First-Party and Third-Party Claims
Insurance disputes are typically divided into two main categories: “First-Party” claims and “Third-Party” claims. A first-party claim is brought by the insured party directly against the insurer. This is usually done for a loss they sustained, such as losses caused by a fire.
In contrast, a third-party claim is brought by the insured against a third party — someone not listed on the insurance policy. The conflict usually involves the scope of the coverage as well as determining who is liable for the damage.
For both first-party and third-party claims, the dispute is typically resolved through formal litigation. The legal proceedings aim to determine the rights of the parties under the policy coverage, and to issue an appropriate remedy for the injured party’s losses.
Types of Insurance Claim Disputes
There are various types of insurance claims. Understanding the different types can help you select the attorney with the experience you need for your claim.
Common types of insurance claim disputes include:
- Residential Property Insurance Disputes: These involve disputes over policies that cover your home. These often involve compensation after an accident occurs at a home, or when a natural disaster strikes.
- Commercial Property Insurance Disputes: Commercial property insurance disputes cover many business-related losses, such as loss of inventory or payroll issues. They can also involve property damage as in residential property claims.
- Bad Faith Insurance Disputes: These types of disputes involve situations where an insurance company did not act fairly and honestly toward a policyholder when handling a claim. This can occur in a wide range of insurance settings.
- Hurricane Insurance Claims: These are a specific type of property claim dealing with damage from hurricanes, such as those caused by Hurricane Laura. They often deal with issues such as severe wind damage or temporary housing while the property is being repaired. Hurricane insurance is a common concern for many residents.
- Car Accident Insurance Claims: Such claims involve coverage for property damage, injuries, and other losses that may be associated with car accidents. There may be overlap with healthcare coverage issues for the injuries.
Thus, insurance litigation can involve a wide range of disputes happening in various areas of one’s life. You should select an insurance claim lawyer who has knowledge in dealing with the particular issue at hand. At Pierce Skrabanek, our insurance claim attorneys have the experience needed to provide you with thorough representation for your case.
When You Should Contact an Insurance Claims Lawyer
Most consumers have never dealt with an insurance conflict. It can be confusing and intimidating, and you might not know where to begin. You should contact an insurance claim lawyer if you are facing:
- Claims where you and an insurance adjuster have disagreements early on
- Complex claims involving many parties
- Claims where it is difficult to establish fault
- Large claims involving severe damage, such as after a hurricane, tornado, or flood
- Insurance claims where you suspect fraud may be a factor
Regarding the last point, insurance fraud can take many forms. It can involve several types of conduct, including:
- Denying claims without a thorough review, often in the face of sufficient evidence
- Delaying claims, which can sometimes have the effect of reducing the amount of compensation the person receives
- Deflecting claims by saying the damage was caused by another factor not covered by the policy
- Undervaluing or understating the amount of damage done to the property
Insurance fraud is a serious violation that can lead to severe legal consequences, sometimes criminal charges. Be sure to contact a lawyer if you suspect fraud is an issue. Filing a lawsuit can help expose widespread practices of fraud and ensure it doesn’t get repeated for other consumers.