The unthinkable has happened, and you have suffered a terrible accident. Fortunately, you purchased insurance, and you are relieved that your damages will be covered by insurance. But after you file your claim, you are stunned when your insurance company offers you a much lower amount than you need.
This scenario is all too real for many policyholders. Many consumers purchase costly insurance policies only to receive a settlement that is far too low. Sometimes, insurance companies will reject claims entirely. If this happens, it may be necessary to dispute your claim offer.
- The first step to disputing your claim offer or coverage is to review your policy. Make sure that your policy does cover your claim. Your policy may even contain guidelines on how to dispute your insurer.
- Next, speak to your agent or broker about your claim. Have the necessary paperwork, like your policy and the evidence of loss, on hand. Carefully document this process along the way, including the name of the person you speak to, the date and time that you call and the content of your conversation.
- You may need to seek outside assistance to help with your claim. After all, insurance policies are confusing enough without having to navigate the complex details of a coverage dispute. Insurance attorneys often help resolve insurance disputes and obtain favorable settlements.
If an insurance company rejects your claim even if it is covered in your policy, the company may be acting in bad faith. An insurance company is said to be acting in bad faith if it fails to fulfill its obligations to policyholders. Some examples of bad faith insurance include taking an unreasonable amount of time to respond to a claim, failing to provide a reason for fulfilling a claim and declining to fulfill a claim that should be covered by the customer’s policy.