Common Excuses Insurance Companies Use To Deny Your Claim

Posted September 3, 2015

Consumers and businesses purchase insurance in order to receive compensation after a loss. If an insurance company denies the claim after loss occurs, the insured is likely to feel cheated or frustrated. Most people in this situation are angry.

Take next steps to understand the legal language of insurance denial and, with an attorney’s help, possibly reverse the insurance company’s decision.

Reading the Policy

Most people purchase insurance without taking the time to read the policy. When the policy document arrives, the insured places the document in safekeeping. Before filing a claim, read the policy from start to finish.

The language may be easy or difficult to understand, but the goal of the policy is to define coverage specifics. The policy should explain what losses will be paid and describe any it will not pay under any circumstances.

If the insured filed a claim for an excluded loss, the insurance company’s denial will be upheld. Nothing the insured says or does after the fact is likely to reverse the insurer’s decision.

Request a Written Explanation of the Claim Denial

Many insurance denial letters are just plain confusing. Contact the insurance adjuster handling the claim. Ask him or her to explain why the claim was denied in writing. Refer to policy language you believe supports the right to payment of the loss.

Asking the insurance company to explain the denial in everyday language is important. The insurance company may not have solid reasons to exclude the benefits outlined by the policy. The insurance company representative may even point to the “clear language” of the policy as an excuse to deny the claim!

Reasons to Call an Insurance Lawyer Now

Unfortunately, the representative may directly or indirectly allude to insurance fraud as the reason to avoid paying a legitimate claim.

Other reasons, like recession of the policy, should prompt the insured to consult an attorney who specializes in insurance claims without delay. He or she is best able to create a relevant argument or rebuttal to the insurer’s unreasonable denial.

Hire an Insurance Attorney

A specialist law firm can help the insured to avoid frustration and anger in the aftermath of a claim denial.

Additional arguments with the insurance adjuster probably won’t help. Letters containing the insured’s best guess at a legal argument can even hurt the claimant. Letters to the state department of insurance are unlikely to achieve the desired result.

An attorney who specializes in working with insurance companies has good relationships within these financial institutions. He will calmly and rationally explain why the claim should be paid according to the policy document. In many cases, the matter is quickly resolved with the attorney’s insight and contacts. Contact the Bennett Law Firm in Oklahoma City now to discuss your denied insurance claim at (405) 272-0303.