Let’s face it – fully understanding your insurance coverage can be an overwhelming task, especially when it comes to the language used in your contract. If you have to file an insurance claim and it’s denied, it can be difficult to know if you were denied in bad faith because of the volume of unfamiliar words and phrases.
Actual cash value (ACV) policies versus recoverable cash value (RCV) policies are just a few of these terms. However, knowing exactly what they mean and the type of policy you should choose is difficult for many people to understand.
The bad faith insurance lawyers at Millin and Millin know better than anyone the confusion that situations like these can cause. We hope to give you a basic understanding of these terms, but always remember that we’re available to talk to if you need more details!
The main difference between actual cash value and recoverable cash value policies is whether or not depreciation is covered by the policy. It’s key to understanding the differences between the two, particularly when you file a large loss claim.
What does this mean for the policyholder? Basically, ACV policies are cheaper than RCV policies due to the fact that they do not cover the depreciation. However, they’ll also pay out sooner but at a lower total.
In addition to explaining these concepts in greater detail, a bad faith insurance lawyer can play a huge role if you feel that you have been a victim of bad faith. The frustration and stress of a denied insurance claim on top of complex language is something we know all too well.
A bad faith insurance lawyer will review your policy as well as the decision made by the insurance company. They will walk you through the process and make sure that you feel understood and heard.
If the insurance company denied the claim in bad faith, failed to pay out the correct amount, or delayed payments, then you definitely need the help of a bad faith insurance lawyer. The delayed payments could be even more of a problem if you opt for an RCV as they can take longer to pay out.
For many people, it’s difficult to realize when you may need the help of bad faith insurance lawyers, especially when the terms and language of the policy are overly complex. Millin and Millin can be there for you and answer any questions you may have if you believe your insurance claim was denied in bad faith.
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Although there are many cases in which an insurance claim is denied in bad faith, there are also many instances in which the denial is valid. How will you know whether or not the decision was appropriate and ethical?
The bad faith insurance lawyers at Millin and Millin are professionals who can help you determine with certainty whether or not your claim was denied in bad faith. However, it’s important to have a general understanding of why and how an insurance company could potentially be allowed to deny your claim.
As stated above, not every disapproval of a claim is done in bad faith. Generally, you should not assume that unethical behavior took place just because your claim was denied. Additionally, there may be instances when there is more of a miscommunication than an outright act of bad faith.
To begin, here are some examples of when it’s reasonable for your insurance company to deny your claim:
For example, however, say there is fire damage in your kitchen, and you have a clause in your policy that accounts specifically for such damages. You submit a claim, but the insurance company is quoting a lower amount than what you feel the damages cost. In this instance, the insurance company could be acting in bad faith, especially if you are able to prove the fire cost you more than they will cover.
If you feel that your insurance company will not compensate you properly, it’s important to reach out to a bad faith insurance lawyer. While it may not be ideal, insurance companies are still businesses and therefore, seek to optimize profits.
In order to do that, some people’s claims are approved for less than requested or outright denied. This is why retaining legal counsel could help you save money in the long run.
For the average person, it can be difficult to tell if your insurance claim was denied in bad faith or not. We hope this guide has helped, but if you need additional support, the bad faith insurance lawyers at Millin and MIllin are always prepared to answer any questions you may have!
Insurance helps us respond to disasters with strength by providing the funds we need to rebuild our damaged properties, homes, businesses, and replace our lost valuables. Understanding the procedures insurance companies use to provide relief aid will help make the recovery process smoother.
After you have presented a claim for damages, an insurance adjuster will come out to inspect your property damage and verify lost possessions. If you have already found a contractor who will help you rebuild, be sure they are also present the day the insurance adjuster visits you. Your contractor can help explain the rebuilding estimates you are facing to the insurance adjuster.
Depending on the adjuster's evaluation, your insurer will then offer compensation based on the total damages suffered. It’s important to be aware that this amount can be negotiated; homeowners are not forced to accept the first offer they get from an insurance company. This is another opportunity to have a contractor offer the true cost of repairs in case an insurance company is paying less than you expect or need.
If you believe your insurance company is failing to account for all damages, you can also hire an independent insurance adjuster to help negotiate your claim.
Finally, how claims are repaid will be affected if your home is still owned by a mortgage company. In this case, you will not receive the insurance funds directly, and instead will have to endorse a check that goes on to the mortgage company. Most of the work done to rebuild the home will have to be approved by the mortgage company, which usually means building contractors will be reviewed, and payments will be split into multiple parts based on their progress.
