What is a demand letter?
A demand letter is a written request asking the person who caused your injury, or their insurer, to pay a specific amount to settle your claim, with the facts, injuries and bills that support it. California's courts describe it as a letter that formally requests the money you are owed. It usually opens settlement talks.
Last checked November 9, 2026 · Official sources (3)
What goes in an injury demand letter? An example
Example: a dog bite left you with stitches and two months of wound care. Your demand letter to the owner's homeowners insurer might include:
- What happened, when and where, with photos of the injury and the dog.
- Your treatment, with medical records and bills totaling, say, $7,500.
- Lost pay of $1,200, with a note from your employer.
- How the injury affected daily life, such as missed work trips and fear around dogs.
- The amount you ask for, say $25,000, and a date to respond.
These numbers are made up. The amount in a demand is an opening position, not a prediction.
Why does the demand letter matter to someone who was hurt?
It frames the whole negotiation. Everything you want counted should be in it, because adjusters respond to what is documented. Sending it before treatment ends can leave future costs out, so many people wait until the long-term picture is clearer, while keeping an eye on the filing deadline.
Outside injury claims, demand letters are a standard first step. California's courts say asking for the money is a step you must take before filing a small claims case.
Does a demand letter have legal effect in Texas?
It can. Under the Texas Stowers doctrine, an insurer's duty arises when the claim is covered, the settlement demand is within policy limits, and the terms are such that an ordinarily prudent insurer would accept it. A clear, well-supported demand within the policy limits can matter later if the insurer refuses and a judgment exceeds the limits.
We did not find an Arizona rule giving a demand letter a similar effect to cite here.
Demand letter vs. Medicare demand letter
Your demand letter asks the other side to pay you. A Medicare demand letter goes the other way: it is Medicare telling you how much to repay from your settlement. If no response is received in 30 calendar days, Medicare issues its demand without any reduction for fees or costs.
Questions
How much should I ask for in a demand letter?
There is no set formula. The amount should be backed by your bills, lost pay and evidence of how the injury changed your life.
How long does an insurer have to answer a demand letter?
It depends on your state and the letter. Many demands set a reasonable response date, and Texas Stowers demands are judged partly on their terms.
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See if I’m owed moneySources (3)
- California Courts Self Help Guide, checked 2026-11-09. “This program will help you write a letter that formally requests the money you are owed. This is called a Demand Letter . This is a step you must take before filing a small claims court case.”
- In re Farmers Texas County Mutual Insurance Co. (Tex. 2021), checked 2026-11-09. “The duty arises when (1) the third party's claim against the insured is within the scope of coverage; (2) the settlement demand is within policy limits”
- Centers for Medicare & Medicaid Services, checked 2026-11-09. “If a response is not received in 30 calendar days, a demand letter will automatically be issued without any reduction for fees or costs.”