You cannot avoid the constant and catchy advertisements and commercials that flood the television, internet and social media. These advertisements want prospective customers to think the insurance carrier will always be there in your time of need. People purchase insurance to protect themselves and their property in case of a disaster. Although the insurance carrier may project a commitment of always being there for you, that is not always the case.
There are many types of insurance that individuals buy. For instance, there is:
Each of these types of insurance are ideally designed to protect you if you sustain a loss. Each insurance policy has terms and conditions that regulate the relationship of the insurer and the policyholder. Put differently, the insurance policy is a contract. If the loss is a covered loss as defined in the insurance policy and no exclusions in the policy applies, the loss should be covered and the insurance carrier should tender the benefits due and owing to you.
In the instance where you sustain a loss in which coverage should be extended and the insurance carrier illegitimately denies your claim, you have the ability to bring a claim against your insurance company to collect the benefits you deserve. Further, insurance carriers may not outright deny your claim, but may offer you substantially less than what your loss is worth. If that happens to you, you may also have a potential claim against your insurance carrier. Unfortunately, this conduct by insurance carriers is not as uncommon as you may think.
The denial and the conduct of the insurer when handling the claim can dictate the types of claim(s) you may potentially possess against your insurance carrier. Depending on the facts of your specific situation, common claims against insurance carriers are breach of contract and bad faith. As mentioned, what claims you ultimately possess is largely fact and case specific.
In brief, remember if your insurance carrier wrongfully denies your claim or offers you less than what you deserve you are not without recourse. It is important that if your insurance carrier treats you unfairly to contemplate contacting an attorney to see if you have potential claims against your insurance carrier. To that end, it is also essential that you are proactive in contacting an attorney sooner rather than later to evaluate your potential claim.