Many people feel that insurance companies are in the business of denying claims, even when they are legitimate. This can be frustrating when bills for things like home repairs are piling up, and the insurer is using a technicality to avoid or underpay the claim. At this point, it can be helpful to understand how these companies work to save money at the policyholder’s expense.
Hiding Behind Policy Language
Many property owners assume that whatever an insurance company says must be correct. After all, why would a company that advertises trust, protection and “customer first” actually try to pay as little as possible? Still, most insurance policies are written by lawyers in a complicated language with the hope that many consumers won’t have an attorney as expert witness Houston TX to testify that denials were made in bad faith.
Hiding Behind Mistakes in Claim Submittals
In extreme cases, insurance companies could use a single error in the claim paperwork to deny the entire thing. Sometimes, policyholders who are unaware of a specific time frame in which they have to file the claim could find themselves out of luck if they’re even a day late. A very typical example might be a discrepancy between their adjuster’s appraisal and the actual repair bill. The insurer will usually reimburse the lower amount almost every time.
Counting on Policyholders Not to File a Claim or an Appeal
Insurance companies have been known to raise premiums or cancel coverage after policyholders file claims. This makes a lot of people reluctant even to suggest that they had a car accident or property damage. Additionally, insurers often count on their customers’ reluctance to do the legwork to appeal the claim or hire a lawyer to pursue it for them.
It can be discouraging when a trusted company disappears behind confusing language and interpretive details. However, diligent consumers who press the issue might get more favorable results.