If your insurance company denies your claim, is there anything more you can do? A good number of victims feel stranded when the insurance company says no. But take heart as it is certainly not over at that point. Remember that an insurance company is a business with a profit motive and if they can find a way to deny your claim it will help their financial performance. They will certainly interpret the language of the policy to their advantage.
Your insurance company may deny your claim for one or more of the following reasons:
- A policy exclusion, for example the policy doesn’t cover that category of loss
- The claim wasn’t filed within a particular time limit
- The incident happened outside of your policy coverage dates
ALTHOUGH AN INSURANCE COMPANY IS REQUIRED TO ACT IN GOOD FAITH BY INVESTIGATING YOUR CLAIM AND ASSESSING COMPENSATION IN A TIMELY MANNER, THEY MAY NOT ALWAYS DECIDE IN YOUR FAVOR.
However, when they do deny your claim they must provide you with a reason. They must also notify you of your right to challenge a claims decision as failure to do so waives other rights they have in the policy.
There are times when an insurance company may not act in good faith. We have seen cases of insurance companies who have wrongfully cancelled a policy, raised premiums after a claim, delayed payment without good reason or refused to pay a claim without conducting an investigation.
If your insurance company denies your claim you must first request them to send you the reason in writing. An experienced insurance attorney can assist you in reviewing the written explanation and your insurance policy to see if you have a case to appeal your claim. If you have cause to appeal then the attorney will assist with all aspects of your case, from filing the dispute to taking the insurance company to court if warranted. It is important to select an attorney skilled in insurance law to review the particulars as policy language can be quite complicated and open to interpretation.