Denial of Insurance Lawyer in Maryland
A Maryland bad faith denial of insurance lawyer can help with claims including life insurance denial, home insurance denial, liability denial, property insurance denial, and jewelry insurance denial. A bad faith insurance denial occurs when an insurance company wrongfully rejects a claim and refuses to pay out policy coverage on a legitimate claim. Policy holders and beneficiaries have legal rights and can fight back using experienced legal representation after a wrongful claim denial.
Insurance is purchased to act as a kind of financial safety net. In the event of a loss or disaster, insurance protects our property, families and loved ones. The proceeds from the policy can pay off loss-related expenses and provide peace of mind during uncertain times while improving financial security.
Your insurance policy is a contract. In return for the premiums you pay, the insurer will pay a certain amount in the event of a loss that is covered. Coverage is based on the terms agreed to in the insurance policy. Each policy includes various terms and conditions which can be complex and interpreted differently. Unfortunately, dishonest insurance companies often deny legitimate claims in bad faith. An experienced bad faith insurance denial attorney can help obtain coverage through policy analysis when an insurance claim is wrongfully denied.
If you are searching for a Maryland denial of insurance claim lawyer near me to bring claims or help sue your insurance company for denying your claim, call Whitney, LLP.
Whitney, LLP can provide an experienced denial of insurance lawyer to bring claims or help sue your insurance company for a bad faith claim denial in Maryland. Policy owners and beneficiaries have legal rights and can fight back to get the coverage they are contractually entitled to.
Common Insurance Claim Denials
Read about each of denial in greater detail below.
- Life Insurance Denial
- Home Insurance Denial
- wind and hail damage
- water damage
- fire damage
- Liability Claim Denials
- Denial of Property Insurance Claims
- Natural Disaster
- Jewelry Insurance Claim Denials
- Lost and Stolen Jewelry Claims
The last thing most people want to do when dealing with a catastrophic personal or financial loss is battle an insurance company in a denial of coverage dispute. If you are struggling with a claim denial, you may feel overwhelmed and not sure where to start.
Bad Faith Insurance Claim Denial
When an insurance company violates or fails to comply with the terms of their policies by failing to pay claims promptly or otherwise acting in bad faith, you can contest the denial.
An insurance claim is denied in bad faith when an insurance company refuses to provide coverage that the policy holder or beneficiary is entitled to. Dishonest insurance companies often refuse to pay valid claims and instead try to pocket the premiums without paying out coverage. Bad faith insurance denials are a standard practice for many large insurance companies. A 2022 Reuters article discusses how bad faith insurance denial are on the rise.
Insureds and beneficiaries have legal rights and can fight back against wrongful denials, excessive delays and outright refusals to pay coverage. Whitney, LLP’s bad faith insurance denial attorneys have experience making insurance companies pay claims.
Insured’s Legal Rights for Wrongful Claim Denial
When an insurance claim is denied in bad faith, the policy holder or beneficiary has legal rights and can enforce policy coverage. Insurance companies are known for their bad practices and will often pay once an attorney gets involved and begins to carefully examine the claim and policy terms.
Denial of Life Insurance Claim
Losing a loved one is traumatic, regardless of whether that death came after a long illness or was unexpected. Life insurance is purchased to provide financial security and peace of mind. If you are experiencing a denial of life insurance claim, our attorneys can fight on your behalf and bring claims or sue the insurance company for life insurance coverage.
Understanding Life Insurance Policies
Life insurance policies offer the promise of financial security to survivors by providing a cash benefit that can help pay funeral expenses, cover debts, and replace some or all of the policyholder’s income after their death. There are multiple types of policies, but the two most common are term life and whole life.
Term life is a policy that offers affordable coverage for a specific term, such as five or 10 years. Whole life, as its name suggests, offers coverage for your whole life. This is a costlier policy but the coverage remains throughout your lifetime, and the death benefit usually remains the same while the policy builds a cash value.
No matter what type of life insurance policy was purchased, the contracts require payment of the claim if the conditions for payment have been met.
Why Are Life Insurance Claims Denied?
The idea behind life insurance is that once you pay your premium, you have coverage. However, these policies are not necessarily straightforward. Each policy contract may come with various contingencies that can affect coverage, and each company has its claims-handling process, which can further affect your coverage.
