That settlement offer might be a lowball. Here's how to tell.

A fast check in the mail feels like a win — until the contractor's bid comes in at double. Insurers know most people take the first offer. Here's how to recognize an underpayment and what to do instead of cashing it.

Signs your offer is too low

• It won't cover the repair. An independent contractor estimate is far higher than the offer.
• Whole line items are missing — code upgrades, debris removal, matching, overhead and profit, or sales tax.
• Heavy depreciation on an Actual Cash Value basis when your policy provides Replacement Cost.
• "Repair" where replacement is warranted — patching a roof slope that needs full replacement.
• The offer arrived suspiciously fast, before a thorough inspection.

Why it happens

Claims are a cost center. Every dollar not paid is a dollar kept, and the cheapest defensible number is often the first one offered. It's not always bad faith — sometimes it's an adjuster moving fast — but the result is the same: you're left short unless you push back.

How to fight a lowball

1. Get your own estimate from a licensed contractor for the full scope of repair.
2. Compare line by line against the insurer's estimate and flag what's missing or under-priced.
3. Request a re-inspection and submit your documentation in writing.
4. Bring in a public adjuster to re-document the loss and negotiate — they do this daily and typically work on contingency.

General information, not legal advice. Coverage and outcomes depend on your specific policy.