You have the right to sue any insurance company that has failed to live up to its agreed-upon responsibilities, especially when you find yourself in an unusual scenario. However, before going up against your insurance company, you should be aware of a few things. The worst has just happened. Either you’re the victim of theft, or you find your property has been severely damaged. You’ve followed due process, contacted the police and your insurance company at the appropriate time. You’re waiting patiently for your claim to be approved so you can begin piecing yourself back together, only for your insurance company to deem your claim invalid! What do you do? Here’s all you need to know about suing your insurance company for not approving your claims.
Why would an Insurance Company Not Approve Your Claim?
\Keeping in mind that insurance companies are established to turn a profit, your insurer may invalidate your claims for any number of reasons. Listed below are a few of them.
Your insurance company may claim that your policy doesn’t cover the damage payout you want to receive. Go through the fine print of your insurance policy to determine what you are and aren’t insured for yourself. The good news here is that any ambiguities in court will be judged in your favor, not your insurers.
2. Application Oversight
The insurance company may capitalize on any error in your original application and use it as grounds for nullifying your entire coverage.
3. Claim Errors
Depending on the requirements that your insurer employs, sometimes, merely notifying your insurance provider of an accident after 24 hours may lead to your claims being denied.
4. Incident of Insurance Fraud
Submitting an insurance claim with falsified or exaggerated information could not only result in your claims being denied but also carries some severe legal penalties.
5. Bad Faith Denial
When your insurer is fully aware your claims are valid but hides under confusing insurance lexis, so that they don’t pay; your insurer is in bad faith denial. Once you’re certain you’ve kept up your end of the policy duly, you can start preparing for your day in court.
Four Things to Keep in Mind when Suing Your Insurance Company
If you’ll be suing your insurance company for violating the term of your insurance policy, it’s always helpful to be prepared. The more information and proof you have, the higher the chances of winning and claiming what is rightfully yours. Here are four things to bear in mind when suing your insurer:
1. Keep Proof of all Interactions with Your Insurer
Be proactive! Make sure you can tender proof of all conversations that transpired between you and your insurance company. Keep everything, including information on your representatives, such as their names and dates.
2. Keep Records of Everything Relating to the Insured Property
Keep every document relating to the insured property. It’s especially helpful if you can present an image of the insured property as it is after the accident.
3. Document your Expenses
Be as truthful as you can be when recording all the expenses you incurred, resulting from the accident. Keep everything from the cost of repairs and lost wages to medical expenses.
4. Pick a Skilled Attorney
The wealth of experience your lawyer has factored into how well this case will swing your way. This is why you need someone with extensive knowledge to interpret the nuances of insurance law in your favor.
Even when you’re right and your claim is valid, suing your insurer is a delicate process. The sooner you can involve an attorney to help you wade through these murky waters, the higher your chances of winning in court.