A letter from your insurer saying they'll investigate your claim but may not cover it.
A reservation of rights (ROR) letter means the insurer is defending or investigating your claim but reserves the right to deny coverage later if they find it falls outside the policy. It's not a denial—it's a "we're looking into it."
Not necessarily. A reservation of rights (ROR) letter is not a denial—it means your insurer is defending or investigating your claim while preserving the right to deny coverage later if it turns out to fall outside the policy. It signals there is a coverage question to resolve, but many claims proceed to full coverage after an ROR. It is standard practice, not a red flag on its own.
Read it carefully to understand which coverage issues the insurer is flagging, and share it with your broker immediately. Because an ROR means the insurer may ultimately deny coverage, you may want independent legal advice—in some situations a reservation of rights can entitle you to select your own defense counsel (sometimes called "independent" or "Cumis" counsel). Do not ignore it, and keep documenting the claim.
Yes. That is the purpose of the letter—it preserves the insurer's right to deny coverage later based on the specific policy issues it identified, even while it defends or investigates. However, the insurer must act in good faith and can generally only deny on the grounds it reserved. If coverage is denied, you and your broker can challenge the decision or pursue the disputed grounds.
Definitions are educational and may be modified by your specific policy language, endorsements, and state rules. For regulatory guidance, refer to the California Department of Insurance or the NAIC.
Last updated: July 2026.