5 Myths About Insurance coverage Declare Disputes & The Attorneys That Dispute Them – Debunked

Navigating insurance coverage declare disputes and coping with insurance coverage corporations might be difficult, and hiring an lawyer to assist is without doubt one of the greatest strikes you may make. Nonetheless, many individuals have heard destructive issues about attorneys and are apprehensive about working with them. Do you resonate with this?  

In that case, we’re right here to clear the air. We all know there are a lot of myths and misconceptions about disputing insurance coverage claims and insurance coverage declare attorneys, and we’re right here to debunk the highest 5.

5 Myths About Attorneys and Disputing Insurance coverage Claims

On this weblog, we’re breaking down 5 frequent myths about insurance coverage claims and the attorneys who tirelessly advocate for his or her purchasers so as to get them the compensation they rightfully deserve. So, when you’re questioning how this entire course of works, we’re right here to assist!

MYTH #1: Attorneys demand cash upfront.

TRUTH: It is a frequent fable; a respected insurance coverage declare dispute lawyer is not going to ask for cash upfront. As an alternative, they work on a contingency foundation, which means they solely receives a commission in the event that they win the case. This implies there aren’t any upfront prices to the house owner, and the lawyer solely will get paid a proportion of the settlement or verdict quantity they safe for the house owner. 

If the lawyer doesn’t win the case, the house owner is just not chargeable for paying any authorized charges. It is a win-win state of affairs for the house owner. 

MYTH #2: There will not be sufficient cash to switch the roof after the lawyer is paid.

TRUTH: Since insurance coverage corporations are legally required to pay lawyer charges, authorized prices, and curiosity penalties along with the declare proceeds, this isn’t true.

Underneath most insurance coverage insurance policies, the insurance coverage firm is required to cowl the affordable lawyer charges and prices incurred by the house owner after they pursue a declare. Which means that if a house owner hires an lawyer to dispute a declare denial or insufficient settlement provide, the insurance coverage firm should pay for the lawyer’s companies. 

On high of that, if the insurance coverage firm unreasonably delays or denies cost of the declare, the house owner could also be entitled to get better 18% curiosity penalties on high of the declare quantity.

MYTH #3: The insurance coverage coverage may very well be canceled, or charges may very well be raised if an lawyer is employed or initiates a lawsuit. 

TRUTH: Completely not – state legislation prohibits insurance coverage corporations from retaliating in opposition to policyholders who file a declare, rent an lawyer, or take authorized motion in opposition to them. Which means that insurance coverage corporations legally can not cancel a coverage or increase charges solely as a result of a house owner hires an lawyer or sues the insurance coverage firm.

MYTH #4: Public adjusters (PAs) are higher suited to deal with insurance coverage disputes than attorneys.

TRUTH: Public adjusters aren’t at all times greatest suited to deal with insurance coverage disputes. Whereas it is true that PAs have experience in assessing and estimating property harm, it is necessary to notice that they don’t seem to be licensed attorneys and should not be capable to deal with authorized points associated to insurance coverage claims. 

Attorneys are higher geared up to deal with authorized points and conditions the place there are disputes over protection limits or exclusions. They’ll evaluation the insurance coverage coverage and decide if the insurance coverage firm is performing in good religion and complying with state insurance coverage legal guidelines.

MYTH #5: Attorneys receives a commission with cash they didn’t earn or that the house owner bought on their very own.

TRUTH: This isn’t true. Attorneys are solely paid with the “internet new” cash, which is over and above what the house owner acquired on their very own. In different phrases, the lawyer is just paid on the cash they have been in a position to get for the house owner that the house owner wouldn’t have been in a position to get on their very own.

For instance, a house owner filed a declare with their insurance coverage firm and was awarded $50,000 for damages to their property. The house owner then hires an lawyer to dispute the insurance coverage firm’s resolution, and the lawyer can negotiate a settlement of $70,000. On this case, the lawyer would solely be paid on the $20,000 distinction between the unique $50,000 settlement and the $70,000 settlement that the lawyer was in a position to receive.

The Lane Regulation Agency Is Right here To Assist Settle Denied Insurance coverage Claims

As outlined above, hiring an skilled insurance coverage declare dispute lawyer can present vital benefits to owners in getting the compensation they deserve and defending their rights. Attorneys are solely paid on the web new cash they can get for the house owner, and their charges and prices are required to be paid by the insurance coverage firm, not the house owner. So, there isn’t any purpose to hesitate to hunt out authorized assist if you wish to dispute an insurance coverage declare.

The Lane Regulation Agency has a group of skilled attorneys specializing in tackling insurance coverage declare disputes. When you’re in search of a devoted advocate who will struggle tirelessly in your behalf, click on this hyperlink to arrange a free session.