Insurance companies failing to provide coverage often begins with the adjuster stating that you are not covered. When a natural disaster strikes like hurricane Katrina, or the California Northridge earthquakes, there is an extreme amount of damage and the insurance company might decide it cannot or does not want to pay out on all the claims. This is when they come up with a plan to improperly delay and deny claims and rightful claims at that, by policy holders are not paid.
Class Action Lawsuits Provide Justice When the Insurance Company Doesn’t Pay
a Valid Claim
Class action lawsuits provide justice when the insurance company doesn’t pay after a disaster. Insurance companies are in business to make a profit and when they are faced with paying out multiple claims after a disaster they are put in the position to lose money. The insurance company is paid premiums by policy holders and their obligated legally to pay valid claims.
When the insurance company uses tactics to avoid paying policy holders it can be a pattern and this can justify a class action insurance lawsuit for the policy holders that were wronged. At Ehline Law firm we help to bring people together that have had their insurance claims rejected and hold the insurance company responsible with class action lawsuits.
The tactics that the insurance company might use can be:
• Denying claims: The insurance company might deny a claim after a disaster like stating they do not cover roofs or that the damage was caused by water and not wind. This allows them to keep the money paid in premiums, when they use water as a cause and the policy does not cover water damage. This is a failure to provide insurance coverage to the policy holder.
• Delaying Claims: This is another tactic used by insurance companies that they believe to be effective in causing the policy holder to give up on pursuing their claim. This means the insurance company gets to save money they should have paid out. When the policy holder does not give up and the insurance company has delayed payment the policy holder might be willing to settle for a much smaller amount than what the claim is actually worth.
It is difficult and costly for the individual policy holder to fight the insurance company, which will use their attorneys with unlimited resources. In order to effectively fight the insurance company it is important to have an attorney that has the financial resources and the resolve to fight the insurance company for clients that have been wronged and joined the class action lawsuit. Contact us now.