Insurance Companies' Tricks for Denying Claims

They Attempt to Postpone Your Claim

When filing an accident claim, postponing policyholders' claims has shown to be a highly effective strategy for insurance companies. They know that when stretched out for too long, people are apt to give up and abandon their claims. They will delay you, request additional papers, and devise various justifications to test your patience. This is infuriating, especially when you've paid them your hard-earned money for years, and they turn their backs on you and look for ways to deny your claim when you need them the most. Some insurers purposefully send incorrect forms to policyholders. Once the paperwork is filled out and submitted back, the corporation refuses the claim and begins searching for further delay tactics until it is too late to receive the full benefit of the claim.

Intentionally Confusing Contract

The insurance industry knows that not everyone reads their contracts before signing them. Even when they do, they are unable to comprehend it. More than half of the states have passed "Plain English" legislation for consumer contracts. Unfortunately, these rules have done little to address this issue, making it one of the most successful ways insurance companies deny claims. Insurers utilize ambiguous language and false euphemisms in their contracts to include anti-concurrent clauses and avoid paying claims.

The anti-concurrent clause is a typical, hidden condition in homeowners' insurance policies. This provision gained popularity as a result of Hurricane Katrina. Many homeowners believed they were protected since they purchased a policy covering hurricane and rain damage deductibles. However, the anti-concurrent provision excluded coverage for flood damage.

Consider a house that has been flooded by a hurricane, causing damage to the walls, appliances, furnishings, and gadgets. Because the policyholder's homeowner's insurance does not cover flood damage claims, the insurance company may deny the claim.

Claiming That You Do Not Need An Attorney

Many insurance companies fear that they may have to pay more on your claim if you involve an attorney. Therefore, they imply that you do not need an attorney by accepting responsibility for their acts and using language that makes you believe the process will be straightforward. In an effort to lower the amount of money they're obligated to give you, they begin asking questions and demanding additional information. Don't allow it to reach this point. If you believe that your claim is taking longer than anticipated, know that assistance is available. By consulting with our insurance claim attorneys, you improve your chances of recovering and maximizing the value of the policy you pay for.

Credit Score Discrimination

Insurance firms are beginning to use credit records to evaluate policyholders' premiums and eligibility for coverage. This is detrimental to the poor and those with poor credit. Insurers have declined renewals to policyholders who use credit cards sparingly, even if they pay their payments in cash and have a low debt profile. In addition, policyholders with spotless driving histories have had their auto rates treble upon policy renewal. Unfortunately, auto insurance believes that drivers with poor credit are irresponsible. They forget that one financial catastrophe through no fault of their own is sufficient to harm credit badly.

Policy for Canceling a Telephone Call

Policyholders are hesitant to file claims for fear of rising premiums or policy cancellation. The American Association for Justice reports that insurance firms regularly refuse to renew policies when clients contact them to ask about filing a claim. Many insurance companies treat a phone inquiry as a claim, even if the policyholder never submitted a formal claim following the inquiry. The insurer will do whatever it takes to cancel the insurance, which is unjust.

Immediate, Unreasonable Offers Following an Accident

One of the first things that many adjusters attempt to do immediately following an accident is to make an inappropriate offer to the policyholder. They do this because they are aware that once you sign away your claims, there is no turning back, and you will never receive further reimbursement for future medical expenses or vehicle repairs. Therefore, you must be ten steps ahead of them. Remember that adjusters are skilled negotiators whose job it is to defend the insurance company's interests. Therefore, they are willing to do whatever it takes to maximize their company's profits, even if it means profiting off your suffering.