State Farm is one of the most renowned property insurance companies in the United States. It is also well-known for its reluctance to pay out claims. In the event of natural disasters such as earthquakes and hurricanes, State Farm has often attempted to deny policy claims by citing that their policy does not cover the damage and refusing to fulfill their obligations as an insurer. As a result, insurance companies often require claimants to provide recorded statements in which they answer questions about the incidents that led to their claims.
The American Association for Justice (AAJ) reports that one in five of the denied requests for medical necessity concerned behavioral health services. Additionally, the United Services Automobile Association (USAA) is another insurance company that is notoriously difficult to deal with. Insurance companies may even refuse to renew a policy simply because the policyholder called to inform them about the possibility of filing a claim. The key to successfully overcoming them is to hire a personal injury lawyer who understands the tactics insurance companies use and knows how to counter them. In addition to covering damages you suffer yourself, insurance also helps cover damages to other people, such as injuries in a car accident.
Some companies even incentivize insurance adjusters with bonuses or career advancement opportunities by keeping payments low, so take everything they say with a pinch of salt. Denial rates also vary by state, although insurers in the same state tend to differ significantly. When dealing with an insurance company, expect a low initial offer and don't let that influence your stance on the benefits or compensation you need and deserve. Insurance companies are aware that many people who file claims have never gone through this process before and lack legal knowledge to recognize certain things that could harm their claims. Insurance companies have even refused renewals due to lack of credit history, despite policyholders always paying their bills on time and in cash.
These large insurance companies certainly have enough funds to adequately compensate their customers or people injured by their policyholders. The insurance company could deny payment of any damages because the policyholder lacked flood insurance. Navigating through an insurance claim can be a daunting task, especially when dealing with an insurer that denies more claims than others. To ensure you get the compensation you deserve, it's important to understand how insurance companies operate and what tactics they use to deny claims. Hiring a personal injury lawyer can help you understand your rights and make sure you get the best possible outcome from your claim.
