A major part of risk management when owning property involves obtaining sufficient insurance coverage. This coverage could include protection for real estate, a vehicle, and even your health. Therefore, if you suffer a loss, it is wise to file a claim under your insurance policy.

Sadly, these companies profit by collecting premiums but refusing to pay claims at every opportunity. Unfortunately, claim denials often lead to disputes between individuals or businesses and insurance companies.

A Katy insurance claims lawyer may be able to help you when an insurance company has denied a claim. Likewise, a skilled injury representative could evaluate the terms of an insurance policy, work to come to a negotiated settlement, or file a lawsuit in civil court that alleges a breach of contract.

Why do Insurance Companies Deny Claims?

At the most basic level, disputes between insurers and policyholders can arise over whether a policy covers a particular loss. For example, a commercial real estate protection policy may not appear to cover flood damage. Insurance companies may also claim that their policy does not cover losses due to crime.

More nuanced reasons for claim denials involve internal workings at the insurance companies. For instance, an insurer may allege that they refuse to issue payment due to supposed fraud when a party applied for protection. Another common tactic is to assign the policy to another insurance company, shifting the responsibility to pay a claim. A capable attorney in Katy could evaluate why an insurance company denied benefits and work to get a policyholder the payments they deserve.

Insurance Claims as Examples of Broken Contracts

Obtaining an insurance policy binds a policyholder and a provider into a contract. The insurance company agrees to pay all valid claims in exchange for the receipt of premiums. However, a failure to do so when the policy requires a payment may be considered a breach of a contract.

Sometimes, an insurance claim denial is a reason to begin litigation. A hardworking lawyer in Katy could take the lead in pursuing insurance claim lawsuits. Legal counsel could collect information about a policy and the event that led to the filing of a claim.

That said, it is vital to act quickly after denying an insurance claim. Texas Insurance Code § 541.162 says that parties looking to sue insurance providers for a breach of a contract have two years from the date of the breach to bring the case to court. In many cases, filing a suit against an insurer could convince them to pay out a claim.

Let an Insurance Claims Attorney in Katy Protect Your Finances

Receiving payment through a successful insurance claim can mean the difference between security after a disaster or financial ruin. Fires, floods, theft, and industrial accidents are all examples of cases where an insurance company should provide payment under their policies. Sadly, insurance claim disputes are common and often result in litigation.

A Katy insurance claims lawyer may be able to help you to stand up for your rights after an insurance company denies your claim. Additionally, legal team members could review the policy’s language and investigate the incident that led to the loss to prove that the policy should provide benefits. Reach out today to learn more and find out how an attorney could represent you.