property, maritime, or aviation), which will cost you money in the form of a percentage of the recovery. And even if you win your case, there’s no guarantee that the defendant will pay what they owe—as they may appeal, extending the litigation for months to years.

This means that even if you win your case and get everything covered by insurance awarded, there’s still no guarantee of prompt payment.

The Costs of Litigation

Coquina Law Group handles insurance litigation on contingency contracts, meaning you do not pay the cost upfront and do not owe the cost if we do not prevail. However, there is a non-financial cost associated with the time and energy you will have to invest in the case, which may be more than you expected. And if your issue is not resolved quickly (or at all), it could stress both parties and their families or employers. The stress is not only your time with attorneys, depositions, trial, etc., but also lost time on not making repairs you could have with settlement funds.

What’s Your Insurance Claim Worth?

The first step in determining the value of an insurance claim in dispute is to determine what damages the policy covers. Suppose you have a homeowner’s policy, for example, that covers wind damage to your home and its contents and but the home also has damage from a flood.   In that case, you need to know whether or not wind has damaged those things or was caused by flood or both. These damages have to be sorted out.  Maybe your public adjuster has prepared an estimate that is in excess of $100,000. However, the actual cost is only $75,000 or even less.   An honest review of your claim with real-world numbers allows you to make an informed decision as to settle the claim pre-suit or move forward with filing a lawsuit or going to trial.

If You Have an Insurance Dispute, it May Be Time to Reach Out to Coquina Law Group

You may be able to resolve your insurance dispute on your own, but it’s always a good idea to consult with an attorney before making any decisions. An experienced lawyer can give you unbiased advice about what steps are best for you and help ensure that no important details get overlooked or ignored throughout the process.  Our goal is to get you made whole as quickly as possible.  We will advise you if feel that we can help you and add value to your claim.

Our lawyers are ready to help you understand the pros and cons of going to court and how much money your insurance policy may be worth. If you have any questions about your case, please don’t hesitate to contact us today!