What is Insurance Law?

People have insurance for their houses, their cars, and themselves. If anything breaks, they file an insurance claim, and the company sends out their adjusters. The claims process should take, at most, a few weeks or months.

When it does, you need an insurance attorney. Insurance law may be part of other legal practice areas, such as personal injury, medical malpractice, or real estate law. If you’re in a car accident and file a personal injury claim, you deal with insurance law. What does all that mean for you?

Definition of Insurance Law
Insurance is a type of contract. The policyholder, or “insured,” pays a premium to the insurance company (the “insurer”). In exchange, the company promises to pay for certain types of losses (“coverage”) if they occur.

Insurance coverage and payouts depend on the type of insurance and the nature of the claim. Auto insurance and homeowner’s insurance cover property damage. If you’re in an auto accident, collision insurance will pay for repairs but not medical bills. You need a different type of coverage for that.

In personal injury and property damage cases, attorneys work on a contingency basis so that attorney’s fees are part of the award if you win your case. A contingency fee agreement may also include court costs to reimburse filing fees.

Insurance Disputes
Despite bad press and comedians’ jokes, most insurance companies are not trying to cheat their clients. If policyholders have paid their premiums faithfully, they deserve a fair settlement offer for their claim.

In some situations, such as an auto accident, more than one insurance company may get involved. If you have liability insurance, and the other driver has insurance, the two companies must determine who was at fault in the accident before agreeing on a settlement amount. Some cases, such as homeowners insurance claims after a natural disaster, depend on other agencies’ determinations.

Claimants need attorneys when the opposing side is negotiating in bad faith. “Bad faith” is a blanket term for many shady practices and includes: