You pay insurance premiums to check that youre protected when things go wrong.
There are some steps you might take next.
But first, lets take a look at the possible reasons why an insurance claim was denied.
When Insurance Falls Short…
Unfortunately, insurance doesnt covereverything.These resourcescan help you manage those unexpected expenses.
Your Insurance Claim Was Denied Why?
If you have run into a problem like this, you likely have questions.
You paid your premiums on time and followed the steps for filing a claim.
So, why didnt it go through?
Eric Croak, CFP, is president at Croak Capital, a Toledo-based wealth management firm.
He said insurance is a business.
Denied claims are part of protecting a businesss bottom line.
Here are some common reasons insurers turn down a claim.
This can happen if the policyholder breaches their policy terms or misunderstands the coverage they have purchased.
If your insurance claim was denied, its important to take a close look at your policy terms.
Is it possible you misunderstood the coverage?
If not, highlight the areas where youre clearly entitled to overage.
Also, see to it you havent breached the terms of your insurance policy.
This could be something as simple as not submitting the required documentation to back up your claim.
When policyholders withhold information needed to substantiate their claims, it makes insurers very wary, Croak said.
Those errors could be the reason your insurance claim was denied.
As with incomplete claims, your insurer may see that as a red flag.
This is especially true if it looks like you misrepresented the facts in your claim paperwork.
Delays in Filing
Did you wait a few weeks before filing your claim?
That could be the reason you were denied.
So, remember: document everything meticulously.
Drowning in Expenses?
Maybe youre scrambling after your car broke down.
Or you got a medical bill you werent expecting.
Or inflation has finally pushed your budget over the edge.
You dont need to go it alone.
When money is tight,these resourcescan help you manage unexpected expenses without stress.
Health Care-Specific Issues
Health care insurancegets its own category for claim denials.
Try these steps before you give up on the claim.
You may find one call clears everything up.
Stearn also advises jotting down the name of the representative and the details of the conversation.
If your claim is still denied, the next step is a written appeal.
Appeal in Writing
If a phone call fails, its time to draft a letter to your insurance company.
Again, the more facts you’re able to provide, the better.
Its important to keep emotion out of it and quote directly from the policy where applicable.
Include copies of supporting documentation, such as medical records or home or car repair estimates, Stearn said.
Keep copies of everything, including the letter you send, and note the date you mailed it.
Need Some Quick Cash?
If youre looking to boost your income this month, weve got just the thing for you.
Pick a lawyer who knows their way around insurance claims, he said.
Theyll be able to spot any missteps and guide you on the best path forward.
Be mindful of the costs and confirm its worth it for what youre trying to recover.
If you could present documentation, youll be more likely to have success.
