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Steps to take if an insurer is underpaying

On Behalf of | Apr 26, 2021 | Insurance Disputes

Insurance premiums are dutifully made by most Americans and Oklahomans every day to ensure they have important protections when disaster strikes, they become sick or something simply goes wrong. When an insurance company is underpaying on an insured’s claim, it is important to know what steps the insured can take to help secure some relief.

Steps to take when an insured believes they are being underpaid

When an insured believes they have a claim for underpayment under their valid insurance policy, which could include health, life or other types of insurance, there are several steps they can take including:

  • The insured should review their contract and be familiar with their maximum coverage amounts;
  • The insured should document the denial of their claim;
  • The insured should ask their insurance adjuster how their claim amount was calculated;
  • If needed, the insured can hire a private claims adjuster; and
  • The insured can bring a bad faith claim against the insurer.

It is possible that the insured will have a breach of contract claim against the insurer or, in some instances, may have a bad faith claim against the insurer. In some situations, the insurer may be engaged in a widespread pattern or practice of bad faith underpayment of insurance claims. In either situation the insured is likely to need help with the costs of their claim and their potential damages. Trained guidance through this sometimes complicated process can also be valuable.

Underpayment claims can apply to health insurance and other types of insurance as well. It is essential for victims of this practice to know how to protect themselves when the insurance company is not paying their fair share.