{"id":352575,"date":"2017-06-28T17:25:06","date_gmt":"2017-06-28T22:25:06","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/consumer\/insurance\/can-i-sue-an-insurance-company-for-denying-my-claim.html"},"modified":"2024-01-09T13:22:56","modified_gmt":"2024-01-09T18:22:56","slug":"can-i-sue-an-insurance-company-for-denying-my-claim","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/consumer\/insurance\/can-i-sue-an-insurance-company-for-denying-my-claim.html","title":{"rendered":"Can I Sue an Insurance Company for Denying My Claim?"},"content":{"rendered":"\n<div class=\"wp-container-core-columns-is-layout-8f761849 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n<div class=\"fl-page-articles fl-section-main fl-section-main-full-width\"><h1 class=\"fl-no-margin-top\">Can I Sue an Insurance Company for Denying My Claim?<\/h1>\n\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    By <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/oni-harton-j-d\/\">Oni Harton, J.D.<\/a> | Legally reviewed by <a\n                href=\"https:\/\/www.findlaw.com\/company\/our-team\/melissa-bender-esq\/\">Melissa Bender, Esq.<\/a>\n                | Last updated\n        <time>\n                            January 09, 2024\n                    <\/time>\n    <\/div>\n\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n\n\n<div class=\"fl-key-takeaways fl-mb30\" data-testid=\"fl-key-takeaways\">\n    <div class=\"fl-card-content\">\n        <div class=\"fl-card-body fl-card-bg-teal fl-flex fl-flex-column\">\n                            <h2 class=\"fl-card-title fl-h2 fl-no-margin\">Key Takeaways<\/h2>\n                        <p>Yes. You can file a bad faith lawsuit against your insurance company if it fails to meet its legal obligations. Many of these obligations depend on the terms of your insurance policy.<\/p>\n\n        <\/div>\n    <\/div>\n<\/div>\n\n\n<p>Common violations of insurance law include the following:<\/p>\n<ul>\n<li>Wrongful claim denial<\/li>\n<li>The untimely and incomplete claim process<\/li>\n<li>Untimely payment to the claimant<\/li>\n<li>Inadequate payments as it relates to insurance coverage and policy limits<\/li>\n<li>Failure to pay valid claims<\/li>\n<\/ul>\n<p>State legislatures have passed laws to protect insurance consumers like yourself. Your state\u00a0<a href=\"https:\/\/content.naic.org\/state-insurance-departments\" target=\"_blank\" rel=\"noopener\">department of insurance<\/a>\u00a0provides insurance consumers with protections from unscrupulous practices as well as for the general public.<\/p>\n<p>Despite protections, it&#8217;s not uncommon for policyholders to sue their insurer for bad faith insurance practices. This happens when a policyholder cannot resolve issues with their insurance provider.<\/p>\n<p>Dealing with property damage, personal injuries, the death of a loved one, or some other misfortune is challenging enough. So, it&#8217;s easy to feel overwhelmed when you need to add multiple contacts with your insurance agent or the insurer&#8217;s adjuster to your\u00a0to-do\u00a0list.<\/p>\n<p>Learn about suing your insurance company for denying your claim or other misconduct. You can also\u00a0<a href=\"https:\/\/lawyers.findlaw.com\/bad-faith-insurance\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">get a lawyer<\/a>\u00a0to review your claim.\u00a0<\/p>\n<h2>Reasons an Insurance Company May Deny Your Claim<\/h2>\n<p>An\u00a0<a href=\"https:\/\/www.findlaw.com\/consumer\/insurance\/insurance-basics.html\">insurance company<\/a>\u00a0has an arsenal of reasons to use when denying a claim. Some reasons it provides are legitimate, but others are not. Some of the more common reasons for denying a claim include:<\/p>\n<ul>\n<li><b>Lack of coverage<\/b>: They may argue that your\u00a0<a href=\"https:\/\/www.findlaw.com\/realestate\/owning-a-home\/glossary-insurance-terms-and-concepts.html\">insurance policy<\/a>\u00a0doesn&#8217;t cover your claim. Examine your policy&#8217;s exclusions section to understand your coverage better. Ambiguities in the policy are judged in favor of the policyholder, not the insurer.<\/li>\n<li><b>Application errors<\/b>: An insurer may claim you made certain misrepresentations on your original application that nullify coverage under the policy.<\/li>\n<li><b>Claim errors<\/b>: Check your policy to determine the insurance company&#8217;s notification requirements for a claim. Some timelines are as short as 24 hours.<\/li>\n<li><b>Insurance fraud<\/b>: Submitting false or exaggerated claims can amount to\u00a0<a href=\"https:\/\/www.findlaw.com\/criminal\/criminal-charges\/insurance-fraud.html\">insurance fraud<\/a>. Such claims come with civil and criminal consequences.