People take out insurance policies to protect themselves in the case of unforeseen accidents or other issues. Unfortunately, providers will often find many reasons to deny the valid claims. They may give you many reasons for a denial, such as they determined the cause of damages is not covered under the policy.
A denial does not mean you have no options to collect the settlement needed to cover your damages and losses. Texas insurance claim lawyers at Kirk Law Firm understand the process and could challenge the insurance company’s decisions and handle negotiations on your behalf.
Typical Reasons Insurance Companies Deny Claims
Property owners purchase insurance policies to protect their interests and pay their premiums assuming the company will pay when necessary. Unfortunately for the consumer, the first responsibility of insurance adjusters is to minimize the payouts whenever possible to protect the company. Some typical reasons they may deny a claim include:
- Policy exclusions
- Pre-existing conditions
- Wear and tear
- Delay in filing the claim
- Manufacturing defects
- Failure to prevent additional damage
- Services not appropriate or authorized
- Damage is less than the deductible
- Claim form errors or missing information
Receiving a notice of denial of coverage from an insurance company is frustrating and stressful, but your pursuit of the claim does not have to end with their denial.
Consumers Have the Right to Appeal Insurance Provider Decisions
When insurance claims are denied, consumers have the right to hire an attorney to appeal the decision. Several options are available depending on the specific case details and the reason for denial. The policyholder can request the provider conduct a reinspection of the property.
Upon making their determination, the insurance company must issue a claims determination letter, which should give detailed information about their reasons for denying the claim. The attorneys at Kirk Law Firm will review the insurance company’s decision and help you make them pay the money you are owed.
Texas Law Protects the Consumer Policyholder
The Texas Insurance Code and the Texas Deceptive Trade Practices Act (DTPA) provide the law that protects Texas policyholders from the insurance companies wrongful actions and provide the remedies that the consumer can recover in the event of a violation.
The Texas Department of Insurance is responsible for regulating insurance agencies and companies conducting business within Texas to ensure compliance with the law and enforces the state insurance regulations to protect consumers from unfair or bad-faith practices.
One of the ways the Texas Department of Insurance protects the consumer is by enforcing the law that requires every insurance policy covering a property in Texas to include the Consumer Bill of Rights. One of your rights as a policyholder is to hire an attorney to contest your insurance company’s actions or decisions.
If your insurance company misrepresents your policy coverage, does not properly investigate your claim, or misrepresents the extent of your damage, then they have violated Texas Law and you may be entitled to damages. Under Texas Law, if your insurance company wrongfully denies your claim you may be entitled to recover your attorney fees, litigation costs, and up to three times your actual damages.
Speak to an Insurance Claim Denial Attorney Today
A seasoned insurance law attorney can help ensure that your insurance company complies with the law and prevent them from engaging in bad-faith practices.
An attorney could also communicate on your behalf and negotiate the fair settlement amount you need and deserve. While receiving a denial is frustrating, and the appeals process can be time consuming, you have options to overcome the decision and collect the payment due to you under your policy.
Call the Kirk Law Firm for a free consultation and one of our seasoned attorneys can help you fight for your rights and get you the compensation you deserve.