Why Most Insurance Claims Are Denied

Why Most Insurance Claims Are Denied

Insurance policy

Many people who purchase an insurance policy simply assume their carrier will honor the policy in full should something happen. After all, a policy is a contract between you and the insurer, and it should be complied with entirely.

But there are times where a claim will be denied — some of the reasons are legitimate, while others are questionable at best. These are just a few of the more common reasons why denials take place.

Misrepresentation on the Part of the Insured

No matter what type of insurance policy you may have — one covering your car, your home, etc. — you have to make sure you keep your address up to date. If you’re in the middle of a move, that’s obviously an incredibly busy time. Something like notifying your insurance company of your new address could easily slip through the cracks.

If it does, however, your insurance company could use that slip against you. Make sure you always notify your insurer if you move, change your bank or purchase a new car.

Fraud

Insurers are very sophisticated when it comes to identifying fraud, and they will often reject a claim if even the slightest thing seems awry. People who try to falsify information to get more from the insurance company not only typically see their claims rejected, but they can also face major legal consequences. This can leave a black mark on someone’s record that can be so serious, he or she may not be able to obtain coverage in the future.

Not Knowing What’s Covered

This is one of the more common reasons that a policy is denied. You might think you’re covered for a certain situation, only to learn you’re not. You must have a thorough understanding of your policy to make sure you’re getting what you expect.

The problem with this is that many policies are written in hard-to-understand language. To have a complete picture of what is and isn’t covered, you might want to consider speaking with an attorney.

When to Call a Lawyer

There are many instances where policyholders who have legitimate claims that should cover their losses are denied. If this ever happens to you, it will be imperative to talk to an experienced attorney as soon as you can. If your insurer denies your claim, reduces the amount of compensation you receive or simply stalls without telling you anything, that’s when you need to act and get legal help.

Irpino, Avin & Hawkins Law Firm has a great deal of experience in helping clients who have been unfairly treated by their insurance providers. We are very familiar with insurance laws, and we can make sure your rights are protected at every turn. Please get in touch with us online or give us a call at 1-800-7500-LAW if you would like to learn more about us or if you would like to schedule a confidential consultation with one of our attorneys.

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