4/7/2019 | Posted by Teisha Powell
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Many people believed because they purchased homeowner's insurance that things are just going to go according to plans. Most people do not recognize, that Homeowner's Insurance, in fact all insurance company are making a hefty profit. What does that mean? It means the less money an insurance company pays out, the more profit the insurance company would like to report. This article discusses why homeowner's insurance company deny claims. Well, let me just name 3 reasons.
1. Insurance company deny claims because most people won't challenge the insurance company. Like I said before, the insurance companies are making a profit and to do so, it must not pay out too many claims. This is why insurance companies deny your claims. It does so, because most people will not challenge the insurance company. As such, the less claims that are paid out, the more money the insurance gets to keep.
2. Insurance company denies claim because the policies are hard to read- Most Homeowner's Insurance will deny a person's claim and then cite the homeowner's policy for the reason to deny this claim. If you ever read your insurance claim, you will understand just how complicated the policy can read. No wonder the insurance company wrote this policy. That way when it deny your claim, you won't challenge it.
3. Homeowner's won't retain lawyers- Under Florida law, you can hire an attorney on contingency to fight your insurance claim. Contingency means if you do not get paid then the lawyer will work for free. Since hiring an attorney to fight an insurance claim is free, then why aren't you hiring one if your insurance company denies your claim? And this my friend is why the insurance makes a bag of money. The insurance is betting that you, the homeowner, won't hire an attorney to handle your claim once denied. This is a mistake on your part because there will be a time when your claim is denied and the only way to get paid will be to sue the insurance company. You will not be able to sue the insurance company without an attorney. You should not be deferred from hiring an attorney because the attorney doesn't cost a dime unless you win. So look into it.