How much money the insurance company will pay for repairs depends on a few factors, all of which will be spelled out in your policy details.
First, there is a difference between paying replacement costs versus the actual cash value. Replacement costs are usually higher, since this uses the present-day cost of a new item that is purchased as a replacement.
An actual cash value refund is often less than the replacement cost, since the actual value of your items have gone down over time due to wear and tear.
Home insurance companies also charge a deductible fee for any item that they are replacing. This deductible amount is how much the homeowner is expected to pay towards the replacement of items. Insurance companies usually charge higher deductibles for damages caused by certain events like hurricanes, so this is another difference in policies to pay attention to.
The cost of rebuilding after a tragedy often includes more than just the value of your possessions; there are also lost wages, relocation expenses, and other factors you can take into consideration. The insurance policy you have been paying monthly premiums toward should tell you what other benefits you can take advantage of to repay expenses incurred because of a hurricane or other disaster.
Most plans include Additional Living Expense (ALE) benefits, to help you pay for the cost of hotels, food, and transportation after a disaster forces you to find shelter.
Cleanup fees can also be reimbursed by insurance, as the process of clearing downed trees and building structures is often the first priority in any disaster. In this case, be sure to keep all receipts as evidence of payment toward any rebuilding effort.
At Millin & Millin, we are dedicated to helping you get your insurance to pay out what is owed to you.
If you are having to file an insurance claim, it’s likely due to the fact that you have just suffered through a terrible event. Having to deal with the unscrupulous tactics of an insurance company is the last thing you need on your plate during this time.
Depend on the responsiveness of the legal team at Millin & Millin. We know how to deal with insurance companies acting in bad faith and can help you obtain the
compensation that is owed to you.
When tragedy strikes, we are often left emotionally vulnerable. When an expected safety net, like homeowner’s insurance, also fails us, the resulting confusion can lead to anger.
Hopefully, this listing of common reasons for why insurance claims are denied (and what can be done to avoid denial) can help bring calm and sense back to a stressful situation.
An insurance company must explain to you, in writing, why any insurance claim has been denied. Phone conversations are not enough to be a denial.
Basic reasons for denial include not paying premiums on time, not filing a claim in time, and not documenting the damages claimed. These are all legitimate reasons for denying a claim and do not leave much ground to fight the denial.
A more complicated matter comes from an insurance policy’s exclusions lists. For instance, home insurance in many coastal counties does not include an option to cover wind or hail damage, so these claims can be denied. Flood damage is also covered by a separate insurance, so those claims must be made with the appropriate organization, and not with your homeowner’s insurance company.
Homeowners may also be denied coverage based on how they presented the damage claims to the insurance company. Without good documentation, a company can deny your proof of possession. Homeowners are also expected to try to prevent further damage from occurring after the initial incident. For example, if a wind storm created holes in your roof, it is your duty to temporarily cover those holes, instead of allowing later rainstorms to further damage your home.
If you believe your insurance company is denying your claim without a legitimate reason, you can follow these steps below on your own, or you can find a Texas homeowners insurance claims attorney to help you take legal action:
At Millin & Millin, we are dedicated to helping you get your insurance to pay out what is owed to you.
If you are having to file an insurance claim, it’s likely due to the fact that you have just suffered through a terrible event. Having to deal with the unscrupulous tactics of an insurance company is the last thing you need on your plate during this time.
Depend on the responsiveness of the bad faith insurance legal team of Millin & Millin to get the justice you need when seeking your rightful compensation from deceitful insurers.
While most business owners are probably familiar with the more common types of insurance claims, they may be at a loss when it comes to seeking coverage for more rare types of damage. After a year like 2020, business owners are probably dealing with some pretty rare kinds of losses.
Thankfully, those losses may be covered by a civil authority clause.
While a civil authority clause may offer coverage for losses caused by coronavirus restrictions, making a successful claim under this provision can be difficult, partially due to coronavirus claims being a new type of claim without clear precedents. Because of this, insurance companies may attempt to deny these claims using bad faith tactics.
Today, your McAllen bad faith insurance lawyers at Millin & Millin will go in depth regarding what you should know about civil authority coverage.
A civil authority clause is a provision of some business interruption insurance policies meant to protect the policyholder from the financial damage caused by a closure that was a result of orders made by a government official or other civil authority.
Essentially, if your business is closed after the government has prohibited access due to a natural disaster, you may be able to file an insurance claim under a civil authority clause.
