What to Do if Your Insurance Company is Stalling: A Comprehensive Guide
Why Insurance Companies Stall on Claims
If you’ve ever filed an insurance claim only to find yourself waiting endlessly for a response or payout, you’re not alone. Unfortunately, insurance companies sometimes intentionally delay processing claims to pressure policyholders into settling for less. Understanding why they do this can help you protect your rights and take effective action.
Insurance companies may intentionally delay the processing of claims to minimize their financial payout. They often rely on the policyholder's frustration, hoping that the longer they drag out the process, the more likely the claimant will settle for less than they deserve. This is particularly common in cases where claimants are under financial pressure due to medical bills or property damage.
One primary reason for stalling is to take advantage of the claimant’s lack of resources or legal knowledge. Insurance companies know that the longer they delay, the higher the chances that the claimant will accept a quick, lowball offer. Additionally, stalling tactics are often used to push claims past the statute of limitations, effectively voiding the claimant’s ability to pursue compensation.
Another reason is to leverage time to gather information that may work against the claimant. For example, they might delay processing while investigating the claim more rigorously than necessary or while trying to find inconsistencies that could justify a denial or reduction in payout.
Insurance companies may also drag their feet as a standard business practice to manage cash flow, especially during periods of high claims volume, such as after a natural disaster. In some cases, the delay is a calculated risk on their part, assuming that some claimants will give up entirely, saving the company money.
The Consequences of Delayed Insurance Claims
Delays can be more than just frustrating—they can be financially and emotionally draining. Stalling tactics may result in missed deadlines, delayed repairs, or prolonged financial hardship. Additionally, the prolonged wait can lead to an increased burden on policyholders, who may struggle to cover immediate expenses while waiting for the insurance payout. Knowing how to respond when your insurance company stalls can make all the difference in receiving a fair settlement.
How to Protect Yourself from Bad Faith Practices
Insurance companies have a legal obligation to process claims fairly and promptly. However, if you suspect bad faith practices, it’s important to take proactive steps to document the delay and seek professional assistance when needed. Start by understanding your policy thoroughly and documenting any inconsistencies in the insurer’s communication or actions. Being prepared can significantly strengthen your position when dealing with bad faith insurance practices.
Understanding Insurance Claim Delays
Common Reasons for Insurance Claim Delays
Insurance companies might delay claims for various reasons, some legitimate and some questionable. High claim volume, particularly after natural disasters, can cause processing backlogs. In other cases, insurers may claim they need more information or time to investigate.
Difference Between Legitimate Delays and Bad Faith Tactics
Legitimate delays include thorough investigations or a lack of complete documentation. Bad faith tactics, however, include intentionally slow responses, unreasonable document requests, and lowball settlement offers.
Legal Obligations of Insurance Companies
Under insurance laws, companies must act in good faith when handling claims. Unreasonable delays can violate state regulations, making it essential to know your rights as a policyholder.
Common Tactics Insurance Companies Use to Stall Claims
Deliberate Lack of Communication
Failing to return calls or emails is a common strategy. Insurers may hope that your frustration leads to accepting a lower settlement.
Repeated Requests for Documentation
Insurance companies may repeatedly ask for documents that you’ve already submitted, hoping to delay the claim process.
Switching Adjusters Frequently
When your claim is reassigned to multiple adjusters, it can cause confusion and delay. This tactic is often intentional to slow your progress.
Offering Lowball Settlements
Insurers may offer an unreasonably low amount initially, knowing that some policyholders will accept it out of financial desperation.
Misrepresenting Policy Details
Some insurers may falsely claim that your loss isn’t covered or misinterpret your policy terms to justify the delay.
Delaying Decisions Under the Pretext of Investigation
Citing an ongoing investigation as a reason to delay payment without valid cause can indicate bad faith practices.
Steps to Take If Your Insurance Company Is Stalling
Step 1: Gather All Documentation and Records
Maintain thorough records of all communication with your insurer, including phone logs, emails, and physical documents. Having a well-organized file will support your case if you need to escalate the matter.
Step 2: Keep a Log of All Communications
Document the dates, times, and content of every conversation. This log can be crucial evidence if you decide to file a complaint.
Step 3: Maintain Professional Follow-Up
Send polite, persistent follow-up emails and letters. Clearly state your expectation of timely responses and keep copies of everything.
Step 4: Escalate to a Supervisor or Higher Authority
If your adjuster isn’t responsive, request to speak to a supervisor. This can sometimes prompt faster action.
Step 5: File a Formal Complaint with State Insurance Regulators
If you believe the delay is unreasonable, file a complaint with your state’s insurance regulatory agency. These agencies hold insurers accountable for bad faith practices.
Step 6: Seek Assistance from a Public Adjuster
When the insurer won’t cooperate, a public adjuster can handle communication on your behalf. At Shoreline Public Adjusters, we advocate for policyholders and ensure that insurance companies fulfill their obligations.
How Shoreline Public Adjusters Can Help
Our Approach to Handling Stalled Insurance Claims
At Shoreline Public Adjusters, we have extensive experience dealing with delayed and stalled claims. Our team takes a proactive approach to ensure your case doesn’t fall through the cracks.
Why Working with a Public Adjuster Makes a Difference
Unlike insurance company adjusters, we work solely for you—the policyholder. We handle negotiations, documentation, and claim follow-ups, allowing you to focus on recovery.
Success Stories: Helping Policyholders Get Fair Compensation
We’ve helped countless clients recover what they deserve after insurers stalled their claims. From residential property damage to large commercial losses, we ensure that insurance companies are held accountable.
Areas We Serve: Florida, Minnesota, Wisconsin
Our team at Shoreline Public Adjusters is licensed to serve policyholders across Florida, Minnesota, and Wisconsin. Whether your claim involves property damage, natural disasters, or business interruptions, we’re here to help.
Contact Shoreline Public Adjusters for Assistance
If you’re struggling with a stalled insurance claim, reach out to Shoreline Public Adjusters today. Our team is ready to advocate for your rights and secure the compensation you deserve. Call us now for a free consultation.
Shoreline Public Adjusters, LLC
780 Fifth Avenue South
Suite #200
Naples, FL 34102Email: hello@teamshoreline.com
Phone: 954-546-1899
Fax: 239-778-9889
