As if the issue that disrupted your life and required you to file an insurance claim was not stressful enough, finding out that your insurance company denied your claim can send your stress levels through the roof. That is why Florida Home Claim reminds you to remain calm because an insurance claim denial is something that happens often. You just need to know what options are open to you in order to get your insurance company to reconsider or reverse their decision. Let’s find out.
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Read the Fine Print
Although this is something most people never do, it may pay to read the fine print of your policy to understand how your insurance company pays for claims. The fine print may reveal why your claim was denied.
Even if you receive a denial, it does not need to be the end of your case. If, after reading the fine print and reviewing the entire policy, you genuinely feel that the denial is unjust, there may be steps you can take to work with your insurer that will leave both of you happy.
Why is a claim denied?
Insurance companies work with adjusters whose job is to assess the validity of every claim and decide whether there is a legal obligation for the company to make a payout. Still, you can be sure that most claims that have documents to back them up are generally considered to be valid. This may be because there are witnesses who back up your claim, or there is other solid evidence to verify what happened.
However, some cases are not so clear cut, and there may be various reasons why a claim might be denied. Among them are the following:
Your claim is worth more than your coverage – This means, for example, that your claim is for $12,000 when the policy includes coverage for $10,000. You may then just get a partial denial of the $2,000 difference.
You lack the necessary coverage – If your claim needs comprehensive coverage for it to be valid, and you do not have it, then it will be denied.
If you were breaking the law during the incident that originated this claim, it may be denied – An example can be when you are driving under the influence or without a license when an accident occurs.
What should you do if your claim is denied?
There are several things you can do when faced with a denied claim. Here are some ideas:
File With Your Insurance
Even if the other driver was at fault for the accident, start the claim with your insurance. They can help you recover your expenses from the other driver and have more legal muscle than you do to get better results.
Get Clear Estimates
If your insurer asks you to take your car to a certain shop, do so. Also, get a detailed estimate of how much the repair will cost to send to your insurance.
If you believe that your claim was wrongly denied, don’t sign any paperwork saying you accept their decision, and then request a dispute. This can be handled through mediation and the arbitrator may file in your favor once all the evidence is presented.
