Insurance mediation is a form of Alternative Dispute Resolution (ADR) that uses a neutral, third-party mediator to help both parties in conflict arrive at a mutually beneficial conclusion. In this process, the mediator encourages open communication and provides each party with an opportunity to be heard.

Insurance disputes are typically due to payouts for claims. These claims can be related to anything from a car accident to damage caused by weather or fire, or even health-related issues. Alternative dispute resolution is not only more affordable and productive than litigation, but it also typically gives way to settlement conditions that are beneficial to both sides. More individuals end up content with the results of mediation than those who experience litigation, particularly in issues connected to insurance disagreements.

The following disputes are typically resolved through mediation::

1. Claims that arise under a homeowners’ insurance policy and involve loss due to a fire.

2. Claims that arise under a policy covering damage due to heavy storms such as hurricanes.

3. Claims that arise under automobile collision coverage or automobile physical damage coverage.

It is important to keep in mind that there are some instances where insurance mediation will not be possible, such as with cases involving the actions of an agent or broker, or if either party is accused of fraud. In these situations, arbitration or litigation must be used instead.