Under normal circumstances, insurance companies pay policyholders money for damage resulting from claims covered under the terms of their policies. That settlement amount is designed to be fair and should help you cover the cost of any repairs or replacements your property may need. But some insurance providers may end up not wanting to settle in the first place. If your insurance company is one of them, your Michigan property insurance claims attorneys want you to know what to expect. Let’s take a look at what happens if your insurance company doesn’t want to settle your claim.
Understand the Common Reasons for Not Settling
Before you can figure out the next best steps, it’s important to understand why insurance companies may refuse to settle a claim. Here are some of the most common reasons:
- The damage isn’t covered under your policy. If you filed a claim for damage to your property, the insurance company will investigate to make sure that the incident that caused the damage is covered under your policy. If it’s not, they may deny your claim outright.
- You filed the paperwork incorrectly. Insurance companies rely on paperwork and documentation to assess your claim. If you submit paperwork with errors, they may deny your claim.
- You didn’t answer their questions. Insurance companies may have additional questions for you during the claims process. If they believe you didn’t answer them thoroughly enough or you don’t respond to their inquiries, they may refuse to settle.
These are just a few of the reasons insurance companies may refuse to settle. However, just because your insurance company doesn’t want to settle doesn’t mean you won’t get a settlement. There are things you can do to increase your chances of getting a fair settlement.
You Can Escalate the Claim
If an insurance provider isn’t settling your claim and you know you’re covered under the terms of your policy, don’t hesitate to escalate the claim with your insurance provider. Speak with your insurance agent and let them know that you’d like to talk to their regional manager. If your insurance agent is the reason the claim hasn’t been settled, this may be enough to get them to do the right thing. If the delay is due to something else in the process, escalating the claim with a manager can trigger a new review of your claim with more senior team members. This may increase the chances of receiving a fair settlement.
You May be Able to File a Lawsuit
If your insurance provider refuses to settle, you may be able to file a lawsuit against them, especially if your claim is covered under the terms of your policy. Your insurance provider is legally required to honor claims for covered events. Failure to do so means you may have a case against them.
Speak With an Experienced Property Insurance Claims Attorney
Every case is unique, so be sure to speak with a Michigan property insurance claims attorney about your situation. They’ll be able to assess your case and help you decide if suing the insurance provider is in your best interest. If they don’t think you have grounds for a lawsuit, but still have grounds for an appeal, they may be able to represent your interests with the insurance provider.
Often, partnering with an attorney can be all you need to get the ball rolling and for the insurance company to reach a settlement.
How Fabian, Sklar, King & Liss Can Help
At Fabian, Sklar, King & Liss, we believe that all valid insurance claims should receive a fair settlement. Our team has experience holding insurance companies accountable and will be happy to represent your interests, whether you need help with an appeal or want to sue for bad faith practices. Contact us today to schedule a free consultation.