Short Answer

Yes. In North Carolina you can negotiate a diminished value (DV) claim directly with the adjuster. But if you have an attorney for the DV portion, send a letter of representation to the insurer and route all DV communications through your lawyer. DV is part of the property-damage claim; if talks stall, you can file a civil case before the deadline.

Understanding the Problem

You want to know if you can speak with the insurance adjuster about a diminished value settlement when an attorney is representing you for the DV portion. This is a North Carolina auto property-damage issue. The key step is whether you (or your attorney) should communicate after the insurer receives a DV-specific letter of representation tied to the existing claim number.

Apply the Law

Under North Carolina law, a claimant may communicate with the insurer about property damage, including diminished value. Once the insurer receives a clear letter of representation for the DV portion, it should direct DV communications to your attorney. Diminished value means the difference between your vehicle’s pre-loss value and its value after proper repairs. If negotiation fails, money-damages claims are pursued in the trial courts; the Clerk of Superior Court does not decide damage awards. The main deadline to preserve a DV claim by lawsuit is generally three years from the crash.

Key Requirements

• Liability and coverage: DV is a recognized component of property damage in North Carolina; it is commonly pursued against the at-fault driver’s liability insurer.
• Proof of loss: Support the claim with repair records, photos, market data, and a DV appraisal that ties loss in value to the collision.
• Letter of representation (LOR): Send an LOR that identifies the claim number, date of loss, client, and that representation is for the DV portion; ask the insurer to route all DV communications to counsel.
• Negotiation channel: Use the insurer’s designated claim email, online portal, or mailing address and request written acknowledgment and a single point of contact.
• Deadline to sue: A civil action for property damage (including DV) generally must be filed within three years of the crash date.

What the Statutes Say

• North Carolina Gen. Stat. § 1-52 (Three-year limitations) – Sets the general three-year deadline for property-damage claims.
• North Carolina Gen. Stat. § 58-63-15 (Unfair claim settlement practices) – Lists standards insurers must follow in handling claims.
• North Carolina Gen. Stat. § 20-279.21 (Auto liability coverage) – Describes required auto liability coverage for property damage claims.

Analysis

Apply the Rule to the Facts: Because your firm already represents the client on the diminished value portion and there is an active claim number, send a DV-specific letter of representation to the insurer’s claims address or portal. Ask the insurer to acknowledge the LOR in writing and to direct all DV communications to counsel. Provide a DV appraisal and repair documentation to move negotiations forward. If the insurer stalls or won’t engage, consider filing a civil action before the three-year deadline.

Process & Timing

1. Who files: The client’s attorney. Where: Submit the DV letter of representation to the insurer’s claims email, portal, or mailing address listed in the claim correspondence. What: DV letter of representation identifying the claim number, date of loss, client, scope (DV only), and a request that all DV communications go to counsel; include repair records and any DV appraisal. When: Send promptly and request written acknowledgment within 10 business days.
2. Insurer assigns or confirms the handling adjuster. Provide any additional documentation the adjuster requests. Typical DV review cycles can take a few weeks; company procedures vary.
3. Negotiate and, if resolved, confirm terms in writing and obtain a release limited to property damage/diminished value. If unresolved, file a civil action in the appropriate trial court before the three-year statute of limitations expires.

Exceptions & Pitfalls

• First-party DV under your own policy may depend on policy language; some policies exclude DV. Third-party DV against the at-fault driver’s insurer is more common.
• Send the LOR to the correct claims channel and confirm receipt; if misrouted, the adjuster may keep contacting the client directly.
• Do not sign a global release that waives DV unless that is your intent; ask for a property damage–only or DV-limited release.
• Weak documentation leads to low offers; invest in a credible DV appraisal and organize repair records and photos.
• Negotiations do not pause the filing deadline; track the three-year statute and be prepared to file suit if needed.

Talk to a Other Legal Matters Attorney

If you’re dealing with a diminished value dispute and need to get your letter of representation to the right place, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at [919-341-7055].

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.