When your claim is delayed or denied, it can add further pain and emotional upheaval to an already difficult time. A qualified attorney can help you explore your options including brining a claim or suing the insurance company for denying a life insurance claim
The most common life insurance denials are based on:
If the policy lapsed due to late or unpaid premiums, death benefits may be denied. This is a common cause for claim denials.
Life insurance is issued primarily based on the policyholder’s age and health. If the policyholder lied or misrepresented these factors, the policy may not be canceled but the size of the benefit may be reduced by the amount of the additional premiums owed.
Other misrepresentations can include failing to disclose additional life insurance policies, failure to disclose minor ailments, misrepresenting income, and misrepresenting immigration status, which can also affect the size of the benefit.
Deaths that occur outside the scope of the policy may be considered contestable circumstances. These can include deaths that occur as a result of illegal or self-inflicted acts. They may also include deaths that occur during military service, acts of war, aviation, dangerous hobbies, or certain types of health perils that are specifically excluded from the policy.
The contestability period is typically limited to the first few years of the policy and offers protection to the insurer against fraud and deliberate misrepresentations.
Insurers generally require a death certificate at a minimum to begin the claims process and may request additional documents for verification. If the family or heirs are unable to provide the necessary paperwork and supporting documentation, the insurer may delay or deny the claim as a documentation failure.
Dealing with Denial of Life Insurance Claim
A claim denial letter can be shocking and frightening, particularly if you were depending on the benefits to replace the policyholder’s income or to help cover funeral expenses. The insurance company is required to abide by the terms of its policy contract, and there are laws in place to protect Maryland life insurance beneficiaries. These laws require the insurer to act in good faith and avoid unfair trade practices.
Obligations to policyholders can vary according to the locality but typically include:
- A prompt and complete investigation into the claim,
- Payment of claims within reasonable and specified timeframes, and
- Clear and appropriate explanations for any denied claims.
Claims should also not be denied for application misstatements beyond the period of contestability.
If your claim has been denied unfairly or inappropriately, Whitney, LLP’s life insurance denial attorneys can help. We can help you determine the most appropriate course of action to protect your financial interests, whether beginning with a letter or lawsuit.
Denial of Home Insurance Claim
Homeowner’s insurance is designed to protect homeowners from losses related to extreme weather events, fire and smoke, theft, vandalism, falling branches or trees, and other catastrophes. Standard policies typically cover both the home and the property contained inside the home, such as furniture, clothing, and electronics.
Homeowner’s insurance can bring you peace of mind and help you feel safe and secure when the worst happens, but if your claim is denied, you may be left trying to replace what you lost on your own. When you are dealing with a bad faith homeowner’s insurance claim denial, you can fight back for the coverage you are entitled to.
Common Home Insurance Claims
Homeowners can file claims after unexpected damage or catastrophe. Common home insurance claims include:
Wind and Hail Damage
Thunderstorms, tornadoes, hurricanes, and other large storms can cause significant damage to a home, leaving dents in siding, tearing away shingles, and breaking windows. Storm-related claims account for more than a third of all homeowners insurance claims, and the average claim is more than $10,000.
Frozen pipes, flooded basements, flooding washing machines, and other unexpected water-related issues can cause serious damage to a home and account for a substantial minority of homeowners insurance claims.
For many people, a fire is a worst-case scenario. Fires destroy property, memories, and lives, and they account for more than 70,000 homeowners insurance claims annually, a fourth of all claims, and add up to nearly $80,000 per claim.
Break-ins and theft are responsible for a smaller amount claims thanks to the increase in video monitoring systems and improved security in modern homes.
Vandalism, malicious mischief, and other property damage that is not related to theft are surprisingly common, accounting for more than 7 percent of insurance claims in recent years.
Why Are Home Insurance Claims Denied?
A homeowner’s claim can be denied for failure to pay premiums or misrepresentation. Forbes published an article setting forth additional reasons insurers may deny a seemingly valid claim, including:
- Having the wrong coverage or inadequate coverage
- Failing to maintain the property properly
- Waiting too long to file the claim
- Failing to document the damage properly
Having an experienced denied insurance claim attorney on your side can help ensure a legitimate claim is not denied.
Denial of Liability Claims
Other common claims include liability claims. This can be just about anything that occurs on your property, such as a child breaking an arm on the trampoline in your backyard or someone being injured in your pool. Liability insurance may also cover some types of injuries that occur off your property, such as if your dog gets loose and bites a neighbor, who then requires medical attention. A liability claim can save the policy holder tens of thousands of dollars, or more, in personal losses and protect against damages from a lawsuit.
