What Can I Do if the Insurance Company Denied My Claim?
Insurance companies are businesses just like any other, and at times they may not approve a valid claim in order to save the company’s money. Many victims are already dealing with personal injury, illness, property damage, and a host of other issues. When difficulties dealing with an insurance company are piled on, it can be an overwhelming situation.
So what can you do if your insurance claim has been denied in New Jersey? As daunting as the task may be, there are avenues to seek not only damages for the initial claim, but additional compensation against the insurance provider for “bad faith” insurance practices.
At the Law Office of Fredson & Statmore, we understand how much strain a denied insurance claim can place on your family’s finances, and for this reason we offer our services on a contingency basis. This means we will cover all of the expenses of your insurance claim, including our own fees, and only take reimbursement upon making you a successful recovery.
Call our office today to discuss your individual needs and concerns when it comes to any kind of bad faith insurance complaint in a free and confidential consultation.
Bad Faith Insurance Lawyers and Denied Insurance Claims
- Did the insurance company act with deception or deliberately misrepresent their policies to avoid paying claims?
- Is the insurance company denial of your coverage unwarranted?
- Has the insurance company refused or delayed an investigation into your case?
- Is the insurance company waiting an unreasonable amount of time to pay out your claim?
- Has the insurance company failed to provide a reasonable explanation for denying your claim?
- Has the insurance company failed to fully and clearly disclose the upper limits of your policy?
- Has the insurance company demanded unreasonable or unattainable proof for your case?
How Can I Prove My Insurance Claim Was Wrongfully Denied?
Our attorneys have decades of experience helping clients whose insurance claims have been wrongfully rejected. In New Jersey, bad faith claims must adhere to the “fairly debatable” standard. Unfortunately, this standard protects insurance companies more than the insured party. This essentially means that it must be shown that the insurer had no reasonable basis to deny the claim. In other words, in order to prove your insurance claim was wrongfully denied, the burden of proof is on the claimant.
It is recommended that you hold onto any documents, communications, note phone calls, and record times of any relevant actions. It is also a good idea, if possible, to request any phone calls to be followed by a reiteration in writing via email or paper mail. Using a phone conversation as evidence can be difficult without a written record.
Bad faith insurance practices are not limited to claims which should have been processed. As shown in the previous section, there are a many different ways that an insurer may deceive or misinform their policy holders, including delaying pay-outs, unclear limits, and intentional misrepresentation of coverage.
“Bad faith” can be interpreted in many ways, but boils down to the insurance provider not providing services in good faith as they are so required by state and federal law. Insurance companies take bad faith cases very seriously, and will work to show they acted within the proper bounds. Some may even go as far as to sue policyholders for “reverse bad faith” if the insured fails to act in accordance with good faith practices.
Successful verdicts and settlements in bad faith insurance cases often require more than proving negligence or insurance error. The complainant must show that the insurer acted intentionally and knowingly when denying a claim.