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How To Make Sure Your Insurance Policy Pays Out What It Should

By Jason Markum

Insurance companies are notorious for trying to undercut policyholders when it’s time to pay out. Sometimes they will flat-out refuse to pay, and sometimes will offer a wildly low settlement. The problem is, most people just take it. They figure that there is no way to fight the billion-dollar insurance industry.

It’s really too bad, because people have very very strong rights when it comes to insurance policy payouts and in most cases you hold all the cards. You’ve entered into an agreement with the insurance company and you’ve held your end of the bargain; they are required by law to hold their end.

Sure, they’re gonna try everything under the sun to pay out as little money as possible… but don’t let them get away with it. In this article I’m going to explain a few tips that you can use to make sure you get paid what you deserve by the insurance companies.

The first thing that I have to be absolutely clear about is very important. You should never, under any circumstances, inflate your claim in any way. If you do, you open yourself up to criminal fraud charges in a worst-case scenario… and in the best case scenario the insurance company can use this as an excuse to simply not pay your claim. So be honest from the very start, and only ask for what you are entitled to.

If your claim is denied then ask them for a written explanation. If you get them to put something down on paper then they will be very careful about not paying what they should. The reason why is, they know that they owe you money and if they put it down on paper that they have refused to pay that money, then they open themselves up to easier legal action on your part.

The law is on your side in this case because the law requires that they put any denial on paper in most states.

Don’t fall for the trick that many insurance companies use of stating that your claim is being denied because too much time has passed. That is usually not a valid reason to deny a claim.

Also don’t fall into the fine print trap. Most insurance companies will trot out a long list of fine print details as an excuse for denying the claim. In most cases this is hogwash because even if it is in print, if that print was unclear and you didn’t understand it when you signed your policy, you may not be held to that fine print. Many courts have found that if the fine print is not clearly stated in such a way that a normal person can understand it, it’s not valid.

If you just can’t get anywhere, contact somebody higher up in the insurance company like a vice president. Send them a letter explaining your case and describing in plain language why you think the claim should be paid. If that doesn’t work send another letter.

If two letters don’t work send a third letter saying that you will commence legal action in one month’s time if the matter isn’t cleared up to your satisfaction within that time frame. Sometimes there’s nothing left for you to do but drop the matter off into the hands of local attorney and let them deal with it.

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