<\/li>\n<li><b>Bad faith denial<\/b>: An insurance company won&#8217;t give you this reason, but an insurer might offer many justifications. Its explanation could be couched in confusing policy jargon to disguise that it doesn&#8217;t want to pay for the claim. The insurer may claim that you made a bad faith claim.<\/li>\n<\/ul>\n<h2>When Can I Sue the Insurance Company for Denying My Claim?<\/h2>\n<p>Every\u00a0<a href=\"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/insurance-law.html\">insurer<\/a>\u00a0has obligations to its policyholders. They must abide by the\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-contracts-forms\/contracts-basics.html\">terms of the contract<\/a>\u00a0(the policy), act in\u00a0<a href=\"https:\/\/www.findlaw.com\/realestate\/owning-a-home\/payment-of-home-insurance-claims-and-good-faith.html\">good faith<\/a>, and avoid unfair trade practices.<\/p>\n<p>The insurance industry is generally regulated at the state level. The precise duties vary from state to state. However, these obligations typically require the insurance company to refrain from the following:<\/p>\n<ul>\n<li>An inadequate and delayed claim investigation<\/li>\n<li>Refusing to pay a claim where liability is reasonably clear<\/li>\n<li>Failing to approve or deny a claim within a reasonable or specified timeframe<\/li>\n<li>Denying a claim with little or no explanation as to the reason for the denial<\/li>\n<li>Failing to defend you in a liability lawsuit where the liability policy potentially covers at least one of the claims<\/li>\n<li>Denying a claim based on an application misstatement after the\u00a0<a href=\"https:\/\/dictionary.findlaw.com\/definition\/incontestability-clause.html\" target=\"_blank\" rel=\"noopener\">period of contestability<\/a>\u00a0has passed<\/li>\n<\/ul>\n<p>If you believe your insurer improperly\u00a0<a href=\"https:\/\/www.findlaw.com\/consumer\/credit-banking-finance\/bad-faith-insurance-claims-denials-overview.html\">denied your claim<\/a>, you can explore legal options, including suing your insurance company.<\/p>\n<p>You should contact a qualified attorney if you think your insurance company is being unfair. It&#8217;s also wise to consider contacting an insurance claim attorney even before receiving a claim denial. Sometimes, the presence of an experienced insurance professional can help persuade the company to honor its obligations. It may agree to a\u00a0<a href=\"https:\/\/www.findlaw.com\/injury\/accident-injury-law\/resolution-before-trial-settlement.html\">fair settlement<\/a>\u00a0at that point.<\/p>\n<h2>What Types of Legal Action Can I Take Against My Insurance Company?<\/h2>\n<p>Each state has statutes and case law regulating the insurance industry, including the types of lawsuits you can bring against an insurer. Your insurance policy is a type of contract, and every state allows for a\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-contracts-forms\/breach-of-contract-and-lawsuits.html\">breach of contract action<\/a>.<\/p>\n<p>Many states also allow you to pursue a\u00a0<a href=\"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/what-is-bad-faith-insurance-law.html\">bad faith<\/a>\u00a0tort lawsuit. Additionally, you may be able to sue under your state&#8217;s unfair trade practices laws. Many states have codes or statutes pertaining directly to consumer protection within the insurance industry.<\/p>\n<h3>Damages Available<\/h3>\n<p>An insurance attorney can explain the damages available to you and the likelihood of your success. Each state has different rules about the types of damages you can pursue in a given lawsuit.<\/p>\n<p><a href=\"https:\/\/www.findlaw.com\/litigation\/legal-system\/what-are-compensatory-damages.html\">Compensatory damages<\/a>, such as medical expenses and lost wages, are available in each lawsuit. On the other hand,\u00a0<a href=\"https:\/\/dictionary.findlaw.com\/definition\/damage.html\" target=\"_blank\" rel=\"noopener\">punitive damages<\/a>\u00a0are only available in some cases and may be limited by state law or the court.<\/p>\n<h2>Tips for Suing the Insurance Company for a Denied Claim<\/h2>\n<p>If you&#8217;re considering suing your\u00a0<a href=\"https:\/\/www.findlaw.com\/consumer\/insurance.html\">insurance company<\/a>, it&#8217;s always best to be prepared and keep detailed records. Some ideas to keep in mind include:<\/p>\n<ul>\n<li>Document any correspondence with the insurance company and its representatives. Keep copies of emails and take notes of phone conversations, including dates and the names of representatives. Stay calm and assume the insurance company is recording your calls.