Steps to Sue Your Insurance Company
Introduction ď ˝
Sometimes insurance companies do not act in the most upstanding manner. If you have an insurance policy in place, an event happens giving rise to a claim on that policy, and the insurance company does not act as it is supposed to you may have to resort to litigation to get the money you deserve.
Steps to Sue Your Insurance Company
If it unreasonably delays payment of your claim If it tries to settle your claim for an unreasonably low amount of money If it unreasonably denies your claim Contact your insurance company Obtain a copy of your signed insurance policy Make sure your loss is covered under the terms of the contract Research the insurance law of your state File a complaint with the appropriate court Go to trial
If it Unreasonably Delays Payment of Your Claim ď ˝
Insurance companies are in the business of making money. The longer an insurance company takes to pay a claim, the longer it can hold on to the money it owes you and use that money for its own purposes and you might find yourself in a position where you really need the money.
If it Tries to Settle Your Claim for an Unreasonably Low Amount of Money ď ˝
Once you make a claim, you and your insurance company will engage in a negotiation process, where the insurance company tries to talk you down from the amount you request to cover your losses.
If it Unreasonably Denies Your Claim ď ˝
There are many tactics your insurance company might use in order to not pay your claim, and many reasons it might give you for denying payment. It might say that it was your fault you suffered a loss, that your particular policy doesn't cover the exact circumstances of your loss, that you didn't do enough to prevent the loss, or simply that your claim is too high.
Contact Your Insurance Company ď ˝
Your first step should always be to contact your insurance company to try to resolve your dispute before threatening litigation. Contact your insurance company and talk with your insurance agent to see if you can work the issue out on your own.
Obtain a Copy of Your Signed Insurance Policy ď ˝
You should have a copy of the insurance policy in question filed in your records with your other important documents. If you do not have a copy, or have somehow misplaced or lost it, contact your insurance provider and request a copy of your insurance policy.
Make Sure Your Loss is Covered Under the Terms of the Contract ď ˝
Insurance contracts are generally very specific about what is and is not covered. As you are reading through your policy, check to see if the facts surrounding your loss match with the types of loss your insurance company has contractually agreed to cover in your policy.
Research the Insurance Law of Your State ď ˝
Insurance law varies widely state to state, and you will want to be sure that you are aware of what your state's laws say in relation to insurance claims before engaging in litigation. There are many resources online dedicated to helping you understand the insurance laws of your state of residence
File a Complaint With the Appropriate Court ď ˝
The first step of any lawsuit is filing a complaint with the appropriate court. Since insurance law is based mostly on state law, it is likely you will be in the state trial court for the county in which you live.
Go to Trial ď ˝
On the day your case is set for trial, you, your attorney, your insurance company, and its attorneys will appear in court to argue your case. Your attorney will present the facts of your case against the insurance company, and the insurance company will try to argue why it has not broken the law.
What is Insurance Bad Faith? ď ˝
Insurance bad faith is a legal term of art unique to the law of the United States that describes a tort claim that an insured person may have against an insurance company for its bad acts.
Who I Am‌. ď ˝
Alexander Begum is a founding shareholder of the Begum Law Group LLC that based in San Antonio who specializes in Personal Injury claims and corporate litigation.