An insurance claim will not be paid out if the type of damage that occurred is not the type that is covered under the policy.
Residents of Key West may experience severe weather related to hurricane winds, flooding, and excessive rain. When this happens, property owners will need to contact their insurance provider and try to get money for repairs through making a claim. However, there are often problems with this process and insurance companies have been known to deny claims for many different reasons. If anyone suspects that their insurance provider is acting illegally, they can contact an attorney to review their situation and take further actions if necessary.
Bad faith claim denials
This is one of the most serious breaches of the relationship between the insurance company and a customer. A bad faith claim denial happens when the provider essentially makes up some kind of excuse to not pay out a legitimate claim. This is obviously illegal, and people who have experienced bad faith denials can file lawsuits and take other actions. Some insurance companies have been known to engage in large scale bad faith denials to save money.
It is possible that an insurance company receives a claim and simply does not process it as required, or they take too much time. This is problematic for the claimant because they need their settlement money to make repairs to their home in a reasonable time, especially if the damage is serious. Most companies will have a time limit where the claim expires and needs to be refiled, or if too long has passed they will no longer process an old claim.
Either the person filing the claim or the insurance provider may make some kind of clerical mistake. Unfortunately, if all of the documentation is not prepared and filed properly, this will cause the claim to be denied or at least temporarily rejected. Anyone who is about to file their claim should check to make sure everything is filled out properly and that the insurance companies policies are being followed.
Coverage is not applicable
An insurance claim will not be paid out if the type of damage that occurred is not the type that is covered under the policy. For example, property owners in Florida should be aware that flood damage caused by rain or during a hurricane will only be covered if a separate flood insurance policy was purchased. Something like homeowner’s insurance will not cover flood damage. Anyone who has questions about what their policy covers should contact their provider and look into purchasing additional types of coverage if necessary.
More information from local insurance attorneys
USAttorneys.com is a web directory that lists lawyers who handle insurance claim issues as well as other aspects of the law. People living in Key West can use the site to find that legal help they need.