Despite the mystique around an insurance policy, there is nothing special about it. It is in fact a pretty standard regulated commercial contract between you and your insurer. If your insurance policy is cancelled or your claim is rejected, you have four options available to you.
- Get a second opinion and take advice – Before you decide on what you want to do next and how you want to respond to your insurer get a second opinion and take advice. At The Right Claim we can give you independent, expert advice on your policy and your position after your claim has been rejected or your policy is cancelled.We understand how insurance companies work. We know how they minimise your claim and how to present a successful claim.
- Go to the Financial Ombudsman Service – You can go to the Financial Ombudsman which is an independent official body, established by Parliament, for settling disputes between UK-based financial companies and their customers. Its service is COMPLETELY free.Firstly, you have to follow the complaints procedure in your insurance policy. This will require you to specify the issue of complaint and how you would expect this to be resolved. This is then considered by the insurance customer service team. If the decision is then overturned by the customer service team, then you will receive a Final Decision letter.
You will need this letter before going to the Ombudsman. Once raised with the Ombudsman an independent adjudicator reviews it firstly and if they agree with the insurers decision you can then ask for it to be raised by the Ombudsman. Their decision will then be final.
The benefit of going to the Ombudsman is that it is a free service but more importantly they take in to account not just the black and white facts of your policy. They consider the reasons why your contract is regarded as invalid, whether the terms are ambiguous, what is good practice and what is reasonable in the circumstances.
However, the one real downside to this option is the time involved in going through this process. So you have to be in a position to wait and have patience in order to get a resolution to your situation.
Keep in mind though that approximately 50% and more of cases have been won by householders and the insurers decision is over turned.
Top tip – you can view previous rulings made by the Ombudsman so you can present your case in the most effective way possible.
- Take them to court – In order to take your insurer to court you have to demonstrate how they have breached the contract. It is important to know that you may be required to prove that the loss or damage you experienced was as a direct result of the event you were insured against. For example, the burglary or flood that damaged your home and property.If however your dispute with your insurer is over the value of your claim then suing them might be a more effective option. In either case you have to be confident that you will win your case as costs can be prohibitive and if you fail to win then you could be liable for your insurer’s costs too.
So always take advice and get a second opinion.
- Accept their decision and pay for it yourself – It’s easy to feel defeated particularly given the stressful circumstances, however we would always recommend getting a second opinon and advice on your case before accepting their decision.