Do I Need an Insurance Claims Lawyer?

If you have ever had to file an insurance claim, you know how frustrating and time-consuming the process can be. From filling out complicated paperwork to negotiating with insurance adjusters, it is not surprising if you feel overwhelmed.

When you have suffered a significant loss, you expect your insurance company to be there for you. After all, its promotional campaigns and glitzy marketing materials promise to give you peace of mind and support you in your time of need. However, insurance companies are the same at their core, no matter what coverage they offer you. They may try to avoid paying your claim at all or offer you less money than you otherwise deserve under the terms of your policy.

Whether you need an insurance claims lawyer depends on the facts and circumstances of your situation and the type of insurance you have. You may not need an insurance claims attorney for every kind of situation. For example, your claim may not be for a large amount of money, or you may not expect difficulty from the insurance company.

Hiring an insurance claims lawyer can give you added credibility with the insurance company and increase the number of legal options available if you have difficulty with your claim. You may find that the insurance company is leaving you with no choice but to hire a lawyer to pursue the compensation you deserve under the terms of your policy.

An experienced insurance claims attorney understands insurance policies and can guide you through the legal language. They can analyze your policy to determine what kind of coverage you have a right to and ensure that the insurance company does not take advantage of you.

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The Insurance Company Feels Like the Power Is on its Side

Insurance companies have what you want – they have the money necessary to pay for the damages that you have suffered. Although you have a binding contract with them, insurance companies believe that both time and the balance of power are on their side when you file a claim. They may use any tactics necessary to press the advantage they think they have over you. Even though you have legal rights from a binding contract, insurance companies are banking on the fact that you may not know that simple fact.

Either way, hiring an insurance claims lawyer for your case can equalize the balance of power between you and the insurance companies. You can approach them on an equal footing, knowing that you have a contract that requires the insurance company to pay your claim in full.

Why Insurance Companies May Deny Claims

Insurance companies may try to avoid paying your claim in the first place. Reasons that they give for denying claims altogether include:

• The damage does not fall under the policy’s coverage
• The damage is falls under a specific policy exclusion
• There is insufficient documentation of the loss
• The actual claim itself does not meet the requirements of the policy
• You did not take adequate mitigation measures after a loss

Regardless of the reason for denying your insurance claim, you were likely not expecting it to happen. Claim denials are a shock, especially when you need the money, forcing you to take legal action against the insurance company to pay the claim.

When Should I Hire an Insurance Claims Lawyer?

Sometimes, you will hire an insurance claims lawyer before you file anything with the insurance company. You may have a high-stakes claim for a large amount of money and cannot afford anything to go wrong. Your insurance claim can represent your financial future and your ability to rebuild or replace your loss. Insurance companies know that and may try to play hardball with you during the claims process. They understand that you need money sooner rather than later, and they feel like the balance of power in your claim favors them.

You may consider hiring an insurance claims attorney in the following circumstances:

• You have a complex insurance policy with many exclusions.
• You have a potentially significant insurance claim.
• Your track record with the insurance company shows it will be difficult.
• The insurance company is making very low settlement offers, and there is little hope it will raise its offer to an acceptable level.
• Your insurance claim requires extensive documentation, and the insurance company is seeking more to make you an offer.

Insurance Companies Fear That a Lawyer Will Hold Them Accountable

When insurance companies see that you have hired an insurance claims lawyer at the outset of the process, they will most likely treat you differently. You may receive a more prompt response to your claim in the first place, and your initial settlement or coverage offer may be more competitive than otherwise. They will pay you more respect because they know someone can hold them accountable.

Litigation costs cause insurance companies complications because this money is something they have to spend on top of claims settlements. Litigation expenses come out of the insurance company’s bottom line. Although insurance companies complain about high litigation costs, it does not make them act more reasonably in the claims process. Nonetheless, if they know there is a higher probability that you might file a lawsuit against them, they may be more open to negotiations.

