Many homeowners receive a letter in the mail from their insurance provider saying their claim was denied. As unsettling as this may be, most of them ignore the reasons why insurance companies deny claims. Although some reasons are substantial, others are tactics employed to avoid payment.
Here we have outlined some ilegal and unethical practices from insurance companies that are common.
Many insurance companies opt in for unresponsiveness. In an effort to contact your insurance provider you might notice their lack of action and avoidance. Sometimes this tactic is applied with the hopes that the policyholder will give up contacting them. Although this may be very frustrating, keep in mind that in many states this is ilegal and action can be taken. Try to have as much written evidence as possible of your attempt to reach them.
2. Delaying as long as possible the investigation & payment of your claim:
Unjustifiably delaying the investigation and payment of your claim is bad practice. Sometimes insurance company delay the process to dig up any kind of information there may exist to reject your claim.
3. Asking for unnecessary documents and paperwork:
Most insurance companies try to ask the policyholder for documents and paperwork that is unnecessary and often unreasonable. Many homeowners find themselves confused and overwhelmed with this amount of paperwork they sometimes don’t even have. This is a common tactic employed by insurance companies to prevent from paying the claim.
4. Re interpreting the terms of your policy to avoid payment:
Many policy holders find themselves very confused when they receive a response from their insurance company stating a completely different interpretation of their policy terms. It is very important to be aware of the fact that insurance companies may to try to re interpret the terms in order to underpay a claim or even sometimes deny it.
As bad as this may seem, the majority of policyholders are underpaid for their claims. Insufficient experience dealing with these processes are the primary reason why insurance companies take advantage and often agree to pay less than the actual value for damages a property incurs.
6. Changing the terms to their convenience:
Changing the terms of a policy is ilegal and can have repercussions. This would be an example of bad insurance practice.
In case you ever find yourself in any situation like the ones mentioned above, know that you can always take legal actions. However, these actions can take a long time and effort.
One of the best solutions is a Public Adjuster. These professionals are trained to know all the tactics used by insurance companies and all the ways to assure homeowners a fair payment with proper documentation and evidence of their case.
We are here to help! We will take the appropriate measures to guarantee you are paid what you deserve. Remember that because your insurance company denied your claim it doesn’t mean the fight is over. We can reopen your claim and maximize its payout. It is never too late!
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