The vast majority of people in the United States have insurance- auto, life, health, home, rent, cell phone, etc. However, very few understand what it says in the contract´s fine print, let alone know what to do when they need to make a claim, and the insurance company does not want to pay.
Every year there are hundreds of thousands of complaints against insurance companies due to their negative responses when it comes to paying for claims.
A recent study by the National Association of Insurance Commissioners (NAIC) reveals that just over 26% of all complaints are due to delays in the payment from the company to the insured individual. The second most frequent complaint is due to insurance companies refusing to pay compensation.
Some common reasons why the Insurer may deny you claim are the following:
- Not Enough Information
- Taking Too Long to File
- Late Payments
- Threat of Fraud
- Claim Type Not Included in Coverage
- Loss is Close to Your Deductible
- Perilous Claims May Not Be Covered
- Somebody (or Something Else’s) Fault
- Excessive Wear
What are the types of insurance that present the most problems to pay compensation?
Health insurance, automobile, and occupational accidents are some of the most common reasons for insurance disputes; together, they amounted to more than 48% of the total number of complaints in 2019.
Insurance disputes related to housing amounted to 10% approximately, followed by complaints associated with life insurance and income.
We interviewed insurance claim lawyers from the Louis Law Group in Florida to learn what are the steps that consumers can take to avoid denied claims. Here are four steps you can follow to fight against an insurer that is delaying the payment, rejected your request, or is making low ball offers to resolve your claim.
- Keep old records
Assume that the insurance company will do everything possible to hinder the lawsuit process and not pay the money. Hence the importance of retaining any evidence that will aid you in a legal case.
Keep receipts for any home improvements, renovations, or repairs. It is useful to keep receipts and records of your possessions, especially the most expensive assets.
Please take a tour of your home and record everything you can with a video camera, then store it in a safe place outside the home, say the office, or a safe.
At the time of the dispute, write down everything you can with as much detail as possible. Include who you talked to, when, and what was discussed. Keep this information along with the receipts and records of your possessions.
- Take advantage of the state regulator
Taking an insurance company to court should be the last resort, as it can unleash an extremely long claim and severely delay the payment you need to replace your home or pay your medical bills. The most sensible thing would be to try to work directly with your insurance agent or insurance company provider, calmly and patiently, showing the evidence of each part of the process at all times. If you don’t get positive results, then use the services of a state insurance regulator to help you move forward.
- Know your insurance policy and your rights
A thorough review of your new or existing insurance policy will help you know what you can expect if you need to file a lawsuit.
This review will allow you to know details about what is covered, the steps to follow to submit the claim, the time limit to start and carry out the process, and the procedure to evaluate the amount of money that can be paid for damages.
It is also essential to know your rights regarding the dispute. You may want to have the support of a lawyer at the time the insurance company interviews you to obtain details about the accident or the value of the possessions (in case of accident or property insurance).
- Be persistent
Working out compensation with your insurance company may prove challenging, even more so if they already denied the claim. If you feel that this task is overwhelming, try to get the assistance of a lawyer who specializes in litigating this type of case. Go online and read about what other people in similar situations have done. You may be surprised to learn how many people have faced the same challenge. Talk to friends and family and ask for their advice. In any case, don’t get discouraged, the process for getting the compensation that you deserve may be slow and frustrating.