Insurance disputes can be challenging. Let’s say you recently were in a car accident and your vehicle has been damaged. Don’t worry, insurance will cover it, right? That’s not always the case. Discovering that an insurance company has denied your claim or has continuously delayed your payout makes the process more difficult.
What are Insurance Disputes?
An insurance dispute occurs when a policyholder and the insurance company cannot agree on a settlement. This disagreement between the two parties could arise as a result of the insurance company refusing to pay the settlement, offering to pay less than what the claim is, or delaying payment without reason. These disputes can occur despite the types of insurance you have: health, home, auto, and more.
There are numerous reasons you could experience an insurance dispute with your insurance provider. Some of the most common types of insurance disputes
- Bad faith insurance disputes occur as a result of poor investigation from the insurance company.
- Disputes that come from an adjuster who determines that any losses, such as losses from a car accident, are not covered by your auto insurance policy.
- Health insurance disputes arise as a result of the insurance company saying that there is a lapse in coverage or that your health issue or injury is not covered.
- A home insurance company denying a claim because they state that an accident, such as a fire, was caused by the individuals living in the home
If no reason is provided, an insurance company denying, paying partial, or delaying payment may be a breach of duty.
Understanding the Unfair Claims Practices Act
Indiana is one of many states to have adopted the Unfair Claims Practices Act. This Act protects insurance buyers from unjust behavior by insurers in the claims settlement process. This occurs when there is an improper avoidance of a claim by the insurance company or when there is an attempt to reduce the size of the claim.
What to Do if You Have Insurance Disputes
It’s essential to take a few steps when you file a claim. First, you should do your research: read your policy thoroughly and understand what is and what is not covered. Contact the insurance company and send them a claim appeal letter that explains why your claim should be approved. An insurance company is bound by law to act in good faith—meaning acting with fairness and honesty. So, they cannot deny a claim simply to save money.
Foley & Small, Your Attorneys
If you are ever in a situation where you can’t reach an agreement with your insurance company, you can seek legal help by hiring an attorney. Foley & Small has years of experience dealing with insurance disputes including car, home, fire, flood, and business policy litigation. Find out more about insurance disagreements, we are here to help you with your case.