<\/li>\n<li>Maintain records of your insured property, including receipts and pictures of property insured under a homeowner&#8217;s insurance policy or other relevant policy. Take pictures immediately after the accident.<\/li>\n<li>Keep track of\u00a0<a href=\"https:\/\/www.findlaw.com\/injury\/accident-injury-law\/worksheet-damage-estimate.html\">expenses you incur<\/a>, such as repairs, healthcare expenses, attorney&#8217;s fees, and lost wages. Be honest in your assessments and record-keeping.<\/li>\n<li>Choose an attorney with extensive experience in insurance litigation. Insurance law can be complex, time-consuming, and expensive.<\/li>\n<\/ul>\n<p>If you decide to sue your insurer, this documentation will help your attorney present a strong case.<\/p>\n<h2>Can I Sue My Insurer?<\/h2>\n<p>It&#8217;s possible. An\u00a0<a href=\"https:\/\/lawyers.findlaw.com\/motor-vehicle-accidents-plaintiff\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">auto accident attorney<\/a>\u00a0may be necessary if you are unfairly compensated or your insurer denies your claim. If you&#8217;ve recently been in a car accident and are currently facing difficulties with your claim, seek assistance. A car accident lawsuit may be necessary. You can sue your insurer following accident claims in some car accident cases.<\/p>\n<p>If you fail to receive a fair settlement offer or compensation following a car accident, you may have a legal claim against your insurer. An insurance adjuster&#8217;s investigation may have led to this result. If this happens in your case, you should speak with an experienced attorney.<\/p>\n<h2>Don&#8217;t Fight Your Insurance Company Alone<\/h2>\n<p>If you&#8217;re at the point of suing your insurance company for denying your claim or committing other misconduct, it&#8217;s time to look for a\u00a0<a href=\"https:\/\/lawyers.findlaw.com\/bad-faith-insurance\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">local insurance attorney<\/a>. They can defend your interests.<\/p>\n<p>You&#8217;ve already had to deal with the events giving rise to the insurance claim. Get help with an uncooperative insurer. You can bet that the insurance company will be well-equipped with its team of experienced lawyers. They will do everything they can to defend their client. Level the playing field by contacting an insurance attorney today.<\/p>\n\n\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"Yes\"\n                value=\"yes\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">Yes<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                    <g id=\"thumbs-up\" clip-path=\"url(#clip0_604_3418)\">\n                        <path id=\"Vector\"\n     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class=\"was-this-helpful__choose-option-message-text\"><\/p>\n        <\/div>\n        <form class=\"was-this-helpful__feedback-form\">\n            <div class=\"was-this-helpful__feedback was-this-helpful__feedback--positive\">\n                <fieldset>\n                    <legend class=\"was-this-helpful__feedback-form-title\" tabindex=\"0\">Why was this helpful?<\/legend>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--understandable\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"positive-feedback\"\n                                value=\"Easy to understand\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--understandable\"\n                        >Easy to understand<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--solved-problem\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"positive-feedback\"\n                                value=\"Solved my problem\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--solved-problem\"\n                        >Solved my problem<\/label>\n                    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class=\"was-this-helpful__feedback-form-title\" tabindex=\"0\">Why was this not helpful?