It’s worth remembering that, under these forms of clauses, coverage is offered based on damage done to property other than the insured property itself. This means that if your store was damaged by a hurricane, you probably wouldn’t file a civil authority claim. However, if the hurricane caused damage to the road that once gave access to your business and authorities declared access to the affected area prohibited, then you may be able to make a civil authority claim.
A local or state government or other civil authority may order evictions or prohibit access to regions for many different reasons. A civil authority clause may include these, as well as a few other types of damages:
Keep in mind that not every civil authority clause will cover all of these types of closures. Insurance companies will use the specific language in your policy in an effort to argue against your claim.
If your civil authority closure business interruption claim has been denied, you may want to speak to a bad faith insurance attorney to determine whether or not your claim was wrongfully rejected.
Due to the relative unfamiliarity of coronavirus-related business interruption claims, certain insurers have used bad faith tactics to deny rightful coverage. Nevertheless, there are also ways that these claims can be denied that don’t necessarily constitute bad faith:
This list of possible denial justifications is non-exhaustive, and just because your insurer is using one of these arguments doesn’t mean that they are in the right to do so. If you have any reason to believe that your business interruption claim was wrongfully denied, reach out to the bad faith insurance attorneys of Millin & Millin for an argument that stands strong in your favor.
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Just like other businesses, insurance companies are interested in making money. Because of this, they will sometimes act in bad faith in order to avoid paying out the compensation their policyholders deserve. One of the best ways to avoid falling victim to these bad faith practices is to be aware of them beforehand.
Today, your McAllen bad faith insurance lawyers at Millin & Millin will list the 6 most common types of bad faith practices done by commercial insurance companies. These acts should be taken very seriously as they can result in massive financial losses.
If you have experienced any of these issues, you should contact a bad faith insurance attorney immediately.
There are many ways that insurers can use deception to deny your claim or minimize your rightful compensation. Insurance policies can be incredibly complex, making it easier for these companies to deceive policyholders regarding their contents.
An insurer may use deceptive practices by intentionally withholding information about filing deadlines or available coverage. They may also lie about what exclusions are included in your policy in an attempt to deny valid claims.
Oftentimes, insurance claims are made by businesses that need emergency funds to cover some sort of unexpected damage or financial crisis. Because of this, delays in compensation can be a serious issue.
However, insurance companies usually have a specific reason for delaying their process of approving or rejecting your claim. Delays can give insurance companies greater leverage in settlement negotiations as claimants' needs become more pressing; delays may also discourage claimants from pursuing their claim at all.
In Texas, insurance companies have 15 days to respond to your claim, either by accepting, denying, or requesting more time with an explanation for that request. If you haven’t received a response within 15 days of filing, you may wish to contact a bad faith insurance attorney about filing a suit against your insurer.
In order to deny claims, insurance companies may simply decide not to investigate them fully. It’s possible that the company may have bad faith guidelines in place in order to ensure more claims are denied. Insurance companies are required by law to make a fair effort to evaluate your claim.
An insurance policy is a binding contract for both parties. With that, if you make a valid claim against that policy, the insurance company must accept that claim. Any denial you receive should have a factual and evidence-based explanation.
Insurers aren’t allowed to simply decide to pay you less than you need in order to save themselves money. Regardless, many insurers may attempt to do just that.
If your insurance company is lowballing their settlement offers, they may be acting in bad faith to protect their bottom line.
Sending threatening messages is absolutely never allowed for insurers. This may include threatening to share private information, threatening to harm you or your business physically, or any other messages that threaten any sort of harm for any reason.
If you receive any messages of this type, contact a bad faith insurance attorney. The law takes these actions very seriously.
Don’t let insurance companies take advantage of you. Seek the guidance of Millin & Millin bad faith insurance attorneys.
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The 2017 hurricane season was the most expensive in U.S. history, causing over $200 billion in damages. This was especially true of Harvey in Texas.
As a business owner in the Rio Grande Valley, your business is much more susceptible to flooding, hurricane damages, and other weather-related damages. While commercial property insurance will help to cover physical damages to your business, Business Interruption Insurance (also known as Business Income Insurance) helps to cover expenses and lost income that come as a result of the disaster.
With the 2018 hurricane season underway, now is the time to consider purchasing Business Interruption Insurance. If you are unfamiliar with how it can protect your business after a major catastrophe, your bad faith insurance claim lawyers at Millin & Millin would like to inform you about how it can be the protection you need to save your business.
Please consider the following information.
Business interruption insurance is an additional rider that you can purchase from your commercial property insurance provider or other specialized agency. There are various types of this insurance which cover a variety of different situations and damages including:
Extended and contingent coverages can be purchased as additional riders of regular business interruption insurance.
