2024 What Is an Insurance Claim Dispute in Louisiana?

Many people rely on their health, auto, or homeowners insurance in the event that something goes wrong and they require financial aid. Unfortunately, many individuals file claims after emergencies only to have them denied with seemingly no justification. When asking, “What is an insurance claim dispute in Louisiana?” it’s important to review your case with an attorney to ensure you are treated fairly and receive the compensation you’re entitled to.

Understanding an Insurance Claim Dispute in Louisiana

Many individuals file disputes after seeing their insurance companies’ response to their claims. Whether you experienced an outright denial of coverage, received an offer that grossly underestimated the amount of compensation required or listed on the policy, or there were excessive payment delays, it’s crucial that you file a dispute to fight for what you’re owed.

Potential Reasons for Claim Denials

Insurance companies commonly try to pay as little as possible whenever they can. Because of this, they will most likely try to find any reason to deny or reduce your claim. The following are common issues that an insurance company may use to avoid paying you:

• Exclusions: Some insurance companies try to avoid paying claims by creating illogical exclusions to their policies. In some cases, these exclusions might not even be legal and could be based on trivial information. Just because an insurance company claims a certain issue is excluded from their policy does not mean it is an ethical exclusion.
• Renewal Errors: If an insurance policy does not renew automatically, it could result in individuals thinking they had a policy that they were not paying for. In most cases, lapses in coverage are difficult to dispute, so it is important to check your coverage periodically to ensure you have the amount you think you do.
• Lack of Information: There are certain requirements you must follow in order to submit an insurance claim. If you don’t follow them, your claim will most likely be denied.
• Medical Delay: One of the most important things to do after any accident is to seek medical attention as soon as possible. Many insurance companies will not approve claims without medical documentation. If you wait too long to see a doctor, they can also argue that you weren’t as injured as you claim due to your delay.
• Other Medical Conditions: If you have other health issues, an insurance company might try to claim that your injuries are a result of your preexisting conditions instead of happening after the accident. These situations could benefit from legal representation to gather more evidence supporting your injuries to try and get the claim approved.
• Bad Faith: Insurance companies are supposed to be fair when evaluating whether a claim is valid, but they fail to do this all the time. If you think that an insurance company has not given the appropriate attention to your claim or is engaging in shady tactics to avoid giving you compensation, consider working with an insurance dispute attorney to see if they are operating in bad faith.

It is important to figure out the exact reason that an insurance company denied your claim so that you can take steps to reverse the decision. The company must provide you with a reason, so if they cannot explain why they denied your claim, it might be likely that they are engaging in bad faith practices.

What Should You Do If Your Insurance Company Acts in Bad Faith?

If you believe that an insurance company is acting in bad faith regarding your insurance claim, you can file a complaint with the Louisiana Department of Insurance. They review many cases each year regarding questionable actions committed by insurance companies of all kinds. These types of complaints often require a large amount of evidence, so make sure to collect as much documentation as possible before filing a complaint.

While this can be a constructive action to take for your insurance claim dispute, the LDI cannot provide legal advice on your claim. This is why it is important to review your case with an attorney who understands bad faith laws in Louisiana to determine what your next steps might be for your insurance claim dispute.

FAQs

Q: How Do I Make My Insurance Claim Stronger to Avoid a Dispute?

A: To make an insurance claim stronger, you should work with an attorney to provide as much evidence and detail as possible. A personal injury claim, for example, often includes medical records that were created after the accident occurred. It is important to seek medical or other professional attention as soon as possible after an accident to generate paperwork that supports your claims. Other helpful evidence includes photos, videos, and testimony of the accident scene.

Q: What Is an Insurance Coverage Dispute?

A: A coverage dispute usually occurs between an insurance policyholder and an insurance company. In most cases, the policyholder believes that they are entitled to more compensation than the insurance company does. In some cases, an insurance company might deny a claim entirely. To address a dispute, most individuals consult outside sources like attorneys to negotiate on their behalf and to file an appeal if necessary.

Q: How Is a Dispute Between an Insurer and an Insured Resolved in Louisiana?

A: Most disputes between an insurer and an insured party are resolved outside of court. In some cases, an insurer simply needs more information to verify claims. Other instances require a formal appeal to be drafted so that the company can revisit a claim. If an insurer and an insured are unable to come to an agreement, then arbitration or litigation with an insurance claims dispute lawyer might be necessary to receive appropriate compensation.

Q: What Do I Do If My Claim Dispute Results in a Denial?

A: If a claim dispute results in a denial, it is not necessarily impossible to reverse the decision. Depending on the context, a claim denial could get reversed if the insured provides more information like medical records or other forms of evidence. Regardless of the reason for the denial, an insurance company must explain why they denied the insured. If they cannot do so, it might mean that they are acting in bad faith, which could result in legal implications.

Fight for the Compensation You Deserve

Don’t let a big insurance company attempt to deny you coverage. Many insurance companies will attempt to delay, deny, or delegitimize claims to avoid paying you what you’re owed. Working with a skilled insurance attorney gives you a much stronger chance of building a strong claim or having your appeal acknowledged. Schedule a consultation with Dampf Thames, Attorneys at Law, if you need assistance with an insurance claim in Louisiana.