Insurance Disputes: When to File A Lawsuit?

Homeowner insurance allows people to recoup their losses in case of an adverse event such as fire and lightning, wind and hail, or any other natural disaster which may cause damage to their property.

In 2016, property damage accounted for 97.1% of insurance losses, as per the stats provided by the insurance information institute. During the insurance claim, disputes are not uncommon occurrences.

There are various instances where the homeowner and the insurance provider reach an impasse over the amount of settlement. The dispute may be about denial of the claim by the insurance provider or perhaps a lower amount of payment than anticipated by the homeowners.

If you happen to be in such a dilemma and are unable to obtain a home insurance settlement, acquiring the services of an experienced insurance claim lawyer can be highly beneficial for your case.

When to File A Lawsuit

It is important to note that once you have settled the claim, you cannot file a lawsuit against your insurance provider as most settlement agreements contain a clause that prohibits you from filing an action against them. This also releases them from the liability of making any further payments related to that claim.

However, there are some instances where you may be able to file a claim after settlement. For instance, there is an error in interpretation or perhaps the document was arbitrarily written and does not restrict you from pursuing legal options.

That being said, the probability of these mistakes is quite marginal, thus it is always advisable to initiate an insurance lawsuit as soon as you believe that your insurance company is not treating you fairly. Consulting a skillful insurance claim lawyer and filing a claim before reaching a settlement ensures that all legal options are at your disposal.

Things to Consider Before Filing a Lawsuit

While it may seem an enticing option to directly sue an insurance company if you are dissatisfied with their settlement offer, there are some aspects that you need to consider. For instance, you must review your insurance policy to understand the extent of coverage and the limits attached to it. Moreover, you should contact your insurer to seek further clarification and note it down for future references.

Make sure to remain calm and polite with your claim adjuster while conversing about your settlement and refrain from showing hostile behavior such as giving threats of legal actions. The insurer, in that case, will most likely reject to re-evaluate your case and let their legal counsel do the talking.

If your insurance provider does not make an adjustment, then you may contact a seasoned insurance claim lawyer to start legal proceedings to obtain the amount of compensation that you are rightfully entitled to obtain from your insurance provider.

If you wish to know more about this subject, consult an experienced insurance claim lawyer by contacting the Law Offices of John V. O’Connor at 262-671-1685 for a free consultation.