What To Do When Your Shady Insurer Won’t Pay Out
Insurance is the most important product you buy.
And you hope that you never have to use it.
If you do have an insurance claim for a car accident, health issue, or for damage to your home, you’re under a great deal of stress. Each of these situations can generate a huge expense, and you want to make sure that the insurance company pays the claim quickly, so that you can get on with life.
But what if they don’t?
When an insurer doesn’t pay your claim, it can create a huge financial hardship. Any type of insurable loss, such as a car accident, work injury, disability insurance claim, pet insurance, stolen iPhone, will cost you, if the claim isn’t paid.
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Use these tips to protect yourself against an insurance claim dispute:
Why Your Records Are So Important
When it comes to getting your hands on a claim payout, one powerful tool is a pristine set of records. One of the most important documents is a list of the contents in your home that you provide to the insurance company when you apply for coverage. You should update this list once a year, and consider taking video of the contents of your home. This is particularly important if you have artwork, antiques, or other collectables.
If you’re in a car accident, on the other hand, a collection of statements from anyone that witnessed the accident will help support your claim. If you have a claim dispute, any statements you can provide (or statements collected by law enforcement at the scene) will help you get your claim resolved.
Security cameras and still photos also document events, so determine if there are recordings for a car break-in, or a home burglary.
Finally, keep detailed records of whom you talked to, when and what was discussed with insurance company representatives. If an insurance firm is making the claims process difficult, create a document trail of their discussions. If the company’s statements are elusive, your documentation can help your case immensely.
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How an Attorney Can Help
As stated above, the tactics some insurance companies use to avoid paying a claim may be frustrating, which is why you should consider retaining a law firm that is familiar with the tactics and tendencies of large insurance companies. If you do retain an attorney, find an expert for your particular type of insurance (auto insurance, home insurance, etc.).
One recent insurance case that grabbed the headlines involved claims denied by Cigna Group. Thankfully, these people may be entitled to a re-evaluation of their claim as part of the $77 million recent settlement by CIGNA to cover claims that the nationwide disability insurer inappropriately handled. Retaining an attorney can be expensive, and heading into court isn’t always a great option, but it may be the only thing that works.
Details You Must Know
A thorough review of your insurance policy is critical, so that you understand exactly want is covered. Specifically, you need to understand the process for filing a claim, including the documentation needed, how long you have to file the claim, and the system for estimating your loss. If you have any doubts or questions about your coverage or the claims process, consult an attorney.
Use these tips to verify your insurance coverage, document your insurable items, and to respond to a denied claim. Having a plan in place will give you peace of mind.
This is for educational purposes only.
Ken Boyd
Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies
Co-Founder: accountinged.com
(email) ken@stltest.net
(website and blog) https://www.accountingaccidentally.com/
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