I called the insurance company and they told me that I do not have a claim. What can I do?
When something goes wrong and now you have suffered a loss then you need to follow a certain procedure. You report the claim to the insurance company, usually by calling your broker or agent.
If you find out that the claim is being denied then you need to consider what steps to take next. Did you ask for the specific coverage that is being denied? If so, then understand that a broker or agent has a duty to follow your instruction and duly notify the insurance company.
If you maintain that you did indeed ask for the coverage and ideally have some documentation of this request then one of the following could occur:
- Your representative will confer with the insurance company and the coverage will be in place.
- Your representative will present this as an Errors & Omissions claim and the coverage will be in place.
- You will not have coverage and will have to pay the financial loss yourself.
- You can complain to the insurance governing body in your province/territory in hope of receiving compensation.
Another situation that you need to consider is, why was I not offered this coverage? If it is something that an adviser should have at least told you was available then perhaps the error is not yours. Again this could go back to the Errors & Omissions coverage that agents and brokers carry.
Be aware that there are certain situations, such as flooding, where the insurance companies will deny coverage but the government will then step up and help out with the catastrophic losses.
As in any situation, it is important that you take control of your insurance. Ask questions and get what you deserve.
