When an insurance company denies your claim, delays payment, or undervalues your coverage, the experience can be financially and emotionally draining. At 59Law.com, we understand that insurance disputes often come at the worst possible time, after a serious loss or unexpected hardship. Whether you’re dealing with a homeowner’s policy, health insurance, auto insurance, or a business interruption claim, our team is here to stand up for your rights. Contact a dedicated Rockland County civil litigation lawyer from 59Law.com for assistance with your insurance dispute today.
Common Types of Insurance Disputes in Rockland County
Insurance disputes can take many forms, and understanding what kind of dispute you’re facing is the first step toward resolving it. Not all disagreements with insurers are simple matters of miscommunication, many involve significant financial consequences or bad faith practices.
- Denial of Valid Claims: One of the most frequent issues policyholders face is the outright denial of a valid claim. This can happen across many types of insurance policies. For instance, a homeowner’s insurance carrier may claim the damage is excluded under the terms of the policy, even if the cause of the damage is clearly covered. In other cases, health insurers may deny medical procedures deemed medically necessary by your doctor.
- Delayed Payments: Some insurers may not deny your claim, but they drag their feet for weeks or even months, often without a clear reason. New York law requires insurance companies to promptly investigate and pay valid claims. Long, unexplained delays can amount to bad faith and warrant legal intervention.
- Underpayment of Claims: Another common tactic involves the underpayment of legitimate claims. For example, in auto insurance cases, the insurer might undervalue the cost of repairs or the replacement value of a totaled vehicle. In property insurance disputes, the insurer might lowball the cost of necessary repairs or cleanup efforts.
- Business Interruption Insurance Disputes: For small businesses in Rockland County, business interruption insurance can be vital. After events like fires, storms, or even certain public health emergencies, business owners may turn to their policies to cover lost income and operating expenses. Unfortunately, insurers often dispute these claims by invoking narrowly defined exclusions or ambiguous contract terms.
- Bad Faith Insurance Practices: In some cases, the insurer’s conduct crosses a legal line. If a company knowingly or recklessly disregards your rights under the policy, fails to conduct a proper investigation, or misrepresents policy terms, they may be acting in bad faith. In such cases, you may be entitled not only to the value of the claim but also to additional damages.
Laws and Protections for Policyholders in New York
Insurance companies operating in New York are governed by a mix of state statutes, regulations, and case law that outline how claims should be handled. These protections are especially important in dispute situations, and knowing your rights can make a significant difference.
- New York Insurance Law § 2601: Unfair Claims Settlement Practices Act: This statute is central to insurance disputes in the state. It prohibits insurers from engaging in unfair practices such as failing to act promptly on claims, not providing reasonable explanations for denials, or refusing to pay claims without a reasonable investigation. While this law does not provide a private right of action (meaning you can’t sue under it directly), it sets the standard for fair behavior and can support a bad faith or breach of contract claim.
- Prompt Pay Law: For health insurance disputes, New York’s Prompt Pay Law requires health plans to pay undisputed portions of claims within 30 to 45 days. Failure to do so may entitle providers, or patients in some cases, to interest penalties and possibly other remedies.
- Breach of Contract and Bad Faith Litigation: If an insurer violates the terms of its contract with you, you may sue for breach of contract. In especially egregious cases, where an insurer’s behavior is intentionally deceptive or malicious, you may also pursue a bad faith claim. Though New York courts are cautious in awarding punitive damages in such cases, they are not impossible if the facts support a finding of egregious misconduct.
- Duty of Good Faith and Fair Dealing: All insurance contracts include an implied duty of good faith and fair dealing. If an insurer violates this duty by frustrating the policyholder’s right to receive the benefits of the contract, legal action may be appropriate, even in the absence of outright denial.
What to Do if You’re in an Insurance Dispute
Disputing an insurance company’s decision doesn’t mean you’re being combative, it means you’re standing up for your rights. If you believe your insurance company is treating you unfairly, here are a few practical steps to take immediately:
- Keep a record of all communications with your insurer. This includes emails, letters, phone logs, and claim documents. Take photos of damages and get written estimates whenever possible.
- Under New York law, insurance companies must explain in writing why a claim was denied or reduced. This explanation can help your attorney assess whether the insurer is acting within its rights.
- If you’re offered a quick settlement that seems too low, don’t sign anything until you’ve had a legal review. Once you accept a payment and sign a release, you may waive your right to future compensation.
- Speak with a Rockland County insurance dispute lawyer. Every policy is different, and every dispute involves a unique set of facts. At 59Law.com, our attorneys analyze your policy language, review the timeline of your claim, and determine whether your insurer has violated your rights. We negotiate directly with the insurance company and, if necessary, file suit to get you the compensation you’re owed.
Contact a New York Insurance Dispute Lawyer Today
Insurance companies have significant resources and teams of lawyers working on their side. You deserve someone in your corner who understands the legal landscape and how to fight back effectively. At 59Law.com, we represent Rockland County residents and businesses in a wide range of insurance disputes. Don’t let a denied or undervalued claim become your financial burden. Contact us today for a consultation, and let’s hold your insurer accountable, together.
