What it means
A reservation-of-rights letter tells you the carrier is handling your claim provisionally but might deny coverage later based on policy language, investigation findings, or alleged misrepresentation.
When you receive one
- Read it carefully: identify exactly which coverage is being questioned
- Respond in writing within any deadlines
- Do not provide statements or sign documents without understanding the reservation
- Consider retaining a public adjuster or attorney
What to watch for
Carriers sometimes use reservation-of-rights letters to set up a later denial. The letter is not a denial, but it's an early warning sign that coverage is contested.