What to Do If Your Mortgage Insurance Claims are Denied
Homeownership comes with a cost, and an expensive one at that. For many young adults who are transitioning from rental properties to single-family homes, financing remains a critical hurdle. And as inflation continues to impede the capacity for people to afford homes, the mortgage sector remains an important source of financing for many potential homeowners.
However, there will be cases that will prevent people from paying off their mortgages. Disability and job loss are just some of the situations that can make it hard for you to make timely payments. A home is a necessity, after all, and up until you recover from these physical and financial contingencies, you will have to protect yourself from defaulting on your mortgage. No doubt, before you come to this point, you should already have mortgage insurance.
Mortgage insurance is basically a type of insurance that covers your mortgage liabilities when you’re financially incapable to do so. It’s a useful tool, but it’s also one that’s so complex you will eventually be denied for withdrawing your claims out of necessity.
Now, there are lots of factors that can cause a denial, but in any case, you will have to assert your claim. Here’s a quick guide on what you can do when you think you’re unlawfully disallowed from receiving your claims.
1. Review your agreement
The best way to prove you’re unfairly denied your mortgage claims is to refer back to your terms and read through the provisions. Maybe you have overlooked the finer details that justify the denial? Perhaps you have only sifted through the whole policy without re-evaluating the total value of your mortgage protection policy?
Rushing through the process when you’re applying for mortgage insurance could be the prime reason why you’re in this situation in the first place, so you might want to review the agreement you have signed. Better yet, if you haven’t applied for mortgage insurance yet, make sure you read all the fine print before you sign your initials.
2. Gather evidence
If you see any disparities in your policy with an insurance seller, you may as well document them. This may prove valuable to your later on if you’re planning to contest the denial in court, which could leave you earning more funds on account of losses and damages.
That said, make sure you keep a record of anything your mortgage insurance provider might require from you when you’re planning to receive your claims. At this point, you might also want to talk to your insurance provider and see if you can settle the matter internally.
3. Launch a lawsuit
When push comes to shove, you will have to flex your muscles and get the claims you were prevented from getting. You will need lawyers for insurance denial who can help you parse through complex terms and make it easier for you to get your claims. With expert legal representation, you can increase your chances of getting ample mortgage protection plus extra cash from damages.
If you have recently received a letter of denial, don’t fret. With the approaches above, you can essentially secure your claims and, more importantly, your home!
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