How Do Insurance Claims End Up in Litigation?

You’ve paid your homeowners insurance provider on time, in full, for years. When you experience what is obviously (to you) a covered loss, you rightfully expect that your insurance company will be there for you. Many insurance claims are settled for policyholders in a satisfactory way, but it doesn’t always work out for other policyholders. If you and your insurance company don’t see eye-to-eye on the merits of a claim or its settlement, you have a dispute that could end up going to court.

Filing a Lawsuit

If you’ve ever read an insurance policy, you know how difficult it can be to understand. Policies are written that way on purpose. The mission of insurance companies is to make a profit, which is easier the less they pay out on claims. As a result, these providers frequently take advantage of opportunities to insert vague or complex language into the policies themselves. A few ways this causes litigation-spawning insurance disputes include:

  • Disagreements between the provider and policyholder over whether a loss is actually covered by the policy.
  • Disputes over how a covered loss should be compensated (actual cash vs. replacement cost).
  • Arguments over the applicability of certain provisions of the policy.
  • Disagreements over how much a claim is ultimately worth.

Are There Steps You Can Take Before Filing a Lawsuit?

There usually are actions you can take before jumping to litigation. Your policy may even require you to use your provider’s internal dispute resolution procedure before filing suit. Appraisal is a common method of alternative dispute resolution. In Florida, mediation of your insurance claim is sometimes a possibility. While a lawsuit is generally your last resort, you shouldn’t hesitate to use this legal tool if you believe you’ve been denied what you deserve.

On What Grounds Can You Sue Your Insurance Company?

In Florida, a breach of contract action is the general method of litigating an insurance claim. A bad faith lawsuit may also be appropriate, though there are additional hurdles that must be cleared before proceeding to this step. 

You Need An Attorney

Just about every reasonable person knows when they’re being treated unfairly by an insurance company. What’s much more complicated, though, is proving it in court. Insurance disputes involve endlessly complex laws, statutes, and case law that requires the help of an experienced lawyer to handle. Alvarez Law Group is uniquely prepared to handle your insurance dispute in and out of court so that you are delivered justice. Initial consultations for insurance disputes and personal injury claims are free; get in touch with our firm today to set up yours.

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