Dealing with the death of a loved one, injuries, property damage, or any other misfortune can be hard. And on top of that, if you are forced to fight your insurance service provider, it is easy to feel overwhelmed. Your insurance is designed to protect you from a liability claim or a financial loss. If your insurance service provider doesn’t fulfill its policy commitments by offering a defense, covering repairs to your damaged property, or protecting you against a lawsuit, you and your family could face financial disaster. This is when you can call the Miami insurance denial attorney. The insurance denial attorneys are familiar with the defenses and tactics that insurance service providers use to lessen the value of benefits paid to insurance holders or directly deny claims.
The purpose of an insurance cover is to provide financial protection against unanticipated loss. However, the insurance industry didn’t become a multi-billion-dollar industry overnight. They can maximize profits by lowballing claims, delaying, and denying.
As a policyholder, you can sue the insurance company for denying your claim. It will require you hiring a professional Miami insurance denial attorney. There are many laws designed to protect policyholders, and it is not uncommon for someone to sue his/her insurance service provider.
What are the reasons an insurance service provider may deny your claim?
There are plenty of reasons an insurance service provider can give you for denying your claim. Some of them are legitimate, while others are just absurd. Some of the common reasons for denial include:
- Bad Faith Denial: Obviously, the insurance company will not give you this reason, but might offer several explanations, hidden in unclear policy nonsense, to merely cover the fact that they just don’t want to pay for the claim.
- Insurance Fraud: Submitting exaggerated or false claims can lead to insurance fraud, carrying criminal and civil consequences.
- Claim Errors: Review your policy to check what the requirements are for approaching the insurer for a claim. The timelines offered by some insurance companies are as short as 24 hours.
- Application Errors: The insurance company may claim that you made assured falsifications on your original application that annul the coverage of your insurance policy.
- Lack of Coverage: The insurance company may argue that your policy claim isn’t covered by the policy you have. Hence, you need to review your policy’s exclusions section in order to understand what is covered and what is not.
When can you prosecute the insurance service provider for denying your claim?
Every insurance service provider various commitments to their policyholders. They must adhere to the terms of the contract, avoid unfair trade practices, and act in good faith. The duties of insurers vary from state to state, since the insurance industry is regulated at the state level. Hence, they need to refrain from the following:
- Denying an insurance claim based on an application misstatement after the contestability period has passed
- Failing to defend the policyholder in a liability lawsuit
- Denying an insurance claim with little to no explanation
- Failing to deny or approve a claim within a specified timeframe
- Refusing to play the claim even if the liability is reasonably clear