Both state and federal law offer an array of protections for insurance policyholders, requiring insurers to issue policies with specific language to protect their customers’ rights. Unfortunately, carriers often attempt to deny responsibility for valid claims, leading to extensive insurance disputes and litigation. Below are a few of the provisions which most commonly result in disputes and legal battles.
3 Common Sources of Insurance Disputes
1. Incontestability Clauses
Incontestability clauses prevent insurers from reviewing your original policy and denying valid claims based on minor mistakes or misinformation submitted by the insured. While insurers can dismiss a policy based on intentionally fraudulent information, the law gives insurance companies only a short period to contest certain errors. Generally, it’s assumed that if an issue didn’t present a problem in the years before the claim was filed, it doesn’t provide grounds for a denial.
2. Appraisal Clause
If you disagree with the insurer’s valuation of your losses, the appraisal clause requires both you and the insurance company to submit your information to a qualified third party. The appraiser generally settles these insurance disputes with a legally binding decision that both sides must accept.
3. Notice of Claims
Most insurance policies require policyholders to notify the insurer as soon as they believe they may need to file a claim. However, the extent of damage from a covered incident may not be immediately apparent, which sometimes results in delays. Insurance disputes often arise when carriers claim the policyholder failed to notify them in a timely manner.
Whether you’ve been involved in an accident or an insurance dispute with your own carrier, you can rely on the Prevatt Law Firm PL to represent your interests, both in mediation and in the courtroom. They’ve been serving North Florida for over 30 years, building a reputation for expertise in a wide range of insurance and business law situations. To discuss your case and schedule a consultation, call their office at (386) 362-7979.