Totaled BMW - Insurance Appraisal > Payoff

[chrishs2000]

Customer Car Totaled.... Insurance Claim higher than payoff

I had a customer just lease a BMW from me last month, unfortunately, it flooded and was totaled out. I made sure to tell the customer to tell the insurance company that the value is higher than the payoff. His payoff is 37k (don’t know if this includes tax or not). Insurance valued the car at 40.3k. However, Insurance is refusing to pay him the difference and wants to deal with BMW directly in just paying the 37k. Is there any way for him to get the difference?