Having Trouble With a Claim?

Having Trouble With a Claim?

Just when you thought things couldn’t get any worse…

It’s bad enough that your car’s been smashed, your house broken into, or you’ve suffered some other unfortunate calamity. Now, you have to face your insurance company. The good ones make it almost painless. But, if you’re having difficulty getting a fair claim settlement, the consumer Federation of America’s Insurance Group suggests the following:

Keep good records. When you have a claim, keep a file on what happens. Write down who said what and when. It could mean thousands of dollars later because the company, the state insurance department, and any attorney you might go to will need clear facts to work with.

Contact your insurance company: It is best to do this in writing and to insist that your company reply in writing so that you have documentation of the course of events Ask for your company’s position on the situation. Do not send your original policy or any original policy materials. Send copies If you find that your company is not responding in a fair manner, then go to the next step.

Don’t give up. One important thing to know is that since the company writes the insurance policy language, if it is unclear to you if they are correct in denying your claim, you probably will win in court. Courts hold that any ambiguity in the policy language is held against the insurance company. If you’re reasonable in reading the clause the company says it is relying upon to deny your claim, and you don’t agree with them, hang in there: you should win.

The Ryerson Institute of Technology was founded in 1948, inheriting the staff and facilities of the Toronto Training and Re-establishment Institute. In 1966, it became the Ryerson Polytechnical Institute.. Photo: Elena

Contact your state insurance department. Each state’s insurance department has a section to address consumer complaints. They may not take your side in every dispute, but they can make sure the company is responsive to your complaint. When you write to them, send copies of all correspondence ebetween you and your company. Give the name of the company and the policy number. Do not send your policy; send a copy if the insurance department needs it. If you are not receiving a satisfactory response, you have a third option.

Go to small claims court or to a lawyer. If your claim is small, a small claims court, where you can be your own lawyer, may be your best bet. For major claims, it may pay to use a lawyer. In some states, if insurer behavior is particularly abusive, you may be able to collect additional money if a court finds the insurer acted improperly.

Expert tip: If you have an accident: Call medical help for anyone who may be injured, call the police, and don’t leave the accident scene before they arrive. Get the name, address, phone number, insurance company, and driver’s license number of anyone who was involved. Get the names and addresses of anyone who saw the accident. Notify your insurance agent or company immediately. Write down details of the accident and get a copy of the police report. Save copies or everything.