Someone who invests in insurance coverage should be able to trust that their policy can provide protection when they need it. Texas law and federal insurance industry statutes require that insurance companies uphold their policies in good faith.
Unfortunately, many people find that the opposite is sometimes true. Insurance companies employ tactics that can complicate and delay insurance claims. They may try to frustrate consumers or trick them into giving up during the claims process. Mistakes that people make when handling sizable insurance claims can result in lasting financial implications in some cases. The following are some of the biggest and most common mistakes that people make when filing sizable insurance claims.
Delaying a written response
The law in Texas requires that insurance providers respond to claims in a timely manner. The law also limits how long policyholders have to take action if they disagree with the company’s decision. Frequently, those frustrated by a denied insurance claim or other bureaucratic challenges created by the insurance company put off responding officially to the matter. Waiting too long could sometimes prevent someone from getting the coverage they deserve.
Apologizing to insurance employees
Some people naturally have a habit of apologizing when they believe they may have caused inconvenience for others. Sometimes, insurance companies may manipulate what someone says to weaponize it against them. An apology can seem like an admission of fault in certain circumstances and could affect the outcome of someone’s claim. Other innocent statements, possibly made in response to leading questions, could potentially lead to claim denial or a lower payout. If the insurance company requires that someone provide a recorded statement about their claim, they may want to have legal representation during that process for their protection
Accepting a settlement offer too quickly
Anyone filing a sizable claim has likely had some noteworthy financial challenges. Repairing damaged property, for example, can cost tens of thousands of dollars in some cases. Policyholders eager to use their coverage sometimes make the mistake of accepting the first settlement offer made by the insurance company. If the offer is below the policy limits, it may be possible to counter that initial offer with a more reasonable figure.
People need to know what the total cost of their claim could potentially be and prepare for a company to try to trick them into accepting less than that. Ultimately, having the right help can make a big difference for those negotiating a sizable insurance claim.