New Jersey homeowners who carry flood insurance willingly pay hard-earned premiums every month for a reason: they want to know they’ll be protected in the event of disaster.
What happens, though, if disaster does strike and the insurance companies simply shrug their shoulders and deny policyholders’ claims?
That happens more often than you might think, and it’s becoming a major issue in the wake of Hurricane Sandy.
Insurance Companies Denying Claims for Hurricane Sandy Victims
Superstorm Sandy caused unfathomable destruction, much of it due to water damage and flooding. Insurance companies were alarmed by the amount of money they might have to pay out, and so they decided to dispatch investigators to their policyholders’ homes.
The goal, they said, was to make sure that homeowners weren’t fraudulently blaming preexisting damage on the hurricane.
Unfortunately, as is all too common, the insurance companies may now be using those investigations as an excuse to deny perfectly legitimate claims. If that’s true, it serves as a glaring example of insurance bad faith in New Jersey.
As reported in The Huffington Post, thousands of homeowners are taking action to prove that some of the inspectors created “bogus reports to give skeptical insurers ammunition to deny claims.”
Now both FEMA and New York’s attorney general are investigating, and homeowners who’ve been denied a claim may now stand a better chance than ever in taking legal action against their insurers.
Claim Denied? Get Help from a New Jersey Plaintiffs’ Lawyer
Insurance companies have a legal obligation to investigate claims fairly. If they don’t — or if they deny a valid claim without adequate justification — they can be held liable for insurance bad faith in New Jersey, which may entitle policyholders to additional and substantial compensation.
Superstorm Sandy inflicted havoc on New Jersey. The good people of our state who paid for insurance because they believed they could trust their providers now deserve to have that trust validated.
If you filed a claim with any insurance company in New Jersey and have been denied, please contact The Law Offices of James C. DeZao, P.A. today. We want to help.