Bad Faith Lawsuits Against the Insurance Company

You may even have a potential cause of action against the insurance company itself based on its conduct in your case. If you are a first-party claimant, you can file a bad faith lawsuit when the insurance company has acted egregiously in response to your claim. Bad faith can include things like the following:

• Failure to process and respond to your claim promptly
• Not providing a clear explanation for why the insurance company has denied your claim
• Misrepresenting the terms of your policy to deny your claim
• Unreasonably denying a claim without a valid reason
• Not performing enough investigation before denying your claim
• Unreasonably delaying payment for your claim

Insurance companies fear bad faith lawsuits because they must pay you damages above and beyond what your claim is worth. You will obtain damages directly from them, and they may have to pay you punitive damages, which can be a considerable amount of money. When insurance companies see that you have an insurance claims attorney, they may treat you differently. They know that you understand your exact legal rights and that you are unwilling to put up with any misconduct. Of course, if you believe the insurance company has acted wrongfully, you can always hire an insurance claims attorney to act directly against it. With a skilled attorney by your side, you can level the playing field and increase your chances of obtaining a fair settlement. They can advocate for your rights and fight for the compensation you deserve.

How an Insurance Claims Lawyer May Help You

An insurance claims attorney can help you in many ways. Their efforts can lead to a more significant recovery for you, and they may even secure you compensation in the first place if the insurance company refuses to pay your claim.

Seeing that you have an insurance claims lawyer can make the insurance company act differently toward you. Insurance companies will realize that they cannot push you around because you have someone on your side who can fight back when they overstep your bounds.

Here is what an insurance claims attorney can do in your case:

• Review the terms of your policy to help determine if the insurance company should cover your claim
• Review any potential exclusions to your coverage to see if they can potentially address your situation
• Work to estimate the amount of losses that you suffered that your claim may cover
• Prepare your claim to submit to the insurance company
• Handle all communications with the insurance company so you do not have to speak with the adjuster
• File a lawsuit if the insurance company tries to deny your claim or it will not pay you enough money

You may already be dealing with a difficult situation on account of your loss. You may need to take time to address your emotions and stress, and having to talk to an insurance company can complicate your life even more. Hiring an insurance claims lawyer means that they will handle all of the details of your case, allowing you to focus on other things and relieving you from some of the stress of dealing with the insurance company. They can alleviate the stress of dealing with insurance companies and give you peace of mind from knowing your case is in capable hands.

Insurance Claims Lawyers vs. Public Adjusters

Some public adjusters offer services to policyholders to help them recover money from the insurance company. In some cases, people think they can hire a public adjuster instead of an insurance claims lawyer. However, there are reasons why you want to consider hiring a lawyer to help with your case.

After suffering a significant loss or if you have a complex claim, you should always assume you must go to litigation with the insurance company. At the very minimum, you will at least need to have a credible threat of filing a lawsuit because that is a language that insurance companies understand and fear. They want to avoid spending the money to hire an insurance defense attorney because their cost will exceed the amount that the insurance company needs to pay for your claim.

If you hire a public adjuster, they will get paid a percentage of your claim if you recover money. Yet, a public adjuster cannot help you if you need to file a lawsuit against the insurance company. Instead, they will have to turn the case over to an insurance claims lawyer, and both professionals may then need to get paid a portion of your insurance recovery. Paying two people will further reduce the money available to cover your damages.

How Do Insurance Claims Attorneys Get Paid?

When you hire an insurance claims lawyer, they only get paid for the time they spend on your case if you receive money in connection with your claim. Insurance claims attorneys work for you on a contingency basis, meaning they receive payment if you win your case. When it comes down to a choice between potentially getting nothing for your claim or paying a part of your settlement to a lawyer, you should gladly take the latter option.

If you do not win, you do not owe your insurance claims lawyer anything for their time and services. When you are in a position where you have to hire an insurance claims lawyer, getting some of your compensation is certainly better than receiving nothing at all. Further, if your insurance claims lawyer gets the insurance company to raise its settlement offer drastically, it makes the attorney’s fees worth the cost.

Hiring an insurance claims lawyer can be invaluable when dealing with the overwhelming world of insurance claims. From deciphering policy language to negotiating with insurance adjusters, they can provide guidance and support. If you are wondering whether you need an attorney for your insurance claim, the answer is likely yes. Do not hesitate to reach out to an experienced lawyer who can help you obtain the compensation you deserve.

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