What Is Misrepresentation, and How Can It Void Your Policy?

Misrepresentation involves the act of improperly answering specific questions that were on the application you initially completed to obtain an insurance policy. If a question is answered incorrectly, or if you give a false statement, the insurance company may have approved the purchase of a policy that they would have normally denied – and it gives the insurance company standing to void your policy altogether.

The insurance company has the right to void the policy for misrepresentation, because it counts as a breach of contract.

Why do insurance companies make false misrepresentation claims?

Obtaining compensation from insurance companies isn’t always easy. Remember – the ultimate goal of the insurance company is to keep the money it makes, not pay it out. Depending on the situation, the insurance company might want to make claims of material misrepresentations to avoid paying out a larger sum of money to the policyholder.

I made an honest mistake on my application; now what?

People make mistakes. If you make a mistake on your policy application, the best thing you can do is call your agent and tell the truth: you made a mistake, and you need to adjust your policy to reflect what actually happened. Understand that your policy may change as a result, so it’s a good idea to sit down and review the policy in total, once you have access to it.

My claim has been denied for misrepresentation; what do I do?

It is a common occurrence for policyholders to have their claims denied outright, and to be offered significantly lower compensation amounts, when they make a claim. If the insurance company denies your claim – and especially if you are denied for misrepresentation – you should seek legal counsel immediately. Insurers often try to claim that policyholders have misrepresented their losses, or have misrepresented their needs in the initial policy, and that their claims should be denied on these grounds. You’re going to need an attorney who can help you prove that your claim is just, that your application was truthful, and that you are entitled to compensation for your losses.

Warhurst Law is here to help you with your claim if you have been denied. From our office in Mobile, we serve clients in Alabama, Florida, Louisiana, and throughout the Southeast. Simply call our office today at 251.207.1296 or complete a contact form to get help with disputing the denial of your claim.

 

 

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