Supplement (Claim Supplement)

Definition

A claim supplement (or supplemental claim) is an additional request for payment submitted to an insurance company after an initial claim settlement has been made, covering damages or expenses that were not included in the original estimate. Supplements arise frequently in property claims when hidden damage is discovered during repairs—such as water infiltration behind walls revealed only after demolition begins—or when material and labor costs increase between the estimate date and actual repair. In auto claims, supplements are common when a repair shop discovers additional damage after disassembly that was not visible in the initial estimate. Most insurers have a defined supplement submission process, often requiring documentation such as a revised Xactimate estimate, photos of the newly discovered damage, and contractor notes. Supplements must typically be submitted within the policy's statute of limitations period—which can be as short as one year in some states for property claims. Public adjusters regularly identify and submit supplements on behalf of policyholders who accept initial low-ball settlements without fully quantifying the scope of loss. Insurers cannot unreasonably deny legitimate supplements, and doing so may constitute bad faith.

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