Contact an Experienced Insurance Attorney if You Receive a Reservation of Rights Letter From Your Insurance Company

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What is a reservation of rights letter?  What should you do if you receive a reservation of rights letter from your insurance company after submitting what you believe is a valid claim?  The reservation of rights letter is a signal that your insurance company is going to attempt to get out of covering part or all of your claim.  This is an immediate and substantive red flag and you should contact the experienced insurance coverage attorneys at the Watkins Firm immediately for a free consultation at 858-535-1511.

The reservation of rights letter is sarcastically referred to as a “denial letter” within the insurance community.  This letter says in no uncertain legal terms that while your insurance company may begin to handle your claim as if it was valid under the coverage of your policy, they reserve the right to deny part or all of your coverage at any point in the future.  It is important to understand that your own insurance company is not “on your side” in these matters.  The insurance company exists for one reason: profit.  They will use any and all legal means to get out of their obligation to pay your claim.  In some cases, their actions rise to the level of “insurance bad faith” which is against California law.

It is quite common for insurance adjusters and claims representatives to “mistakenly” misinterpret your policy’s coverage and tell you your claim is not valid when in fact it is.  They believe you will simply get lost in the legalese and give up.  Many people unfortunately do.  You will not make this mistake.  If you are an individual or a business entity who faces an outright denial or receive a reservation of rights letter from your insurance company for what you believe to be a valid claim on an insurance policy we invite you to contact us for a free consultation at 858-535-1511.  Learn about your rights under California’s customer-friendly laws and how the Watkins Firm can and will help to protect your interests.