While filing a claim with an insurance company, the policyholders expect reliability from the insurer. However, the insurer may refuse the claim due to several aspects. When a policyholder falls in a dispute with the insurer regarding claims, the policyholder is eligible to take legal actions and secure a settlement. Seeking the help of an insurance negligence lawyer can be beneficial in this process. An attorney or a lawyer dedicated to insurance negligence provides consultancy to policyholders regarding insurance claims. This process includes a proper investigation of whether a policyholder is eligible to claim a policy in the first place.

  • What is Negligence in Insurance?

Usually, many terms and conditions are associated with home, life, property, and auto insurance. Insurance negligence is one of the terms, which may lead to the cancelation of insurance claims.

A failure to act reasonably during circumstances leading to insured property damage can be considered insurance negligence. For instance, if a property is under fire damage insurance, the policyholder should, at first, try to take reasonable steps to prevent it. There are plenty of fire prevention tips that the policyholder can follow. Avoiding careless use of candles, keeping BBQ grills at a safe distance, not smoking indoors are examples. If still, fire breaks out due to any of these reasons showing negligence, it might be termed as insurance negligence by the insurer.

Secondly, when a fire breaks out, the policyholder should take proper steps to extinguish it, whether by himself or by calling the fire station. If the policyholder doesn’t take any action, the situation can lead to severe damage. The policyholder might not be able to claim full insurance for the property damage due to fire breakout. The insurer might pay a partial amount. In both cases, the policyholder loses the insurance.

Sometimes things happen by accident where it is out of the policyholder’s hand. Now, depending on the level of negligence and the type of damage, the insurer might give some consideration. Since negligence is a case-by-case assessment, the policyholders should take reasonable steps to prevent damage in the first place.

  • Examples of Insurance Negligence Cases:

Sam inherited his mother’s house, which is under insurance. The house is now vacant as Sam is on a business trip. Before leaving, he had promised the insurance company that he would have someone visit and maintain the property. Unfortunately, neither Sam found someone nor did he inform the insurance company about the same. Now that he’s back, he notices severe damage. As he claims the policy, it’s denied by the insurer because of negligence.

Esther backed out of her driveway without looking up and down her street first because there was never any traffic there. She accidentally hits another car. Though her action falls under negligence terms, her claim is accepted because she carried full coverage. She had made liability coverage to address her actions and collision coverage to deal with the damage to her car.

In both the above cases, negligence caused the insurance company to review their insurability and then come to a decision. In the first case, it’s denied whereas in the second case, it’s paid by the company.

This is why one needs to consult an insurance negligence lawyer before claiming insurance. The role of an insurance negligence attorney is to help the policyholders through powerful representation from start to finish. Most of these experienced attorneys have been successful in recovering claims for their clients. Some of them provide free claim analysis as well. However, before seeking consultation, it’s important to check whether the attorney or the company is licensed by the state.

  • Types of Insurance Disputes:

There are different types of insurance claims that individuals can file, depending upon various aspects. The attorney makes a complete analysis of the nature of the damage and the situation. Also, whether the policyholder is filing on behalf of a personal matter or for business is a determining factor. By analyzing all these measures, the lawyer finally provides a consultation.

Many insurance companies come up with the motto of treating their policyholders as family members but in the end, deny their duties. Lawyers who have experience handling insurance claim disputes know how frustrating it becomes for those policyholders. Therefore, they try to make it easier for the policyholders by providing a full-fledged consultancy. Some of the common insurance disputes are:

  1. Auto insurance claims
  2. Commercial property insurance claims
  3. Business interruption claims
  4. Condominium property insurance claims
  5. Government and municipality claims
  6. Health insurance claims
  7. Hurricane insurance claims
  8. Hotel damage claims
  9. Restaurant insurance claims
  10. Life insurance claims
  11. Disability insurance claims
  12. Residential property insurance claims
  • Benefits of Hiring an Insurance Claims Lawyer:

Sometimes, it becomes extremely difficult to negotiate with the insurance companies. The process of reaching a payout is not as easy as it seems at the beginning. There may be chances of insurance claims dispute with an insurer. The most painless way of resolving the dispute is by hiring a lawyer who has experience handling these types of cases.

The main benefits of hiring an insurance claims lawyer are:

  1. An overview of legal options
  2. An investigation of how a claim was handled by the insurer
  3. A consultation with legal and insurance experts
  4. The determination of how much the case is worth
  5. Handling communications with the insurer on the policyholder’s behalf
  6. Fighting legally for the best possible settlement
  7. Transparent communication with the policyholder on each step of the legal process

Conclusion

To sum up, hiring an insurance negligence lawyer helps the policyholders throughout the process of an insurance claim dispute. Otherwise, it could be extremely difficult and frustrating to deal with the insurance company representatives. In 2019, the statute of limitations for the states of Florida, Alabama, and Georgia was extended to five years. It means that the dispute can prolong for as long as five years. To take action legally, hiring a lawyer is the best possible choice, as suggested by the policyholders who have been able to receive their claims with the help of the negligence lawyers.