What if my insurance company refuses to pay my claim?

What if my insurance company refuses to pay my claim?

Sam Friedman (Editor-in-Chief, National Underwriter, Property & Casualty Edition) gives expert video advice on: Why won't my insurance company pay for damage caused by a flood?; Why won't my insurance company pay for vermin damage or extermination? and more...

If an insurance company denies your claim you have a number of options. Firstly, most insurance companies allow you to appeal a rejection. There's a grievance process in place. Perhaps all you have to do is provide additional documentation, clear-up some misunderstanding and the claim is paid. However, if the claim is still rejected and you still believe it should be covered under your policy, you could hire an attorney to pursue this for you and if it comes to this, people even bring these cases to court. You could actually sue your insurer for the coverage you think you are owed under the policy. Last but not least, if you feel you have a grievance with an insurer you should report it to the state insurance department. Insurers are regulated by the states and each state has a department that keeps track of the market conduct of each of the insurance companies. If you check with your local insurance department and find that your particular insurer has a history of denying claims arbitrarily and a lot of litigation against them that could support your claim against the insurance company if you end up going to court.