My Insurance Has Been Denied: Now What?

Insurance is an essential part of life. Home, auto, health and life insurance are many times taken for granted. After all, if a person has spent years paying premiums it's assumed it will always be there when it's needed. But what happens when it's not? Customers have several options when an insurance company refuses to pay a claim or even provide coverage.

ASK FOR A LETTER OF EXPLANATION

Whenever a company refuses to pay a claim or decides to cancel a policy customers are entitled to a letter of explanation, often called a denial letter. This written explanation allows customers to determine if the company has a valid reason for its decision and the reasoning behind it. This letter often can help a customer address the situation in the most appropriate fashion possible.

ASSESS THE SITUATION

If a claim has been turned down it's a good idea to read over the insurance policy to make sure whatever happened is covered. For example if a customer has an auto accident but doesn't have collision coverage he can't file a claim for damage sustained to his car. If a policy is being dropped look over medical records or property to make sure the company has a valid reason and if there are ways to solve the problem.

CONTACTING AN AGENT

Once a customer believes he is entitled to compensation or to renewal of coverage it's time to contact an insurance agent or company representative. This can be done in person, by phone or online. Social media has been gaining momentum as a preferred method of contact recently because of the number of businesses with Facebook or Twitter accounts. It's also been popular because of the quick response that is usually generated from this technology. Issues with claims are best handled by contacting an adjustor while policy issues need to be discussed with the agent. This allows for an opportunity to present evidence that will show the company its error and resolve the problem.

KEEP IN TOUCH

An insurance company's decision may not be final but sometimes can feel that way. Once a decision is reached it takes a long time for it to be reversed. After a customer submits evidence to prove their argument it's imperative to keep in touch with the company. Follow up by contacting agents and adjustors and their supervisors and managers if needed. Customers need to be polite and patient, but also persistent in these situations.

REGULATORY AGENCY

If a customer still believes the company is wrong after going through all the proper channels he can appeal to his state's department of insurance. Each state has one of these to oversee that state's insurance agencies. This department is responsible for receiving customer complaints and conducting investigations to ensure customers are treated fairly and to hold insurance agencies accountable for their actions. So the next time there is a problem with insurance remember many options exist to help consumers.