10 Steps to Take If Your Property Damage Insurance Company Will Not Pay

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Property damage insurance Lessons Novato

On Aug. 24, residents of Novato woke up to a massive earthquake with a magnitude of 6.0. Much property damage ensued, along with the destruction of valuables inside their homes. Insurance companies are inundated with homeowner’s insurance claims, as is always the case after such catastrophe. According to Forbes, complaints are abundant about claims not being paid.

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There are many reasons why insurance companies will not pay. As a consumer, you have the right to compensation that you have diligently been paying for. In the near future, another disastrous earthquake has been predicted. To minimize property damage, it is recommended that you retrofit your home to withstand the worst of the shake. Call Allied Restoration Company on 415-529-5637 to find out how. In the meantime, what do you do when your insurance company refuses your payout?

1. Do Not Take “No” for an Answer

If your insurance provider denies your claim, do not assume it is final. Roughly one percent of policyholders never question their insurer, but of those that do, most of them win their case or obtain an improved settlement.

2. Request a Written Reason

California law states that all claim denials are provided in writing. Any insurance company that fails to comply will be indulging in illegal practices. Insist on a good explanation, and be sure to receive it on paper.

3. Read the Fine Print of Your Policy

If there is any legitimacy to your claim denial, it will be stated in your contract. Often, your understanding of a clause is different to the way your insurance company sees it. Give credit to your expectations, because often if it feels wrong, it is.

4. Filing Errors Should Not Constitute Refusal

Filing claims correctly is essential to a smooth payout. However, if you fill out a form incorrectly or miss the submission deadline, your claim does not become invalid. If the provider proves that your error caused them harm, or interfered with their investigation, then your claim may be denied.

5. Do Your Own Research

Support your claim by actively finding out how other insurance companies handle the situation. If they would grant your claim, or give you a higher payout, challenge your insurance company to do the same.

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6. Ask for Support

Contact your insurance agent; or your policy administrator if you obtained insurance through work. You purchased the coverage from them, and it is their duty to ensure you receive the protection they promised.

7. Be in Direct Contact with the Insurance Company

If the issue has not been resolved by your agent within a month, contact the insurance company directly. Persistence is vital, and do not give up until you speak to management. Keep a record of all calls made, who you speak to and what was discussed.

8. Make a Written Complaint

The first letter should be addressed to the person responsible for denying your claim. Be sure to also inform their supervisor. Ensure that your policy number, copies of forms, bills and other supporting documentation is included and be clear about the issue. Request prompt response and keep records of all communications.

9. Follow Up

If no response is received within thirty days, follow up. Attach your original letter to a new one aimed at the complaints department, as well as the president of the company. It is considered unjust insurance practice to fail to respond quickly to letters about claims.

10. Request Help

The California Department of Insurance is available to investigate claim complaints. Your dispute will be mediated by an expert, with an outsider’s view. You could also contact a lawyer or a reputable insurance arbitrator.

Filing insurance claims in Novato can be a frustrating experience, especially when insurance companies are overwhelmed with coverage requests. Remember to be persistent and actively look for violations to your policy agreement. If you are aware of exactly what coverage you are paying for, there is little reason to be denied protection. To find out how to save on homeowners insurance premiums, contact Allied Restoration Company on 415-529-5637.

Property damage insurance Lessons Novato On Aug. 24, residents of Novato woke up...