Most insurers don’t want to pay out–and it’s not hard to understand why. If they can wriggle out of making a payment to you, that puts them in a much better position financially.
Of course, it’s a disaster for you. As a paying customer, you were relying on them being honest and holding up their end of the bargain. After all, the whole purpose of taking out the cover in the first place was to protect you financially if something goes wrong.
As a regular person, it is hard to know what to do in situations like these. You aren’t always sure what the rules are or whether there are any options.
Fortunately, this guide is here to help. It runs through some tips you should follow when insurers don’t want to pay out to ensure you receive the money you’re owed.
Check Your Policy Terms
The first step is to check the terms of your policy. Make sure that you understand why the insurer is rejecting your application.
The wording is critical here. You need to make sure that the situation you reported is the one that actually happened.
For example, let’s say you have bicycle insurance. Most of these policies will demand that you keep your bike in covered, locked sheds, not out in the open. Therefore, you can’t just leave it on a rack on a public street and expect coverage. However, if your bike was locked somewhere safe and still stolen but the insurer is refusing to pay out, you can point out that you still have a basis to make a claim.
If you get into trouble on this point, then provide evidence. Taking photos of the facilities you used is helpful, as long as they meet the policy’s terms.
Document Everything
At the same time, you want to document everything. Make sure you keep a copy of all your conversations with the insurer so everyone knows where they stand.
If you can record phone calls on your device, that’s even better. This way, you have a clear record of everything that was said so there’s no doubt on your side of the story.
If there’s damage involved (such as forced entry), take a photo of this, too, along with any repairs. Make sure you note the dates and the times, and the names of the service professionals you used.
Be particularly careful when it comes to repair and medical bills. The more documentation you have here, the stronger your claim will be.
File Your Claim Quickly
During this process, you also want to ensure that you file your claim quickly. Taking your time can lead to issues and some insurers may say that you’ve waited too long.
Usually, your policy documents will tell you how long you have to make a claim. Most insurers will give you a few months, but some will require you to act faster than that.
Furthermore, if you delay, it can prevent you from getting the money you’re owed. Taking your time is a problem in that sense.
Be Persistent
Another approach is to be consistent. Insurers will sometimes try to invalidate your claim based on superficial reasons. For example, they might hold up the claim on a technicality you can prove is false.
If they do this, see it as part of the process and consider using a different insurer in the future. Once you point out their mistake, they will usually process your claim and hand out the money. However, they may look for anything that reduces the likelihood of a payout to see if it sticks.
Consult With A Legal Professional
You may also want to go to a legal professional to discuss your situation. I like to use an insurance lawyer near me whenever issues like this come up and start causing problems.
Attorneys often have a clear overview of the law and how it relates to your policy. They can also compare what your policy says to the facts on the ground to see if you’re entitled to a payout, even if your insurer refuses to play ball.
This sort of representation is critical in high-value disputes. For example, suppose your home insurer is refusing to pay out after a house fire. Damages could be excessive if they are telling you that you need to cover them yourself.
The same goes for auto claims. Insurers may say that you are ineligible, even if you followed your policy’s stipulations to the letter, or your insurer has minimal evidence against you.
