If you’re a homeowner that’s had the common but unfortunate experience of filing a claim on your insurance policy, you have likely experienced delays in having that claim approved – potentially, still living with damage or unfinished work in the meantime. If you’re a professional in the trades whose business relies on completing these repairs, delays can mean disruption to your planning and missed opportunities – it’s challenging to grow your business when you’re figuring out which projects will actually be funded, by how much and when.
Too often the blame falls on the contractor when, in reality, the issue is with the insurance company behind it all. For example, a contractor may be waiting weeks for an insurance company to approve a claim, causing financial strain and project delays; with our legal help, the approval is expedited, and the work can resume as planned. A lawyer can help resolve insurance claim disputes efficiently, protect consumers from unfair insurance company practices, and ensure the project can move forward.
What is an Insurance Claim?
An insurance claim is a formal request made by a policyholder to an insurance company. An insurance claim seeks compensation or coverage for a loss or damage covered under the policy. This could include roof leaks, hail damage, wind damage, or other structural issues caused by weather conditions.
Once an insurance claim is filed, the insurance company is supposed to evaluate the damage, determine whether or not the damage is covered under the policy, and provide the proper payment to repair the damage. Insurance claims can sometimes result in a settlement or, if unresolved, may lead to litigation. Unfortunately, there are many times this process does not go as planned, where insurance companies will undervalue the damage or delay the claim indefinitely, leaving homeowners and contractors stuck.
Regulatory institutions oversee the insurance claim process to ensure compliance and protect consumer rights; put simply, the law is there to keep things fair for everyone but it can be challenging to navigate without a professional. When delays happen, it is appropriate to seek out a lawyer to help push the claim and get the project back on schedule.
Insurance Delays: Common Tactics That Stall Construction Projects
One of the most common issues that could occur is when insurance companies delay decisions without clear justification. This might mean the insurance company requests repetitive inspections, or they may fail to acknowledge damage altogether, claiming it is normal wear and tear. In some cases, these delay tactics can amount to abuse of the claims process, unfairly burdening contractors and homeowners.
Insurance companies could also provide approved work to contractors, but leave out major line items, lowball material costs, or apply excessive depreciation. All of this could cause the contractor to either just accept the lower payment or push the homeowner into paying the rest. These events will cause delays on both the contractor’s and the homeowner’s part.
Committed legal professionals can help contractors and homeowners fight back against these abusive practices.
How Legal Support Helps Contractors Move Projects Forward
When an insurance company, as a business, starts delaying claims or providing conflicting responses, having a committed consumer law attorney can change the conversation completely; they are often aware of how their actions would sound in front of a judge and the tone changes accordingly. With legal representation in place, a consumer law attorney can take over communication with the insurance company on behalf of the policyholder. The committed consumer law attorney will handle disputes over depreciation, missing line items, and unreasonable delays, using litigation if necessary to protect consumers’ rights.
When legal representation is brought in early in the process, contractors can avoid stalled start days and ensure they can stay on schedule as much as possible, with the possibility of reaching a fair settlement.
Contractors Can’t, and Shouldn’t, Fight Insurance Companies Alone
Kansas and Missouri have laws in place prohibiting contractors from negotiating insurance claims on behalf of the homeowner. In Kansas and Missouri, a licensed individual must handle insurance claims, such as a consumer law attorney, like Rapp Law Firm. State institutions, such as insurance regulatory agencies, oversee and enforce these legal requirements.
If a contractor attempts to fight the insurance claim with legal counsel, they risk violating state regulations and also prolonging delays. It becomes essential that a consumer law attorney is brought in to ensure proper steps are taken.
Underpaid or Partial Insurance Payments? Legal Review May Reveal More
An additional insurance issue that can arise is when an insurer issues a payment that turns out to be incomplete, relies on excessive depreciation, excludes work, or is inaccurate relative to market pricing. It is crucial for policyholders to recover the full amount of money owed under the insurance policy to ensure they are properly compensated.
A consumer law attorney can review every detail of the payment against the policy and actual repair needs, seeing if the numbers align, and if they don’t, a lawyer can pursue a legal route, such as seeking a fair settlement or, if necessary, litigation. By bringing in a consumer law attorney to help at this stage, neither the homeowner or the contractor needs to be forced to pay the additional costs the insurance company leaves them with to fully complete the job.
Bad Faith Insurance Tactics: When Delay Turns Into Legal Liability
There are times when insurance delays are caused by oversight or general bureaucracy. However, there are times when insurance delays cross the line into what is known as bad-faith insurance conduct.
Bad faith insurance conduct occurs when an insurance company knowingly mishandles, delays, or undervalues a legitimate claim. This could be by ignoring a contractor’s estimates, refusing to acknowledge obvious damage, misrepresenting policy coverage, continuing to stall without a valid reason, or failing to protect consumers’ personal information, such as in the case of a data breach.
Under Kansas and Missouri insurance law, homeowners have the right to expect fair treatment under the terms of their insurance policy- you are legally entitled to get the coverage you’ve been paying for. When an insurer fails to act properly, legal action can be taken to recover payment and possibly seek additional damages. This legal action may involve litigation or result in a settlement to resolve the dispute.
When to Bring in a Lawyer for an Insurance Dispute
It can be advantageous to bring in a lawyer before the insurance claim is formally denied. Legal intervention is most effective as delays start to appear – rather than after all is said and done. Direct communication from a consumer law attorney can be especially effective when the insurer stops responding.
A consumer law attorney, like those at Rapp Law Firm, can evaluate the case, interpret the policy, handle communications, and manage legal escalation if it occurs.
If you have further questions or have found yourself in the middle of an insurance claim, contact the team at Rapp Law Firm.