When Are Companies Legally Able To Deny Your Insurance Claim?

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.

Circumstances That Can Cause Your Claim To Be Denied

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:

  • • Your claim is fraudulent
  • • You violated the terms of your insurance contract
  • • Your policy does not cover the 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.

Get the Opinion of a Professional if Your Insurance Claim Is Denied

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!

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