What your policy covers is dependent on the business assets that you want to protect. Every policy will be unique to a business owner’s specific needs. As always, it is important that you read through the policy and have a solid understanding of the coverage.
Generally, business interruption insurance can cover and protect:
Coverage is triggered when an incident - as specified by the contract - causes damage to your business and extends for however long as determined by the policy. Please be aware that business interruption insurance is limited and any losses that exceed those limits are the responsibility of the business owner(s).
There are a number of factors that play into the amount of coverage your business needs. Consider the following when determining what level of coverage you may need:
In an area like the Rio Grande Valley, which can experience a major disaster like a hurricane, it is important to have coverage that will protect your business for more than a few days.
However, even with the right commercial property insurances in place, your insurer may attempt to underpay or outright deny a valid claim. When this happens, don’t allow bad faith insurance tactics to derail you or your business. Depend on the responsiveness of the bad faith insurance legal team of Millin & Millin to get you the justice you deserve when seeking your rightful compensation after a natural disaster like a hurricane.
Contact us today at (956) 631-5600 to get the legal representation you need. Millin & Millin serves the greater McAllen metro area and the whole Rio Grande Valley.
Texas had a rough 2017 hurricane season with Harvey causing major damage to southeast Texas and the Houston metro area. Unfortunately, forecasts from North Carolina State University and Colorado State University are predicting another above-average season for 2018.
It’s important for residents living along the Gulf Coast and in the Rio Grande Valley to begin preparing now for the 2018 hurricane season, which starts June 1st. While residents of deep south Texas have been fortunate to avoid any major storms in some years, all it takes is one hurricane to devastate your home and property.
Don’t wait until it’s too late.
Failing to have the right insurance coverage in place can leave you with a financial burden that may be too difficult to carry. Your insurance claims lawyers at Millin & Millin want to remind you to check your homeowners insurance coverage now in order to protect yourself from any future hurricane-related damages that might occur.
Remember - “An ounce of prevention is worth a pound of cure.”
If you aren’t sure what exactly to look for in your insurance contract or what types of insurances you need to protect yourself during this hurricane season, please consider the following.
Flood Coverage
During Hurricane Harvey, only 30% of home damages were effectively covered. Property analytics firm CoreLogic found that the vast majority of homes in the path of Hurricane Harvey did not have adequate flood coverage, which means homeowners had to cover more than 70% of damages out of their own pocket.
While you may have general homeowners insurance, you should be aware that most coverages do not offer protection from flooding. Failing to have this protection can leave you in an extremely difficult financial position. Do not wait to protect yourself.
Flood insurance may be purchased through your insurance company or another agency participating in the National Flood Insurance Program (NFIP). If you cannot find a provider, please contact the NFIP Referral Call Center at 1-800-427-4661.
Coverage for High-Value Personal Items
Another coverage that can prove to be vital for protecting your valuables is a high-value personal possession rider. For items such as jewelry, artwork, collectibles, and other types of expensive personal property, this type of coverage works well.
There is generally an appraisal process in order to properly value the item and to ensure you are paying sufficient premiums for it. If you are afraid of having a family heirloom or luxury item become damaged, obtaining high-value personal item coverage should be a top priority.
Temporary Living Expenses
Depending on the type of home insurance coverage you have, temporary living expenses may be fully or partially covered. A few of these expenses covered include:
Thoroughly check your policy to see if any temporary living expenses are covered and for how long.
Pay Attention to Your Deductible
Even with the right amount of coverage, too high of a deductible can still leave you in financial trouble. You’ll need to do a review of your policy and make sure that you have enough money set aside to pay the deductible in case of an emergency.
If you are unable to pay the deductible right away, it can become more challenging over time to obtain the benefits that are rightfully yours.
Protecting Your Family
Protecting your home and property is of utmost importance but we know that keeping your family safe is your number one priority. Luckily, there is usually enough warning time to prepare your family for a hurricane. Some of the most important steps you can take to protect your loved ones include:
You’ll also want to make sure that all important documents, including your homeowners insurance policy, are in a safe place where they cannot be destroyed.
If you are having to file a home insurance claim, it’s likely due to the fact that you just dealt a terrible event. Having to deal with the bad faith tactics of an insurance company is the last thing you need on your plate during this time.
Depend on the responsiveness of the insurance claims legal team of Millin & Millin to get you the justice you deserve when seeking compensation after a natural disaster like a hurricane.
