
Q: I received a “reservation of rights” letter from the insurance company. What is it?
A: Don’t be intimated by the insurance company’s letter. This letter is designed to protect the insurance company and is supposed to inform you that your claim is being investigated, but the insurer is reserving the right to not pay you if the accident is not covered under the policy.
Basically the “reservation of rights” letter is letting you know that although the insurance company is processing your claim, some losses may not be covered. It allows the insurance company to reserve its right to deny coverage at a later date based on the details of your policy. The insurance company may not be obligated to pay the damages.
This letter also prohibits you from claiming that the policy covers the accident, simply because the insurance company started negotiating a settlement with you.

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Manhattan
733 3rd Avenue,
12th Floor
New York, NY 10017
Toll Free: 800.734.9445
Long Island
1355 Motor Parkway
Hauppauge, NY 11749
Toll Free: 800.734.9445