<\/legend>\n                    <div class=\"was-this-helpful__choose-option-message\" role=\"status\">\n                        <p class=\"was-this-helpful__choose-option-message-text\"><\/p>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--missing-info\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Missing Information\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--missing-info\"\n                        >Missing the information I need<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--complicated\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Too complicated\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--complicated\"\n                        >Too complicated \/ too many steps<\/label>\n                    <\/div>\n                    <div 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     class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Other\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--negative-other\"\n                        >Other<\/label>\n                    <\/div>\n                <\/fieldset>\n            <\/div>\n            <div class=\"was-this-helpful__form-buttons-container\">\n                <button\n                    class=\"was-this-helpful__feedback-button was-this-helpful__feedback-button--positive at-feedback-submit fl-button secondary\"\n                    type=\"submit\"\n                >\n                    <span class=\"fl-button-content\">Submit<\/span>\n                    <i\n                        class=\"fa fa-angle-right medium\"\n                        aria-hidden=\"true\"\n                    ><\/i>\n                <\/button>\n                <button\n                    class=\"was-this-helpful__feedback-button was-this-helpful__feedback-button--cancel fl-button primary disabled\"\n                    type=\"reset\"\n                >\n                    <span class=\"fl-button-content\">Cancel<\/span>\n                    <i\n                        class=\"fa fa-times-circle medium\"\n                        aria-hidden=\"true\"\n                    ><\/i>\n                <\/button>\n            <\/div>\n        <\/form>\n    <\/div>\n    <div class=\"was-this-helpful__thank-you-message\" role=\"status\">\n        <i class=\"was-this-helpful__thank-you-message-icon fa fa-check\"><\/i>\n        <p class=\"was-this-helpful__thank-you-message-text\" aria-live=\"polite\"><\/p>\n    <\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"fl-section-sidebar\"><div class=\"fl-editors-summary\" data-testid=\"fl-editors-summary\">\n    \n    <div class=\"fl-editors-summary-content\" data-testid=\"fl-editors-summary-content\">\n                    <h2>Can I Solve This on My Own or Do I Need an Attorney?<\/h2>\n                <div class=\"fl-editors-summary-content-main\" data-testid=\"fl-editors-summary-content-main\">\n            \n        <\/div>\n        <ul class=\"fl-list-style-none\">\n                            <li data-testid=\"fl-editors-summary-content-item\">\n                    <i class=\"fa fa-check medium fl-editors-summary-content-item-icon\" aria-hidden=\"true\"><\/i>\n                    Insurance issues typically need an attorney&#8217;s support.\n\n                <\/li>\n                            <li data-testid=\"fl-editors-summary-content-item\">\n                    <i class=\"fa fa-check medium fl-editors-summary-content-item-icon\" aria-hidden=\"true\"><\/i>\n                    You can hire an attorney to enforce your rights to fair insurance coverage and full payment.\n\n                <\/li>\n                    <\/ul>\n                    <div class=\"fl-editors-summary-content-description\" data-testid=\"fl-editors-summary-content-description\">\n                <p>Legal cases for insurance disputes and claim denials can be complicated and slow. An attorney can offer tailored advice and help prevent common mistakes.<\/p>\n\n            <\/div>\n                            <div class=\"fl-editors-summary-content-link fl-flex\" data-testid=\"fl-editors-summary-content-link\">\n                <i class=\"fa fa-angle-right medium\" aria-hidden=\"true\"><\/i>\n                <p class=\"find-attorney\"><a href=\"https:\/\/lawyers.findlaw.com\/consumer-protection\/#USER_GEO\/?fli=esum:0803\" target=\"_blank\" rel=\"noopener\">Find a local attorney<\/a><\/p>\n\n            <\/div>\n            <\/div>\n<\/div>\n\n\n\n<div class=\"email-subscription fl-mb30\">\n    <div class=\"email-subscription-header\">\n        <div class=\"email-subscription-header-content\">\n            <h3 class=\"fl-callout-sm fl-no-margin\">Stay Up-to-Date With How the Law Affects Your Life<\/h3>\n        <\/div>\n        <div class=\"email-subscription-header-image fl-flex fl-items-end\">\n            <img decoding=\"async\"\n                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<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>As a policyholder, you can sue an insurance company for bad faith actions. 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