Insurance Settlement Claim Denied - How a Lawyer Can Help

Denials of settlement compensation for the claim against another driver or the person that caused damage to a home are serious issues when the policyholder needs the money to recover from the economic and physical damage caused. In these instances, the policyholder will need a lawyer to assist through the claim.

The Denial of the Claim
When the insurance carrier denies a claim for a settlement to the policyholder, this is usually because of administrative inconsistencies or incomplete documentation when the individual has a valid claim. The person will need to look over the paperwork to see what is missing or is incorrect such as areas affected, injuries sustained and who is at fault for auto accidents. For administrative matters, the carrier may have a problem with employee verification or someone placing the necessary materials in the wrong place. Other denials occur because of bad faith or an attempt to deny a settlement even when the claim is valid. The company may hope that the policyholder does not hire a lawyer.

Bad Faith by the Insurance Company
There are many instances where the insurance company will show bad faith in a valid insurance claim where a settlement is necessary and valid. This is possible through a lack of communication, contact or by denying the claim without further information. The business may refuse to take calls from the policyholder or deny all details connected to the incident. Even if the claim is legitimate and has all necessary documentation and all details given as required by the company, the carrier may still deny the claim unless a lawyer requests a real reason why the denial was given.
The Demand Letter
One of the methods to seek a settlement with an insurance company or other entity is through a demand letter. This is an important document that should contain various provisions and what the person seeks. The paperwork should also contain why the compensation is necessary along with why the settlement is valid. If the company acts in bad faith, this letter is usually the initial stage in litigation against the insurance company. If the carrier does eventually communicate, it is possible to settle the conflict outside of the courts and reach a beneficial resolution. The lawyer can help ensure that the language is appropriate for the situation.
Intimidation of the Lawyer
Services provided by a lawyer often start with intimidation against the insurance company when the policyholder either receives a denial or a low offer that cannot sustain the policyholder after the damage occurs. The lawyer can communicate the details and explain the need for a greater settlement offer. It is possible that the legal professional can negotiate a higher number or argue the case in court if the matter proceeds beyond negotiations. Many opposing parties will bow to the intimidation factor that a lawyer provides by communicating the matter legally and appropriately. With sufficient evidence, the insurance company has little choice but to seek an agreement.
Negotiation a Settlement
Generally, the insurance carrier will want to avoid a lawsuit because of both the costs and time. However, if the settlement could provide the policyholder with a large sum, the insurance company may want to tie up the matter in the courts to intimidate the plaintiff and attempt to settle the matter outside the courts with a far lower offer than the individual should acquire in normal processes. The lawyer may negotiate a significantly larger number, but depending on all factors in the case, this may still not become the true amount owed to the policyholder.

No matter what type of accident or damage caused, the policyholder will often want to settle the matter away from litigation because of the costs, time and energy it takes to proceed through a civil suit. Through avoiding this process, he or she will consult with a legal professional on how to acquire the best settlement amount through negotiations with the insurance company. The lawyer will use the evidence of the claim and all factors relevant to the case to pressure the insurance company into paying out what the policyholder should receive.
Legal Support for Insurance Claim Denials
If the claim is valid even with a denial, the policyholder will need legal support to either negotiate a settlement or to pursue the matter through litigation. Either course will require the services of a lawyer to better improve the odds of a valid offer for compensation.