If you’ve just received a Reservation of Rights letter from your insurance company, don’t panic — this isn’t a denial of your claim. It’s simply a formal notice that your insurer is still investigating the situation and wants to keep all of its options open while doing so. In other words, it’s a way for the insurance company to say, “We’re looking into this, but we’re not committing to coverage just yet.”

The reason they send this letter is to preserve their rights under the policy. It gives them time to gather all the facts and determine whether your claim is fully, partially, or not covered at all — without accidentally implying coverage too soon. Some insurance companies ask you to sign and return the letter, while others do not. Either way, receiving one doesn’t mean you’ve done anything wrong or that your claim will be denied — it just means they’re still reviewing the details.

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