Purpose
A closing letter formally notifies the insured or claimant that the claim has been resolved and the file is being closed. It serves as a final record of the outcome and preserves the carrier's documentation trail.
When to Send
The closing letter is sent after all payments have been issued, all disputes have been resolved (or the appeal period has expired), and the carrier considers the claim fully handled.
Required Components
Resolution Summary
State how the claim was resolved: paid in full, paid in part, denied, withdrawn by the insured, or settled by agreement.
Payment Summary
If payments were made, summarize the total amount paid, the coverages under which payment was made, and any remaining recoverable depreciation (for property claims with replacement cost coverage).
Remaining Rights
If the insured has remaining rights (e.g., recoverable depreciation, supplemental claims for undiscovered damage), explain those rights clearly, including any deadlines.
Reopening Instructions
Explain whether and how the insured can request the claim be reopened if new information emerges or additional damage is discovered.
California wildfire smoke qualification: For claims within the January 1, 2027 scope and operative-date rule, new Insurance Code §2060.2(f) treats recontamination after preloss restoration and clearance for human occupancy under the applicable standards as a new claim, subject to policy provisions and a new deductible. It is not reopening of the prior claim. Check the California smoke-damage guidance and chaptered AB 1795 before using this language. Do not use it to bar supplements for incomplete restoration, newly discovered original damage, or older claims automatically. Record restoration and clearance evidence and assess remaining ALE and payment obligations before closure.
Contact Information
Provide a point of contact for post-closing questions.
Jurisdiction Notes
California — Kumar
A clear final adjustment and closure communication can end equitable tolling even when a partial payment was made. Calculate the remaining contractual suit period and preserve required warnings; later submissions do not automatically restart tolling. See Kumar and its limits.
Ohio — appraisal awards
Explain what a binding award resolved. One Church requires particularized fraud or manifest-mistake allegations to challenge an award; it does not create a blanket bar to every supplement. See the appraisal and closure guidance.
Georgia — policies from July 2027
Before stating a contractual suit deadline, check whether §33-24-59.37’s minimum two-year period applies to the first-party property portion of the policy. See the policy-date trigger and exemptions.
Adjuster Guidance
- Confirm all payments have cleared before sending the closing letter
- Include a complete payment history or summary
- For property claims, explicitly address recoverable depreciation deadlines
- Do not close a claim prematurely if the insured has indicated an intent to supplement
- Retain proof of delivery of the closing letter in the claim file
