Home insurance helps protect one of your most valuable assets, your home. If something were to go wrong, generally, your next move would be to file a homeowners insurance claim. However, there are some cases when filing a claim may not go as smoothly as you would like.
Unfortunately, there have been several cases of insurance companies denying home insurance claims filed for fraudulent reasons. You may also be surprised to learn that it is illegal for insurance companies to avoid paying out insurance claims for an extended period of time. However, there have been multiple lawsuits filed against insurance companies alleging that they acted in bad faith. This is especially true in the wake of natural disasters that have caused significant damage to people’s homes. Here is a look at some common reasons why home insurance companies may choose to deny or delay the payment of your homeowners’ insurance claim.
- Interest Fees: Perhaps your insurance company is delaying your claim because they want to collect more interest from you. As the days pass, the longer the money that you are supposed to be reimbursed sits in your insurance company’s bank account, the more interest they collect on the money. This may seem relatively harmless to you, but imagine how quickly profits can accumulate for the insurance company when they are handling hundreds and thousands of dollars worth of unpaid claims.
- Change of Attitude: Your insurance company could deny your homeowners’ insurance claim because they hope you will eventually give in and accept what they are offering. Delaying a claim leaves you vulnerable. You don’t have the money you need to make the repairs and keep moving forward with your life. By delaying your claim, some insurance companies believe that you will become desperate to find a solution to the problem. To get things moving in the right direction again, you may accept a lower payment than what you are owed.
- Potential Retaliation: While this may be hard to imagine, it’s possible that your insurance company is acting out of spite. If your insurance company believes that you have caused problems in the past, they may be angry. This could be their way to get back at you during your lowest moment. Your homeowners’ insurance claim may be delayed because the insurance company has a personal grudge against you. You may face an uphill fight to receive the money that you are entitled to.
- The Company Doesn’t Have the Funds: If your home suffers severe damage due to a fire or a natural disaster such as a hurricane, the insurance company may be delaying your payout because they don’t have the money. Smaller companies will be left searching for ways to cover the payments that they are required to make. Since they are left in an uncomfortable position, the insurance company may opt to pay some claims and avoid paying larger ones until they can figure out a solution to their money issues.
Consult with Jack Stone Insurance Agency
If you believe that your insurance company has been acting in bad faith, it’s important to take action immediately. By acting swiftly, you can still receive the compensation that you are entitled to. If you have any questions regarding filing a homeowners insurance claim, contact the experts at Jack Stone Insurance Agency. We are ready to assist you with all your coverage needs.