Can I Sue an Insurance Company for Denying My Claim?

The role of an insurance company in Florida in supporting our personal financial stability is often underestimated; until it vanishes. We regularly see the havoc caused when insurance does not respond as intended and advise on how to put it right. Insurance company litigation in Florida is a common issue. Insurers may try to avoid paying for the claim of the insurance, leaving you with no coverage at all, or may try to reduce the benefits of the insurance policy you have taken. 

Dealing with injuries, death of a loved one, property, or some other mishappening is hard enough. So, if you are forced to battle your insurance company on top of all that, it is easy to feel overwhelmed.

Fortunately, there are a number of laws that are designed to protect consumers like you, and it is not uncommon for a policyholder to sue his/her insurer.

Read on to learn about the basics of suing your insurance company in Florida for denying your claim or other misconduct.

Reasons an Insurance Company May Deny Your Claim

An insurance company has countless reasons to deny your claim - some legitimate, some not. Mentioned below are some of the most common reasons:

Lack of coverage: The insurance company may argue that your claim is not covered by your insurance policy. This is why it is essential for you to examine your policy’s exclusions section to understand what is not covered. Ambiguities in the policy are judged in favor of the policyholder, not the insurer.

Application insurer: An insurer may claim that you have made certain misrepresentations on your original application that nullify the coverage of your policy.

Claim errors: Do not forget to check your policy to see all the requirements for notifying the insurance company for a claim.

Insurance fraud: Submitting false or exaggerated claims can amount to insurance fraud, carrying civil and criminal consequences.

When Can I Sue the Insurance Company for Denying My Claim? Every insurer has a number of obligations to its policyholders. They must abide by the terms of the contract, act in good faith, and avoid all unfair trade practices. Their duties differ from state to state, since the insurance industry is regulated at the state level. Nevertheless, these obligations typically need the insurance company to refrain from the following:

• A delayed and wrong investigation into the claim
• Refusing to pay a claim where the liability is reasonably clear
• Failing to approve or deny a claim within a specified time
• Denying the claim with no or little explanation
• Failing to defend you in a liability lawsuit where at least one of the claims is potentially covered by your liability policy

If you believe your claim was denied and your insurer does not seem to be caring, you can hire an attorney and sue your insurance company.