After an accident, most people are traumatized and can’t think clearly. They wonder if they were somehow at fault and how much time and money they will need to spend in order to remedy the problem. They look at their insurance policy, and call their insurance company to handle the problem. Generally, within a few days or a week you hear from the insurance company about the claim and you get a check in the mail for the damages sustained.
But, what if you receive a letter from your insurance company which states that your claim is denied? Your first thought may be that you pay your insurance premiums on-time, and now the insurance company doesn’t want to pay you for the damage you suffered. You become upset and call the company to find out why, but you still don’t understand why they denied your claim.
Look at your insurance policy
Most people don’t have a good understanding of what is, and is not covered on their insurance. They have so much going on in their lives that they don’t have time to learn anything new. But, you have to make time because not knowing may cost you thousands of dollars. If you still don’t understand what is covered in the policy, have a trusted friend or family member look at it for you. They may be able to figure it out, or know someone who can.
Send a letter to the insurance adjuster handling your claim
After having someone look at your policy and the letter of insurance denial, if you still feel that the insurance company is wrong in denying your claim, send them a certified/registered letter which states why you feel they are wrong and what coverage on your policy covers the loss. If after a week the insurance company still denies your claim or doesn’t even respond to your letter, it may be time to contact your state insurance department.
Contact your state insurance department
Each state has an insurance department (in California it is called the CDI, California Department of Insurance) which regulates the insurance industry and its agents. More specifically, they regulate what types of insurance companies and their agents, and can audit companies if they feel they are being unfair to their customers. Insurance companies have obligations to their customers, and a duty to handle claims in good-faith. An insurance company that unnecessarily denies claims is acting in “bad faith”. Unsubstantiated insurance denials can get an insurance company in a lot of trouble with the state insurance department.
Send follow-up letter to insurance company
Give the insurance adjustor another chance to look at your claim and send him/her another certified/registered letter stating that you contacted the state insurance department. Make sure to include a copy of previous correspondence you received from them. If you still don’t get the response you feel is fair, it may be time to contact an attorney.
Contact an experienced attorney
An attorney who is experienced in insurance denials and bad faith insurance claims can help you to decide whether or not you have a valid claim against the insurance company.
Filing a policy claim against a large intimidating insurance company can be difficult when you don’t know what you are doing. However, most people don’t realize that insurance companies have to abide by the law just like everyone else, no matter how big and intimidating they may seem. If you feel like you are losing the battle with your insurance company, give us a call at Smythe Law Group. Insurance companies have lawyers to defend them, and so can you.