When you file an insurance claim, you expect your insurance company to approve and compensate you for the losses and harm you suffered. However, there are instances when an insurer may deny your claim without valid reasons.
Fortunately, the law is on your side. Insurance contracts are legally binding, and your insurer is required to pay up legitimate claims. If your valid claim is unsuccessful, you must safeguard your legal rights.
Understand why your claim was denied
Your insurer may deny your claim for various reasons. For instance, mistakes in the paperwork, fraud, an expired policy or lack of coverage can be behind the denial of your claim.
However, the insurer must explain their reasons for denying your claim through a denial letter. It is crucial to carefully review the explanation given as it will help you address the situation.
Appealing a denied claim
In most cases, you can appeal a denied claim by following the procedures set by your insurer. It is best to first exhaust internal appeal mechanisms before exploring other options. Understanding why the insurer denied your claim is important to your appeal.
You may need to provide additional evidence or paperwork to back your claim and overturn the initial decision.
When everything else fails
If your insurer is acting in bad faith by denying your claim, you could initiate legal action against them. Insurance companies will usually try to avoid expensive lawsuits by opting for an out-of-court settlement which may be good news for you. Still, you ought to be prepared to go all the way and get the compensation you deserve.
Like with other contractual disputes, things can get complicated and it is advisable to have the necessary counsel on the best way of handling your denied claim.