Steps for settling an insurance dispute

On Behalf of | Feb 23, 2022 | Insurance Bad Faith

After their home or vehicle sustains damage, people may file a claim with their insurance company. However, the company could either deny the claim or offer a low settlement. In these situations, people could consider filing a dispute.

Nerd Wallet says that claimants may want to begin the dispute process by reviewing their policy. The policy clearly lays out what kind of damage the insurance company will cover, as well as how much money a settlement could include. Going through the documentation can help people understand where their situation stands.

Working with the insurance company

Once the claimants understand what the policy entitles them to, they can reach out to the insurance company. They could ask a representative to explain the company’s decision. They may need to point out where the settlement or denial does not align with the policy. In some situations, people could ask the insurer to send out another representative to review the damage. A second opinion may help the insurance company see the validity of the claim.

Seeking outside help

Sometimes, people may not be able to find a solution by working with their insurance company. The Kentucky Department of Insurance says that people may need to file a complaint. They should usually put together a written document explaining the problem. The complaint should include the name of the insurer, as well as the claim and policy numbers. If people have supporting documentation, such as photographs, emails or letters, they should submit copies. Once the Department of Insurance has all this information, a representative can begin an investigation.

Even after these steps, an insurance company could refuse to work with the policyholder. In this situation, people may need to consider other options.