Navigating the Negotiations: 5 Tips for Resolving Insurance Claim Disputes

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We can spend thousands of dollars over a lifetime paying for insurance policies to protect us in the event of an accident or incident. So when the time comes for us to ask for that protection, we don’t expect any problems. We’ve paid for a service, and wish to receive it – what could be more simple?

Sadly, that’s not everyone’s experience. Insurance companies sometimes refuse to cover a particular incident or don’t provide the level of protection we believe we’re entitled to. While insurance claim disputes can be overwhelming, the tips in this article should assist you in solving them.

Consult the Experts

Jumping right into legal action might not be the first step you plan to take when managing an insurance claim dispute. Instead, you may prefer to align yourself with specialists who have experience in insurance dispute resolution. These insurance experts can take the lead and work on your behalf when you don’t have the time, energy, or experience to manage the claim yourself.

With their years of experience, they can work hard to access your entitlements within your insurance coverage. That might not always be possible when you try to fight the claim dispute alone.

Read Through Your Policy Documents

Insurance policy documents can be dozens of pages long and hard to read. As a result, not all policyholders will take the time to comb through them before buying a policy. This can mean that you’re not covered for the events or items you believe you are.

If your insurance company refuses to deliver the expected results, examine your policy documents carefully. You can then know with certainty that your insurance company has wronged you by failing to provide the service you paid for.

Discuss Your Findings with Your Insurance Company

If your policy’s wording has reaffirmed your position, and you’ve received a second opinion from an insurance expert, it’s time to discuss your findings with your insurance company. When you explain that your claim has been unfairly rejected, you’ll have their policy wording to back up your viewpoint.

Resolving the dispute can sometimes be as straightforward as your insurance company reversing its decision. However, that doesn’t always happen. Some insurance companies will stand firm.

Set Up Arbitration

You’ve tried your best to settle a claim via direct communication with your insurance company, and you haven’t experienced success. Now, it’s time to enter arbitration. Arbitration describes a formal discussion with your insurance provider and an impartial arbitrator. The arbitrator’s goal is to find a solution that suits both parties.

A successful arbitration process can save expensive legal fees and time spent in courtrooms. As a result, arbitration is often a preferred option for insurance companies and policyholders alike.

Proceed with Litigation

Arbitration may be the preferred option, but it doesn’t always end with a satisfying solution. When no agreement can be found, it can often be in your best interests to proceed with litigation. This will generally require legal experts to guide you through the litigation process and represent you in court.

When all the facts have been presented, the court will make a legally binding decision that resolves the claim. In most cases, the outcome can depend on the strength of either side’s evidence.

Resolving insurance claim disputes can be a frustrating process, especially when you’re trying to do it alone. However, with insurance experts by your side, you’ll be guided through the common processes described above. Hopefully, you’ll then achieve the outcome you deserve.