Paying Required Insurance Premium does not Mean Getting the Full Benefits

Jul 19, 2013 by

Disasters that damage commercial properties can prove to be too costly to the owners and their business. Most often, the only probable and fastest solution that can help property owners rise up from losses is through insurance claims, to which larger premiums have been paid for purposes of adequate protection during catastrophes.

Many calamities have occurred and many commercial property claims have been filed, but the usual responses from insurance providers have either been total denial of the claim or payment that fall short of the full amount of premium specified.

Filing for claims is always never without a disputed issue, a fact that points to the interests of the insurance firm and the insured that are frequently be in opposition of each other. For the insured believes, after paying the stipulated premiums, that the insurance provider will pay for all things claimed or the full amount of benefits specified in the contract; this, however, is almost always never the case as insurance firms oftentimes resort to means that will keep them from paying the full benefits. Not keeping to their end of the deal, insurance providers often get accused of acting in bad faith, that is, the unjustly treating any claims made, either through denial or under valuation of damages and losses for minimal payments.

To approve a claim, information answering or related to the following are required by insurers:

  • What caused the loss
  • Whether the loss is actually covered by the policy
  • The extent of damage to the property
  • Which items need replacement or mere repairs
  • The actual cost required in the repair or replacement of the property
  • The actual amount the insurance firm ought to pay the claimant

Cause of loss or damage to property is not limited to natural disasters, such as earthquake or weather events, but includes fire, flood, plumbing leaks or theft. A denial or any under valuation of claims can have a major effect on owners of properties. Thus, to get the full benefits stipulated in the policy property owners will definitely need the services of a Dallas, TX insurance attorney who is knowledgeable in the contents of insurance policies and insurance laws. As the required payments to premiums have been made, the expected benefits ought to be awarded – this is what the contract between the insured and the insurer states; anything that deviates from this constitutes acting in very bad faith.

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