Insurance companies often want to deny liability claims for injury or death on a policy owner’s property because these claims are expensive. However, insurance companies can be forced to provide liability coverage after making a bad faith denial.
Denial of Property Insurance Claim
Property insurance offers additional coverage for property owners. Property protection or liability coverage will reimburse you in the case of theft or another party if they are injured on your property.
Types of Property Insurance Claims
Several types of policies can be considered property insurance, including homeowners insurance, renters insurance, and flood and earthquake insurance. In the event of a disaster, your policy will reimburse you either the replacement cost or the cost of the damage, depending on your policy.
Most property insurance policies will cover theft, vandalism, and a variety of weather-related issues, including wind, hail, snow, ice, lightning, and some storms. Property insurance will also typically provide coverage for fire and smoke damage. An experienced property insurance lawyer can often overcome a contested denial.
The most common property insurance claims include:
Kitchen fires are the top cause of house fires, especially those caused by unattended cooking. A cooking fire can rage out of control in seconds, overwhelming not only the kitchen but the home within minutes.
The loss of your personal property can also bring financial hardship and emotional trauma. Alarm systems and appropriate lighting can deter robberies while insurance can help restore what was taken.
Tornadoes, thunderstorms, ice storms, and other natural disasters can leave a trail of damage in their wake. Most personal property insurance policies will cover some types of storms, but certain types of disasters may not be covered or may require a rider for coverage. These can include floods, mold, mine subsidence, and earthquakes.
Denial of Lost or Stolen Jewelry Insurance Claim
Jewelry insurance claim denial is a common problem after an insured loses jewelry or is victim of a jewelry theft. Jewelry insurance is usually included in a homeowner’s policy, but standalone policies are often purchased. Jeweler’s Mutual Insurance is one of the largest jewelry insures, and provides a brief introduction to their claim process on their website. Stand alone policies are often purchased to cover expensive watches, rings, necklaces, diamonds, or to cover expensive jewelry collections.
Jewelry claim denials often occur when an insurer states that they do not believe the insured’s account of how the jewelry was lost, damaged or stolen. When a jewelry claim denial occurs, the claimant should be prepared provide whatever evidence they have to support their claim.
Claims also arise when a dispute arises over the valuation over lost or stolen jewelry. Whitney, LLP has experience in claims involving negligent appraisals of jewelry.
Lost and Stolen Jewelry Claim Denial
It is often impossible to prove how a piece of jewelry was lost or when it was stolen. Of course, if a person knows exactly where they lost it, or who stole it, they would be able to take action and recover it. However, this is the type of round and round game that bad faith jewelry insurance denials are based on. Trying to force an insured to prove something that cannot be proven, or to provide evidence of something that did not happen, is unfair and is a bad faith practice.
When a jewelry insurance claim is denied in bad faith, the insured has legal rights and can fight back.
How to Sue Your Insurance Company for a Denied Claim
The insurance contract will set forth what claims are covered, and when, and state policy exceptions or exclusions. Whitney, LLP’s experienced insurance claim denial attorneys can carefully review insurance contracts, determine if any language is in violation of the law, and help insureds and beneficiaries get the coverage that was paid for.
The insurer has only a limited amount of time in which to either approve or deny a claim for losses or damages, but they can receive an extension under certain circumstances. If your claim is denied, you have the right to dispute the denial but must do so quickly and within the allowable time frame.
Steps to dealing with a bad faith insurance denial can include:
- Gather evidence, submit a strong appeal with supporting documentation, and request additional review by an insurance claims manager or public adjuster;
- File a complaint with the Maryland Insurance Administration; and
- File a lawsuit. It can be necessary to file a lawsuit to force the insurance company to pay, especially on larger claims. Filing a lawsuit can be very effective when the insurer refuses to pay.
Denial of Insurance Claim Lawyer – Whitney, LLP
If you believe that your insurance company has wrongfully denied your claim, our attorneys can help you fight back against a bad faith denial of insurance and obtain the coverage that was paid for.. Call Whitney, LLP if you are looking for a Maryland denial of insurance claim lawyer near me.
Bad faith practices are prohibited by law. Insurance companies are bound to the insured party by the terms of the insurance contract and must act in good faith when a legitimate claim is filed. If the insurance company denies a legitimate claim, they can be held accountable.