Investing in insurance offers security, shielding us from the exorbitant costs associated with accidents and disasters beyond our control. We rely on insurance carriers to uphold their end of the bargain when we need it the most.
Unfortunately, insurance companies first priorities will always be their own interests. They are for-profit entities, and they do not make money by paying out claims. As a result, companies often employ tactics designed to exploit customers that are not as familiar with the confusing and archaic system that they themselves have created. Consider these tips the next time you have an issue with your insurance company.
1. Be wary: Be cautious and skeptical when you are dealing with your insurance company. You should recognize that your insurance company isn’t necessarily on your team, even if you are one of their policyholders. Make sure than your are closely familiar with the terms of your policy long before an accident occurs, so that you are aware of your rights with respect to your coverage.
2. Be careful what you say: When speaking with a claims adjuster, clarify whether the conversation is being recorded. If so, consider that the claims adjuster or insurance representative has a greater incentive to trap you into saying things that could undermine your claim. Particularly in this situation, do not minimize your injuries. If you are caught on tape saying that your injuries are not causing you pain, those statements will likely be used against you when the company calculates a settlement offer.
3. Do not sign any releases without contacting a lawyer: Sometimes, you will be offered a settlement in exchange for agreeing to not pursue any further legal action with regard to your personal injuries. Refrain from signing one of these agreements prior to consulting with a licensed legal professional. A cash settlement offer may seem appealing at the time, but it is not worth forfeiting full compensation for your injuries.
4. Be aware of the insurance company’s responsibilities: Texas law recognizes that your relationship with your insurance company is unique. You are not in a position of equal bargaining power with the company, and insurers have total control As a result, the law imposes a duty of good faith and fair dealing on the industry. This duty requires insurers to have a reasonable basis for denying a claim or delaying payment of the claim. If you feel that your claim has been denied improperly, you might be entitled to contractual or tort damages resulting from the company’s conduct.
5. Don’t underestimate hail damage: Some individuals underestimate the effect that hail damage can have on the value of your home, particularly if the damage is not especially noticeable. Insurance companies prey on this impulse by low-balling or denying hail damage-related claims. Hail damage can seriously impact your home’s resale value. Remember that your insurance policy is a contract, and that the insurer is obligated to fulfill its duties.
If you feel that you have been mistreated by your insurance company, consult with a licensed attorney that will ensure that your rights are enforced.
