Challenging Insurance Claim Denials: Fair Settlements for Underinsurance Disputes

Insurance policies are designed to provide financial protection when disaster strikes. But what happens when an insurer refuses to pay out, claiming underinsurance? At CEC, we help clients navigate these disputes and ensure they receive fair settlements.

Real-Life Case Study: Reversing a Wrongful Claim Denial

One of our clients faced this issue after a burglary resulted in £25,000 worth of jewellery being stolen. When they submitted a claim, their insurer refused to pay, arguing that the total value of possessions exceeded £100,000, allowing them to void the policy for underinsurance.

However, when we examined the case, our team identified a crucial oversight in the insurer’s decision. The policy included internal limits for specific asset categories, such as clothing and high-risk items. When these limits were correctly applied, the maximum sum payable at the time of the theft was £94,000, meaning the overall policy limit was never exceeded, negating the claim of underinsurance.

The Insurance Act 2015: Ensuring Fair Treatment

We also highlighted a key protection under the Insurance Act 2015, which safeguards policyholders from unfair penalties for innocent misrepresentation. Even if underinsurance had been present, voiding the policy entirely was not the correct legal remedy. The Act ensures that policyholders are treated fairly when they make honest mistakes in disclosing information.

Thanks to our intervention, the insurer reversed its decision, and the claim was paid in full.

The Difference CEC Makes

At CEC, we don’t just assess claims, we provide vital support for fair outcomes. Our team of expert loss adjusters brings deep industry knowledge, ensuring every claim is handled with precision and care. We specialise in commercial and high-net-worth claims, working closely with brokers to deliver the best possible results for their clients.

By meticulously reviewing policy wording and insurer decisions, we help policyholders secure the settlements they’re entitled to. Whether it’s challenging underinsurance disputes or pushing back against unfair claim denials, we provide the expertise, strategy, and advocacy needed to achieve the right outcome.

If your clients are facing claim disputes, underinsurance accusations, or policy voidance, let CEC step in to advocate on their behalf. Our expertise ensures that insurers apply policy terms correctly, so your clients get the settlements they deserve.

Contact CEC today to find out how we can support you and your clients in navigating complex claims.