Avoiding Delays in Your Insurance Claim

According to McClatchy, the recession is "fueling a boom in insurance fraud."  McClatchy further reports that "questionable claims" increased by 14% from 75,000 in 2008 to 85,000 in 2009. 

As the insured, you do not want to be caught in the cross-hairs of a "fraud investigation" when you make your claim.  Insurance companies on the alert for any potential “fraud” may delay paying your legitimate claim to conduct an "investigation" because your claim is perceived as questionable. This can prolong and delay payment for your legitimate losses.

What Insurance Companies Look For

Below are 7 categories that raise an insurance company’s fraud flags according to "Busted! How Insurance Companies Spot Bogus Claims" by Rebecca Theim with Tipitina Communications, Inc.:

  1. High debt or financial stress;
  2. Increasing your coverage limits before the loss event;
  3. No police report;
  4. Damage to or theft of old or obsolete items or items which are  difficult to value;
  5. A history of losses and claims;
  6. Unusual calmness after a major loss; and
  7. Suspicious-looking or handwritten receipts for repairs or  replacement property.

If your insurance company is delaying payment and “investigating” your claim or you have been called in for an “Examination Under Oath” do not delay in contacting our office.  Once your claim has been denied by an insurance company, your only recourse may be to file suit.