As if needing to make an insurance claim isn’t stressful enough, your claim has the potential to be denied by your insurance company. It can feel defeating to receive a denial after paying for your policy, providing documentation, and creating a claim. There are steps you can take to receive the coverage you need.
In this article, a construction attorney in Clarksville, TN presents some steps to take after your insurance claim is denied.
Draft a Response
If your claim is denied, you will receive a denial electronically or by mail. Review the notice of denial to find out the reason or reasons the insurer denied the claim. There is a variety of reasons an insurance company may try to deny a claim.
The claim might be denied because:
- Coverage limits have already been met or would be exceeded
- The claim is suspected to be fraudulent
- The incident is not covered under the policy
- The claim was not reported in a timely manner
After reading the reason for denial, study your insurance policy carefully to compare it to the reason given. Create an appeal letter clearly explaining the best arguments for coverage of your claim. Your letter should include relevant terms of your policy and details of your situation to support your argument.
If your argument is compelling, or the insurance company made an error, it may reverse its denial. If the company backs its original decision, it may be time to consider litigation.
Insurance Claim Litigation
If your insurer denies your legitimate claim, you may need to sue for breach of contract. If you decide to litigate, you will need representation from an experienced lawyer. Policyholders have legal rights and may be entitled to compensation in addition to the original payment owed.
During litigation, the terms of your insurance and particular situation will be questioned in depth. Having representation from a knowledgeable construction lawyer can help your case go smoothly.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.