Property insurance claim denials are quite common. Sometimes, even property insurance attorneys with years of experience find themselves handling claim denials. Dealing with denied claims can be time-consuming, frustrating, and annoying.
Insurance claims are often denied in error and sometimes for legitimate reasons. Other times, insurance companies’ reasons for the denial are unknown. If your claim was denied, there are steps you can take to ensure you get paid. These include:
Take Time to Understand the Reason for Denial
The insurance company will communicate with you through email or a letter stating their reasons and motives for denying your property insurance claim. But if the insurance company doesn’t send you formal communication, your claim hasn’t been denied yet. Therefore, if you don’t receive a formal letter, ensure you follow up with your insurance provider for progress on your case.
But if you receive the letter, the insurance company will explain the denial in detail and justify it. Ensure you read and understand the content of the letter. Then check your policy’s terms and conditions and confirm if their reasons for the denial are justified.
Are the reasons for claim denial legitimate? If the type of loss you incurred is not covered under your policy, or you didn’t pay your monthly premium, then your reason for denial is legit. If this is the case, you can’t do anything to overturn the ruling.
However, if your insurance premiums were up-to-date and the policy covers the type of loss you incurred, you have a right to appeal the claim denial. Contact your insurance adjuster and talk to them about your views. Let them explain why your claim was denied.
Contacting an insurance company to get a claim denial reversed is not an easy process. It’s time-consuming, complicated, and can be quite annoying. Do not give up the fight, especially if you can prove that your claim denial reasons were not legitimate.
Consider Filing an Appeal
Do you feel that your insurance adjuster is not adequately assisting you in reversing the claim denial ruling? Dealing with insurance adjusters can be very complicated, especially after a claim denial. Keep in mind that insurance adjusters are employees of the insurance company. Hence, they will be looking out for the best interest of the insurance company.
After a claim denial, you may have limited time to file an appeal. Unfortunately, the clock starts ticking immediately after the claim is denied. To file an appeal, ensure you read your insurance policy carefully to understand the outlined process to follow.
After filing the appeal, you will trigger a formal review of the denied insurance claim. Ensure you share all the documents and evidence you have to support your appeal. The evidence should also support reasons why you feel the denial was not legitimate.
The documents you share should support your position and fight to get the insurance company to cover your incurred damages. Keep in mind that the more structured and organized your presentation and documentation are, the higher your chances of getting the insurance company to overturn their decision.
Consult a Property Insurance Lawyer
If your claim is denied without a justifiable reason, contacting a property insurance lawyer is a wise move. Your property insurance policy is supposed to aid you in recovering from losses and property damage. However, some insurance companies look for ways to deny policy holder’s claims to make profits.
After experiencing property loss, your insurance company’s priority is to ensure they don’t pay out your claim. They will use every trick, including dragging your case along, to avoid paying your claim. Therefore, hiring an attorney is the best way to get a fair settlement as soon as possible.
An experienced property attorney will have the necessary knowledge and experience to take on the insurance company. They will also help you negotiate a fair property insurance settlement. Your attorney will know every loophole, delaying tactic, and lowball offers that insurance company lawyers use to underpay policyholders.
File a Complaint
The insurance niche is one of the most regulated industries by the government. Unfortunately, there are more cases in court related to bad faith lawsuits and property claim disputes. That’s because most companies will do anything to avoid paying a claim.
If you are a policyholder that has followed all the processes and adhered to the terms of your claim, you may have a good standing to file a formal complaint. The claim should prove that the insurance carrier did not process your claim properly on its merit. You should file your complaint with the necessary insurance commissioner in your state.
The commissioner will investigate if the insurance carrier treated your insurance claim fairly. This will help you expose insurance companies notorious for denying claims to make profits without justifiable reasons.
Delayed and late submissions are common reasons for claim denial. It’s essential to submit your claim on time, within the indicated timeframe by your state laws and the insurance company laws. If you don’t do this, your claim could be denied.
Alternatively, the claim could be decided based on the documents and information you provided only without considering additional factors. On the other hand, untimely submissions may lead to appeals and requests for review being denied and termed untimely. For this reason, ensure you act quickly and avoid any delays.
Now You Know How to Handle Denied Claims
Have you found yourself in the unfortunate position of getting your property insurance claim denied? Denied claims are often a source of stress and frustration for policyholders. While handling a denied claim could be quite stressful, knowing what to do next will make the process easier.
If you have reason to believe that the reason for denial is not legitimate, you can file an appeal. You can also contact a reputable property insurance lawyer to help you through the appeal process.
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