If you own any property, you might have several insurance products, and they give you the peace of mind that when things go wrong you are covered.
Not all home, car, health, and accident insurance policies are created equally, though. In some cases, you might feel like you are not being treated fairly by the company, and they try to avoid paying you the money you deserve based on the contract. Below you will find a few tips on when it is worth to challenge the decision made by your insurance company.
Car Total Loss
Image via Flickr
If your car is written off after an accident, you are likely to lose money, especially if you had credit, even if you get the current value paid to you. It is important that you get a second opinion and an independent report, as you might be better off getting the damage repaired privately, instead of having to pay thousands of dollars extra to your car finance firm.
Small Print and Misleading Contract
If your insurance company uses terms that are not easy to understand for people who are not working in the industry, you can challenge their decision to deny your claim. You will not automatically have a case, but it is a good idea to get in touch with an insurance lawyer to find out more about your chances of getting the decision changed by the court. You are more likely to be taken seriously if you seek legal representation.
If you are offered a low insurance settlement for a break-in, or an accident involving your car, you will have to start putting yourself first. Does the amount allow you to rebuild your life and replace your valuables? If your answer is no, it is time to consult with a legal professional, or write directly to the insurance company listing your reasons why you are asking them to reconsider their offer.
Not Calculating Certain Costs
In some cases, the company will ignore some elements that are important for you. For example, if you become a victim of a burglary at home, you might get compensation for the items taken, but not for getting trauma counseling and specialist treatment. Point out these elements to your insurance company’s representative, and negotiate the amount, so you can move on with your life without having to worry about money.
Denying the Claim for Natural Disasters
Image via Geograph
Whether you live in your property or rent it out, not checking what type of natural disasters and events are covered is a deadly mistake. You need to read the small print before you take out the policy. In some cases, insurance companies get a fund from the government to pay out on certain claims related to floods, earthquakes, and hurricanes, but they don’t like telling their clients about this money.
Whether your insurance claim has been rejected by the company, or you were offered a low settlement amount, you always have a choice. Challenge the decision and write a logical argument why you believe you deserve more.