Reservation Of Rights Letter

A water buffalo mistakes your car for its Tinder date. Needless to say, the whole backside of your vehicle is wrecked. However, the insurance company wants to investigate before it issues money to cover your claim. Your description of a lovelorn water buffalo struck your insurance adjuster as...suspicious. Besides, they've got to check the fine print about bovid attacks.

As such, you receive a reservation of rights letter. The document indicates that the insurance company is holding off on sending you a check until it looks into your claim. The right being reserved is the insurance company's right to deny or limit your claim. As of now, the letter basically says that things are still pending.

The letter represents the insurance-speak equivalent of “Hold on there, buster...we’ve got to look into this.”