Can the insurance company deny my comprehensive damage claim because they have been unable to speak with relevant parties (not myself or anyone on my policy)?

Get Legal Help Today

 Secured with SHA-256 Encryption

Can the insurance company deny my comprehensive damage claim because they have been unable to speak with relevant parties (not myself or anyone on my policy)?

Asked on October 15, 2014 under Insurance Law, Michigan

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

They are allowed to *delay* the claim while they attempt to do a full investigation, such as by speaking with other parties, so long as the delay is reasonable; however, they cannot deny it simply because they cannot speak to other parties. Rather, they can only deny it if the claim appears to be 1) outside of the coverage specified in the policy, 2) you failed to pay premiums, or 3) fraudulent in some way. If they cannot locate or speak to other involved parties, it is possible that is making them think there is something fraudulent about the claim (e.g. if they can't locate the other parties, maybe they don't exist and the story you told the insurer is fabricated), but if you disagree with their determination, you could file a lawsuit against them for breach of contract (not honoring their contractual obligations--the insurance policy is a contract) to force them to pay.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption