Most people keep experiencing connected losses and injuries from the accident, and might be curious if the insurance claim can be reopened? Occasionally, the sustained injury you got because of someone else’s negligence causes you to face more medical problem and other issues. Moreover, you might experience continuous medical expenses and other damages from missed income.
In addition, an insurance claim cannot be reopened if you have received a settlement from your insurance company. For this reason, it’s advisable to get a knowledgeable lawyer during such cases. However, policyholder-friendly laws are available in most states. Also, they usually offer the ability to reopen an insurance claim even after settlement or when you get underpaid.
Reasons You Want Your Insurance Claim Be Reopened
It might seem beneficial to reopen your insurance claim as you will receive compensation. This is if you were not fully paid at the first filing. Moreover, having a good insurance policy is one of the best ways to lower the financial risk to your during a disaster. Generally, call your insurance provider immediately of any accident, damage or injury.
After that, you will be compensated full amount that covers the expense of the damage according to your policy’s terms to reduce any deductible. Not all damages from an accident are evident at the period a claim is filed. It usually takes weeks, months or years for policyholders to fully comprehend the extent of the damages once they collect their first payment.
Moreover, most people might be force to cover cost from their pocket for something that has been covered by their coverage. This is because of the difference between the payment. Also, the exact amounts of accident damage expect they renew their claim with insurer. It might seem challenging for an insurance claim to be reopened at first. However, it’s the best method to prevent paying for losses you didn’t notice immediately with your money.
Situations When an Insurance Claim Can be Reopened
There are some circumstances where an insurance provider might be more willing to reopen a claim. For instance, if the first claim was closed for lack of evidence and you got a new one, the insurance provider will reopen the claim. Furthermore, if a policyholder has a good reason to think the first claim was closed because of fraud or misrepresentation, that individual may be able to ask for the claim to be reopened.
The following are some situations where an insurance claim can be reopened even after accepting settlement;
Multiple parties were involved
If you are involved in a car accident with multiple parties, you can make a claim with insurance provider of each individual. Therefore, you can still get settlement from other parties even if you have reached an agreement with one of them.
You found more damages
An insurance claim can be reopened if you discover more damages that weren’t immediately apparent. For instance, if you got into a car accident, you might not notice the magnitude of your injuries until after few months or years later. Also, an insurance claim can be reopened for home insurance if you find past undiscovered property damage like mold growing at the wall and structural issues.
Got new evidence
Evidence does not appear all at once like magic in actual life, unlike police drama on TV. An insurance claim can be reopened if you discover new evidence after settling, like witness statements or video footage.
Bad or inadequate repairs
When you file a claim with home insurance, the provider must approve repairs before reimbursement when you file a claim. Then, an insurance claim can be reopened if the approved repairs were bad or inadequate leading to more damages in your home.
If Your Insurance Company Acted In Bad Faith
Insurance companies have a task to manage your claim with fairness and good faith. In a case when you noticed you were misled or the provider acted in bad faith, then you can file a new legal against the provider.
The following are some instances of bad faith;
- The policy’s terms or relevant facts were purposefully misrepresented by the insurer.
- The insurer neglected to look into the claim in a timely and appropriate manner.
- The insurance company postponed processing your claim by, for example, requiring you to submit duplicate and extra paperwork.
- The insurance company did not get in touch with you in a timely and reliable manner.
- During the claims process, the insurer falsely accused you of fraud or other misconduct.
- The insurance company declined to discuss the settlement sum.
- The provider threatened, duped, harassed, or intimidated into collecting the low settlement offer.
If a lawyer finds evidence of bad faith, you will be able to file a lawsuit against the provider and demand payment for financial losses with improper management of the claim. Moreover, your first car accident cannot be reopened by a bad faith claim. However, the insurance provider will be liable if you were compelled or duped into accepting an unreasonable little settlement.
Final Thoughts
Generally, immediately you accept a settlement release form, your insurance claim cannot be reopened. Also, your insurance claim cannot be reopened because you are not happy with your settlement. However, if the insurance provider closed your claim due to coverage exclusion, you have limited option to reopen a claim. Lastly, you may not be permitted to reopen claim if the filing deadline has passed.
