What to Do If Your Insurance Claim Is Denied

Insurance companies deny claims more often than most people realize — and many denials are wrong. Whether it's health insurance, auto insurance, homeowner's insurance, or disability insurance, you have the right to appeal and fight for the coverage you paid for. Understanding the appeals process can turn a denial into an approval.

1. Get the denial in writing and understand the reason

Insurance companies are required to provide a written explanation for every denial. Common reasons include "not medically necessary," "out of network," "pre-existing condition," "policy exclusion," or "insufficient documentation." The specific reason dictates your appeal strategy.

2. Review your policy carefully

Read the actual policy language — not just the summary. Insurance companies sometimes deny claims based on their interpretation of ambiguous language. If the policy language could reasonably support coverage, you have grounds to appeal.

3. File a formal internal appeal

Most insurance companies have a formal internal appeals process. Submit a detailed written appeal with supporting documentation — medical records, doctor's letters explaining medical necessity, repair estimates, or other evidence that addresses the specific denial reason.

4. You can request an external review

If your internal appeal is denied, you often have the right to an independent external review by a third party not affiliated with the insurance company. For health insurance, this right is guaranteed under the ACA.

5. File a complaint with your state insurance commissioner

Every state has an insurance department that regulates insurance companies. Filing a complaint often triggers a review of your case and can be surprisingly effective — regulators have leverage that individual consumers don't.

Start a Free Chat Find a Consumer Rights Attorney

More on this topic: Consumer Rights & Finance

Need a consumer rights attorney? Browse lawyers for Consumer Rights & Finance

NotALawyer.com provides general legal information, not legal advice.