By Eli Goins · FL DFS #P159790 · Reviewed: · 1 min read
Short answer: A coverage letter is your insurer's formal written position on whether a specific loss is covered. It may affirm coverage, deny it with cited policy language, or reserve rights pending investigation. Read it carefully: identify the exact policy language cited, check the stated facts against your own record, and note any deadlines. Respond in writing, not by phone.
Three common types
- Affirmation: coverage confirmed, claim moves to valuation
- Reservation of rights: carrier investigating, not waiving defenses
- Denial: specific policy language cited to exclude
How to read one
- Identify the specific policy language cited
- Check the facts cited against your own record
- Note deadlines (time-to-respond, time-to-sue)
Your response
If the position is wrong, respond in writing with facts and documentation. Do not rely on phone calls.