The Importance of Reading Your Full Insurance Policy

A contract with a pen laying on it

When you purchase insurance - whether it’s for your home, auto, business, or other matters - you assume that you’ll be covered if and when something occurs. Unfortunately, many policyholders experience an unpleasant surprise when they make a claim only to have their insurance company tell them they aren’t covered for one reason or another. 

Why Do Insurance Companies Deny Claims?

To understand why this happens, it’s helpful to consider how the insurance industry works. Fundamentally, insurance companies make money by collecting premiums every month and paying out as little on claims as possible. For this reason, they write insurance policies to provide extremely specific coverage and exclusions that allow them to deny claims for various reasons. In many cases, denials are based on an interpretation of a term that is favorable to the insurance company’s position, which means that denial can often be successfully challenged.

How Can You Protect Yourself?

As a policyholder, the first thing you should do to avoid getting blindsided by a lack of coverage is to carefully read your entire insurance policy. If you do not understand something or have questions about whether a particular event would be covered, do not hesitate to ask your agent. You can always ask for changes to your policy that would cover certain things, provided you are willing to pay for additional coverage. In addition, in the event that you have significant assets on the line in the event of a denial of coverage, it’s not a bad idea to have a lawyer review your policy to ensure that you are covered.

What if the Insurance Company Has Already Denied My Claim?

In the event that the insurance company has already denied your claim, you have some options to fight for coverage. It’s a good idea to contact a lawyer after a denial to represent you throughout the process, as insurance companies are ready to vigorously defend denials of coverage.

First, you’ll need to appeal the denial to the insurance company itself. The documentation that you provide at this point will have a significant impact on the outcome of your case, and an attorney can help you maximize your chances of a successful appeal. In the event that the insurance company denies your appeal, you will need to file a lawsuit against your insurance company in order to get the benefits to which you are entitled. If your case gets to this point, it’s critical that you retain qualified legal counsel to represent you. Insurance companies have teams of attorneys prepared to defend denials at the drop of a hat, and your best chance of obtaining a favorable result is retaining a qualified lawyer as soon as possible.

Contact Salam & Associates for a Free Consultation

If you are involved in a dispute with your insurance company, an attorney may be able to help. At Salam & Associates, we are committed to helping our clients obtain the insurance benefits to which they are entitled.

Our lawyers are licensed in Texas, New Mexico, Michigan, and D.C. Call us today at 866-640-8998 or contact us online to schedule a free case evaluation.


Richardson, Texas - Office hours and special appointments
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