Insurance policies serve a vital purpose in the U.S. economy. Without insurance, individuals and businesses would suffer certain financial ruin whenever they suffered any kind of significant property damage or loss. People pay their insurance premiums in expectation that the insurance company will uphold their end of the bargain if something unfortunate were to happen. When an individual or business owner suffers a covered loss and the insurance company denies the claim, it can create difficulties for the policy holder.
Insurance companies are motivated by profit, and when they can lower their expenses by not covering certain claims. If an insurance company chooses not to insure a covered loss, they must be able to explain exactly why they chose not to cover the claim. If their reasons are invalid, you as the policyholder could have a bad faith claim against your insurance company.
Reasons your property insurance claim might be denied
There are a few more common reasons your claim might be denied including the following:
- Does your policy cover the peril(s) for which you want to be compensated?
- Did you take every precaution possible to prevent the damage from occurring?
- Did you misrepresent any facts on your insurance policy application?
- Did you file your claim within the timeframe stipulated on your policy?
- Has the policy lapsed due to nonpayment of the policy premium?
There are several reasons for an insurance company denying a claim, but it is important to note that not every denial of coverage means that the insurance company is operating in bad faith. Bad faith occurs when the insurance company’s denial of benefits if without merit, or done in a malicious way that is unreasonable.
If your claim has been denied in bad faith by your insurer, you may be entitled to recover the amount that you were entitled to for the loss under your policy. If further damage occurs due to the fact that the initial damage was not corrected, you may be entitled to recover damages to compensate you for those consequential losses.
How an attorney might be able to help
When you think you might be dealing with a bad faith situation with your insurer and you don’t want to wage a back and forth battle with them, you might consider working with a lawyer who will be able to get results for you. A lawyer will be able to tell after a short consultation whether or not your case might be worth pursuing. If they decide to take it on, you do not have to pay attorney fees up front, rather, they work on a contingency fee bases. This means that they will collect their attorney fees as a percentage of the damages that they are able to collect from the insurance company on your behalf. An attorney from the Stipe Law Firm has experience negotiating with insurance companies and they know when it makes sense to litigate your claim in order to recover what you are entitled to.
If you believe that your insurance company denied your claim unfairly, you may contact the experienced and professional attorneys at Stipe Law Firm. We can help you make the right decision that will protect you and your family in the future. Contact our Oklahoma insurance dispute attorneys, or call (918) 505-7741 today to schedule a consultation at our McAlester-based firm.