Illinois Personal Property Insurance Attorneys

We Handle Personal Property Insurance Court Cases

With our vast experience and deep understanding of insurance law in personal property insurance court cases, our Illinois-based law firm is well-equipped to provide you with the legal representation you need.

We have a proven track record of successfully navigating the complex legal landscape in Illinois, offering our clients the peace of mind they deserve. Trust us to win your case and strive for the best possible outcome in your personal property insurance dispute.

If an insurance company is denying a claim or is refusing to assist in the ability for you to repair or replace valuable personal property, call us today at (312) 971-2581 or book an appointment online.

Steps to Take When Your Insurance Company Won't Pay Your Personal Property Insurance Claim in Illinois

If your insurance company refuses to pay your personal property insurance claim in Illinois, the first step is to thoroughly review your insurance policy. Familiarize yourself with your rights, responsibilities, and the terms and conditions of your coverage.

Misunderstandings or discrepancies often arise from policyholders not fully understanding their insurance contracts. That means that it is always a good idea to check your insurance coverage and the types of insurance that you actively pay for. Remember, there are many different types of insurance. When you receive your insurance quote from an insurance company, make sure that you review the policy and terms with the agent or an independent insurance attorney if you are insuring property that is of high value.

For instance, life insurance does not pay for personal injury matters as compensation in a case. Personal property insurance is very specific and usually requires that property be appraised and that appraisal must be sent to the insurance carrier.

Due to the complex nature of the law and insurance policies, it is very easy to have some of these issues confused and often, insurance companies will try to implement unreasonable delays before a settlement offer is made. Making sure that you have the appropriate personal property coverage is something you should check on yearly. If you are unsure and a claim has arisen, please call our office for a consultation.

Not only will you need the right insurance, but you need to make sure that you have the appropriate amount of coverage for your claim. Check with your insurance carrier to gain a copy of your declaration page before meeting with an attorney.

Next, reach out to your insurer for a comprehensive explanation of why the claim was denied. Be sure to document all your interactions with the insurance company, including dates, times, and details of conversations. This information is crucial in case you need to escalate the matter later on.

If the denial of your claim seems unfair after your initial research and correspondence with the insurance company, consider obtaining a second opinion. Consult a public adjuster or a lawyer specializing in insurance disputes. These professionals can evaluate your situation, guide you on the best course of action, and help you navigate the complex legal landscape.

If your insurer continues to deny your claim unjustly, you can file a complaint with the Illinois Department of Insurance. They can provide guidance and possibly intervene on your behalf. However, this should be seen as a last resort after exhausting all other avenues.

Pursuing a lawsuit against your insurance company might be another option, but this is typically a lengthy and expensive process. Therefore, it is essential to first seek legal advice to ensure it's the best course of action.

Call the attorneys at Chicago Family Attorneys, LLC at (312) 971-2581 for a consultation regarding your insurance litigation matter. If you have a valid claim that has not been paid by an insurance company, we are the firm to assist. With experience as defense attorneys as well as plaintiffs attorneys, we know the ins and outs of insurance law and litigation to win your matter.

Warnings on Insurance Policy Coverage

It is important to understand the policy that you are purchasing. The insurance industry in the United States has created many types of policies, but they may not be what you need.

If you do not understand the policy and the types of coverage that are available to you, you may not have the appropriate insurance to cover the cost of replacement. This is to make sure that you can protect your belongings with the right coverage amounts. Each coverage option is unique in policies in some way and you will want to make sure that a covered peril does not cost you or a family member more than you expected.

Policies will cover the following types of property usually for most clients if you choose to get policy riders:

• Jewelry
• Watches
• