When you purchase insurance, you expect it to protect you when something goes wrong. You pay your premiums faithfully, trusting that if you ever need to file a claim, your insurance company will honor its end of the agreement. Unfortunately, that isn’t always how things play out. Many people find themselves in difficult situations when their valid claims are denied without good reason, leaving them with mounting costs and no clear path forward. If you find yourself in this situation, you may wonder if you can sue your insurance company for the compensation you deserve. In some cases, you can. Read on and reach out to a knowledgeable Rockland County insurance dispute lawyer from 59Law.com to learn more. Here are some of the questions you may have:
What Are My Rights When an Insurance Claim Is Denied?
Under the law, insurance companies are required to act in good faith when handling policyholders’ claims. This means they must review your claim honestly, investigate fairly, and provide a legitimate explanation if they decide to deny coverage. When they fail to do so, their actions may amount to what’s known as “bad faith.” Examples of bad faith include unreasonably delaying a claim, denying payment without a valid reason, misrepresenting policy terms, or failing to properly investigate.
If your claim was denied and you believe the insurer didn’t act fairly, you have the right to challenge that decision. The first step is to review your insurance policy carefully. Policies are often full of dense, technical language, but it’s important to identify the exact reason your claim was denied and whether it aligns with your policy terms. If something seems off, you may want to contact an attorney who handles insurance disputes.
When Can I Sue My Insurance Company?
Not every denial is grounds for a lawsuit. Sometimes, a claim is denied for a legitimate reason, such as when the policy doesn’t cover the specific type of loss or damage. However, if your insurer acted unreasonably or violated the implied covenant of good faith and fair dealing, you may have a valid cause of action.
A lawsuit can be filed to recover the amount you were owed under the policy, along with additional damages in certain cases. For example, if the denial caused significant financial harm or emotional distress, or if the insurer’s actions were particularly egregious, a court may award extra compensation beyond the value of your claim.
Keep in mind that insurance companies often have extensive resources and experienced legal teams. They may attempt to justify their denial with complex reasoning or obscure policy provisions. Having a knowledgeable civil litigation lawyer on your side can make a significant difference in these situations. Your attorney can assess the facts, gather evidence, negotiate with the insurer, and, if necessary, file a lawsuit to pursue what you are rightfully owed.
If you have additional questions or would like to speak with a knowledgeable and dedicated attorney about your case, please don’t hesitate to contact 59Law.com for an initial consultation today.