What is the Insurance Company’s Nuisance Value of a Case?

Categories: Insurance

calculating value of case

Insurance companies are businesses; therefore, they are extremely cautious when it comes to determining settlement value in a case. Sometimes, the nuisance value of a settlement enters into play, especially when there are multi-million-dollar settlements on the table.

What is the Nuisance Value?

Insurance claims adjusters might think that a claim is worth nothing, but sometimes they consider that claim to be a “nuisance.” A nuisance claim designation comes for various reasons, but sometimes the adjuster will name a claim as a nuisance because:

  • The person making a claim is at fault
  • Someone other than the insured or the victim is at fault
  • The accident did not cause the claimant’s injuries
  • The plaintiff lied about their injuries or had no injuries at all

In these situations, an adjuster can deny a person’s claim, saying that they will not pay compensation.

Initial Denial Might Turn into a Settlement Offer

While an insurance claims adjuster will deny your claim initially, that does not mean they will not pay compensation. Often, the adjuster considers the nuisance value. This term comes from the insurance industry and indicates the amount of money that they should pay rather than deal with a long drawn-out claim.

The Misunderstanding of the Nuisance Value

Often people assume that a nuisance value means that the plaintiff was not injured and filed a false claim. However, the person may very well have been injured. It may be that the evidence was not robust enough to justify their claim, or their statements could have been too inconsistent during the initial phase – giving the insurer the impression that the claimant has lied or exaggerated their injuries (even if they have not).

What Would Insurance Companies Pay in a Nuisance Value-Type Case?

There is no fixed dollar amount or percentage with these types of cases. Just like other injury claims, it is hard to tell how much insurers would pay. If there is little to no evidence validating the claimant’s injuries, the settlement offer would be much less than a claimant that has at least some compelling proof of their injuries.

Often, the settlement is equal or half equal to the amount of medical costs. Furthermore, the insurer is unlikely to pay for lost wages, pain, and suffering or other general damages.

Speak with a Personal Injury Attorney Regarding Your Injury Case

If you have suffered a serious injury, do not worry about nuisance values or whether the insurance company will settle. Instead, speak with a personal injury advocate. Even when it appears you do not have enough evidence; our team can investigate and often gather evidence that helps you receive a higher settlement.

To get started, speak with an injury advocate from Hames, Anderson, Whitlow & O’Leary today for a no-obligation consultation. All discussions are confidential, even if you choose not to use our services. So, get started by scheduling your consultation at 509-586-7797 or request more information online.