When to Use This Template
An appeal letter is your first formal response when your insurance company has denied your claim or offered less than you believe you're owed. Unlike a bad faith demand letter, an appeal is part of the normal claims process and gives the insurer a chance to reconsider their decision.
Claim Denial
Your claim was denied entirely, and you believe it should be covered under your policy.
Partial Denial
Some portions of your claim were denied while others were approved.
Underpayment
The settlement offer is significantly below the actual value of your loss.
Coverage Dispute
The insurer claims your loss isn't covered, but you believe it is.
Use an appeal letter first to give the insurer a chance to correct their decision through normal channels. If the appeal is denied and you believe the insurer acted in bad faith, then consider sending a demand letter. Appeals are less adversarial and often more effective for straightforward disputes.
California insurers must respond to your appeal within specific timeframes. Under Cal. Code Regs. tit. 10, Section 2695.7, insurers generally have 40 days from receiving your proof of claim to accept or deny it. For health insurance appeals, California has additional protections:
- Internal appeals must be decided within 30 days (5 days for urgent cases)
- You have the right to request an Independent Medical Review (IMR) for health claims
- The California Department of Insurance can intervene if the insurer violates regulations
The Template
Copy this template and replace all bracketed placeholders with your specific information. Customize the middle sections based on your specific denial reason and evidence.
Customization Tips
Address the Specific Denial Reason
Don't just generally argue that you should be covered. Read the denial letter carefully and address their specific stated reason. If they cite an exclusion, explain why it doesn't apply. If they question the value, provide competing evidence.
Quote Your Policy
Find the specific policy language that supports your position and quote it directly. Reference the page number. Insurance companies sometimes deny claims hoping policyholders won't read the actual policy language.
Organize Your Evidence
Number your enclosures and reference them by number in your letter. Make it easy for the reviewer to find and review your supporting documents. Consider creating a summary table if you have many items to dispute.
If your initial claim lacked documentation, use the appeal as an opportunity to strengthen your case. Get additional estimates, expert opinions, photographs, or other evidence that wasn't included originally. New evidence can change the outcome.
What to Include vs. Exclude
Include
- The exact denial reason quoted from their letter
- Specific policy language supporting coverage
- Point-by-point rebuttal of their reasoning
- All relevant supporting documentation
- Specific dollar amounts with backup
- Clear statement of what you're requesting
- Deadline for response
Exclude
- Accusations of bad faith (save for demand letter if needed)
- Emotional pleas or stories unrelated to coverage
- Threats (keep tone professional and factual)
- Admissions that could hurt your case
- Irrelevant information that clutters the appeal
Most insurance policies and state laws have deadlines for filing appeals. Check your denial letter and policy for any stated deadline. If you miss the appeal window, you may lose important rights. For health insurance, federal law (ERISA) and state laws often have strict timelines. Don't wait until the last minute.
After You Send
- Track your deadline. Note when you sent the letter and when you expect a response.
- Follow up if needed. If you don't receive acknowledgment within 2 weeks, call to confirm receipt.
- Document everything. Keep records of all communications, including phone calls (note date, time, who you spoke with, what was said).
- Know your next steps. If the appeal is denied, consider: requesting a supervisor review, filing a DOI complaint, sending a bad faith demand letter, or consulting with an attorney.
Need Help With Your Appeal?
A well-crafted appeal can make the difference between a denied claim and a successful outcome. I can review your denial, analyze your policy, and draft a compelling appeal tailored to your specific situation.