Insurance Claims
Facing an insurance claim denial can be financially devastating. Whether it is a rejected life insurance payout, a denied fire loss, or a lowball offer on a car accident claim, the insurance company has teams of adjusters working to protect their profits. You need a team protecting you. Blumenshine Law Group represents policyholders against major carriers in Chicago and across Illinois to overturn wrongful denials and enforce your coverage rights.
Common Reasons Insurance Claims Are Denied in Illinois
Life involves inherent risks. Accidents can happen, homes may be damaged or destroyed, auto collisions can occur, individuals may become disabled, and some may pass away. Insurance serves to protect individuals, families, or businesses from these potential losses. It is designed to transfer the risk of loss from the insured party to the insurer.
An individual or business purchases insurance to protect against a potential future event. The insurance purchase is buying a promise. Insurance companies are great at marketing, selling policies, and collecting insurance premiums.
Unfortunately, insurance companies have also become skilled at delaying and denying insurance claims. They often do not keep their promises to the insurance policyholder. Insurance companies make money by selling insurance policies, but lose money when they pay claims! What a concept. That concept is important to keep in mind.
Their marketing makes you feel warm, toasty, and protected, but their claims departments often deprive you of what you feel you have paid for.
If you are experiencing an insurance claim delay or denial, understand that the insurer is motivated to keep its money, not to pay you money. Insurance companies try to limit their losses as much as possible with these claims. Our attorneys and auto accident attorneys at the Blumenshine Law Group can help you understand your options for maximizing your insurance recovery.
Filing a Claim
An insurance claim is made after you have sustained a loss. With our lawyers’ help, you may obtain insurance proceeds from an insurance company if the loss is insured. The loss may be:
- Death of a family member
- Bodily injury
- Physical destruction of all or part of your business
- Physical destruction of your home
- Physical destruction of another valuable property
Types of Insurance Claims
Your claim may be a claim against your insurance policy. A claim against your insurance company is known as a “first-party claim.” Examples of insurance policy claims against your own insurance company:
- Life insurance claims
- Disability insurance claims
- Business interruption insurance claims
- Property damage insurance claims: Chicago homeowners face unique risks that often lead to complex coverage disputes. We frequently assist clients in Cook County with claims involving:
- Frozen and Burst Pipes during Chicago winters.
- Wind and Hail Damage to roofs and siding.
- Sewer Backups and basement flooding, often a point of contention in older Chicago bungalows.
- Fire Damage restoration disputes.
- Theft insurance claims
You may have a claim against the insurance policy of an individual or company that caused your loss. A claim against the insurance policy of another individual or company is known as a “third-party claim.” Examples of insurance policy claims against another party’s policy include:
- Claim for injuries due to an auto collision
- Falling at a home or place of business
- Damage to your property due to another’s negligence
When making an insurance claim, you are a lone claimant against a savvy, wealthy, experienced goliath – the insurance company. They can outmaneuver you in multiple ways. Our experience collecting insurance claims will help level the playing field.
Recovering Extra Damages: Illinois Section 155 Bad Faith Claims
In Illinois, insurance companies have a duty to treat policyholders fairly. When they fail to do so, they may be acting in ‘bad faith.’ Under Section 155 of the Illinois Insurance Code (215 ILCS 5/155), policyholders can sue for penalties if an insurer’s behavior is ‘vexatious and unreasonable.’
If successful, our Chicago insurance attorneys can help you recover not just your original claim amount, but also:
- Reasonable attorney fees.
- Court costs.
- Additional penalty damages prescribed by the statute.
Don’t let an insurer delay your payment, hoping you will give up. Let us review your policy to see if Section 155 applies.
Auto Insurance Claims
Auto insurance claims are a common type of insurance claim arising from vehicle accidents, collisions, or damage. If you have been involved in an auto accident, filing a claim with your insurer is often necessary to cover repairs, medical expenses, or other losses. It is important to report the accident promptly and provide accurate information to your insurance company.
Auto insurance claims can be complex due to the involvement of multiple parties, such as other drivers, insurance companies, repair shops, and medical providers. Insurance companies may seek to minimize payouts or delay claim processing. Having experienced legal representation can help ensure that your rights are protected and that you receive the compensation you deserve for injuries, vehicle damage, lost wages, and other related expenses.
If your auto insurance claim is denied or delayed, you have the right to request a detailed explanation and seek an independent review. Consulting with a skilled Chicago insurance lawyer can provide guidance on your options and help level the playing field against insurance companies.
What should I do if my insurance claim is denied?
If your insurance claim is denied, you can contact the company and ask for a detailed explanation of the reasons for the denial. If you are unsatisfied with their answer, you can ask for an independent review by a qualified professional. If the claim is still denied, you may want to consult with an attorney experienced in insurance law.
Chicago Insurance Lawyers Protecting Your Rights
Don’t let insurance companies dictate your outcome. Call or text Blumenshine Law Group today for a Free Consultation at (312) 766-1000 or email [email protected] and let our experienced Chicago insurance lawyers fight for the compensation you deserve. Schedule Your Free Consultation Now!
What if My Dispute Involves a Small Dollar Amount?
Not every insurance dispute requires a lawsuit. If your disputed amount is below $10,000 (the Illinois Small Claims Court limit) or involves a minor customer service issue, you may be able to resolve it without hiring an attorney.
- File a Complaint with the State: The Illinois Department of Insurance (IDOI) can investigate complaints against insurers for delays or denials. While they cannot force a company to pay a factual dispute, their involvement often prompts insurers to review the claim again. You can file a complaint online at IDOI.Illinois.gov.
- Small Claims Court: For disputes under $10,000, Illinois Small Claims Court provides a simplified process for individuals to resolve conflicts without extensive legal fees.
When to Call Us: If your claim involves significant property damage, serious injury, or a ‘bad faith’ denial where the insurer is refusing to follow their own policy, contact Blumenshine Law Group. We handle complex claims where professional legal advocacy is necessary to recover what you are owed
FAQs
Reviewed and edited by Scott Blumenshine at Blumenshine Law Group. Scott has been practicing law for more than 37 years in the Chicago area.