← Closing letters

Deductible Reimbursement Letter to Insured

Send toInsured
WhenThe recovery includes money owed to your insured

💡 When to use it

Send this letter to the insured when a recovery includes money owed back to them, usually their deductible or other out-of-pocket costs. It pairs with the standard closing letter to the client.

  • Write for the policyholder, not the adjuster. Most insureds have never heard the word subrogation. Explain it in one sentence.
  • Lead with the good news. Their money is coming back, and how much.
  • Explain a partial reimbursement plainly. If the case settled for less than the full claim in a pro rata state, tell them why they're getting a percentage, not the full deductible.
  • Say how and when the payment arrives, and who it's coming from, so they don't mistake the check for junk mail.
  • Never deduct the recovery fee from their share unless your service agreement specifically says so.

✉️ The letter

Fill in the boxes and the letter updates as you type. Anything you leave blank stays [in brackets]. What you type stays on your device. Free downloads and prints include a light Subrobuddy watermark.

[Insured's Name]
[Street Address]
[City, State ZIP]

[Today's Date]

RE: Your Deductible Reimbursement

Insurance Carrier: [Client Name]
Claim No.: [Client Claim Number]		Date of Loss: [Date of Loss]
Loss Location: [Loss Address]

Dear [Insured's Name]:

We have good news. [Your Company Name] handles recovery for [Client Name], your insurance carrier. After your insurance carrier paid your claim for the loss on [Date of Loss], our office pursued the party responsible for the damage to recover those costs. This process is called subrogation. We are pleased to let you know that our office was successful in recovering your out-of-pocket costs.

Your reimbursement

[Choose one]

Full reimbursement: You paid a $[Insured's Deductible] deductible on this claim. Because the recovery covered the full claim, you are being reimbursed the full $[Insured's Deductible].

Partial reimbursement: You paid a $[Insured's Deductible] deductible on this claim. This matter settled for less than the full amount claimed, which is common in these cases. Under the rules that apply in [Loss State], the recovery is shared between you and your insurance carrier in proportion to what each of you lost. We recovered [Recovery %]% of the total claim, so you are being reimbursed [Recovery %]% of your deductible, or $[Deductible Owed to Insured].

Item Amount
Deductible you paid $[Insured's Deductible]
Amount being returned to you $[Deductible Owed to Insured]

How you'll receive it

[A check for $[Deductible Owed to Insured] is enclosed. / A check for $[Deductible Owed to Insured] will be mailed to you by [Your Company Name or Client Name] within [number] business days.] The check will come from [Payer Name], so please watch for it in your mail.

There is nothing further you need to do, and your claim is now closed. If you have any questions about this reimbursement, please contact our office.

Sincerely,

[Name]
[Title]
[Company]
[Address]
[Phone] · [Email]