Next Steps When Your Insurance Appeal is Denied

Property insurance policies typically define the amount of time that an insurance company has to approve or deny claims for loss and property damage. If your claim is denied or you don’t agree on the amount that your insurance offers to pay you, you have the right to dispute it with the insurance company. Your insurance policy and even the state in which you reside have laws that stipulate how long you have to dispute the insurance company’s decision.

Steps in the appeal process include:

Get It In Writing!

In California, an insurance company has to provide an insured with a written explanation of why the claim was denied or limited. If you feel that your claim has been denied or underpaid, contact Smythe Law Group, Inc. for a review of the policy language and denial letter.

Written Appeal

For your own protection, you should always appeal or dispute your insurance company’s denial or limitation in writing. The appeal should include the following things.

• Your name.
• Date, location, and details of the loss.
• Insurance policy number.
• Claim Number.
• Don’t give up if you feel that you are being treated unfairly by a bad faith insurance adjuster. If you give up, the insurance company wins.

Documentation

Keep copies of all letters, emails, and phone conversations for future reference. Those include documents sent and received by you. When you speak with anyone from the insurance company or anyone involved with your claim, be sure to record dates, names and titles of persons you spoke with, and what you spoke about. Try to confirm all conversations in writing. Be as thorough as possible. It is important that you are able to reference those conversations at a later date.

Bad Faith

Sometimes insurance companies make mistakes and when they realize it, they quickly correct those mistakes. Then there are times when insurance companies act in unreasonable in their claims handling.  Insurance companies have a duty to act in good faith and deal fairly with their policyholders. When an insurance company breaks that duty, they are acting in bad faith and can be held liable for their actions.

Contacting an Attorney for Help

If you have appealed the insurance company’s decision and still have not reached a suitable resolution, it may be time to contact an experienced property insurance attorney who handles bad faith claims. The attorney may be able to convince the insurance company to act in good faith, or it may involve filing a complaint with the court, or mediation or arbitration may be necessary. If the attorney finds that the insurance company was acting in unreasonable, you may be able to bring a lawsuit against them for punitive and consequential damages, in addition to being paid fairly for your loss.

Here at the Smythe Law Group, Inc. our primary goal is to help property owners with their insurance claims and bad faith litigation. Insurance companies have adjusters who work for them, let us help you. Give us a call.