Legal Actions to Make When Your Insurance Claim is Denied

On average, homeowners in the US pay $1,200 a year to protect their homes and provide a little peace of mind, and there is nothing more frustrating than going through all the stages of a legitimate insurance claim, only to have it rejected. Your claim can be denied for a variety of reasons, but if you believe that you have been treated unjustly here are the legal actions to take when your insurance claim is denied:

Find Out Why Your Claim Was Denied

Try to find out why your claim was denied

Insurance claims can be denied for a variety of reasons and you must try and find out why this was the case with yours. It is a legal requirement for insurance companies to explain to you why they denied it, and if they are trying to palm you off, you must know your rights. Insurance companies are infamous for making it difficult to successfully claim, and you should not take them at their word that your claim was denied for valid reasons. Quite often, insurance companies simply do not want to pay out, and as these attorneys explained to us, some insurance companies will try to intimidate you, safe in the knowledge that many people will be wary of going up against the power and financial muscle of a huge organization. Know your rights and do not allow yourself to be bullied.

Hire experienced legal representation

Insurance policies are intentionally designed to be difficult for most people to understand, so hiring a specialized attorney or law firm to look into the details or your claim is always advantageous. Insurance companies are notorious for trying to underpay compensation or even to avoid paying anything, but an experienced law firm that specializes in insurance will be able to read through all the policy jargon and advise you what the best course of action is to take. They may be able to pressure your insurance company into settling, or if necessary, will represent you in an appeals court.

Prepare for an appeal

Before you file an appeal, your legal team will gather evidence that relates to your claim and proves definitively that it was denied unjustly. Make sure that you help your lawyers by providing them with as much evidence as you can to help them build your case. Write down the details of what happened while they are still fresh in your mind. Contemporaneous accounts complete with clear dates and descriptions of the incident are very compelling in court. Take photos of any damage incurred and get independent quotes on the value of the damage as your insurance company’s estimates may not be reliable. Provide receipts that show the steps you made to secure your home. If, for example, your home has been damaged in a fire, provide receipts for smoke alarms and emergency fire extinguishers you have installed. This will show that you took all reasonable and necessary steps to prevent an incident. The more information that your legal team has, the better chance they have of proving that your claim is valid and should not have been denied. Insurance claims can be worth hugely significant sums of money so it is vitally important that you are fully prepared.

File the Appeal

Have your lawyers file the appeal

If your lawyers agree that your claim was denied unfairly, then the final step to take is to have them file an appeal. The first appeal you could try to make is with the insurance company itself. If they see the extent that you are willing to fight, they may capitulate and make a payout under the terms of your policy. If not, you will need to take your insurance company to court. When in court, trust in your legal team to present the best possible case on your behalf and to expose the insurance company’s misactions. Quality legal representation is especially beneficial once you get to the appeal stage and any cost for their services will be more than mitigated by the compensation settlement they should be able to secure for you.

Filing a legitimate insurance claim and seeing it unjustifiably denied is extremely frustrating, but the most important thing is to stay calm and seek professional advice. Insurance companies who act in bad faith are relying on you being intimidated and not knowing your legal rights, and this is how they get out of paying what they owe. From the moment an incident occurs, take photos and keep records of everything that happens so that if you do end up in court, your lawyers will be fully armed to ensure you receive everything that you are entitled to.

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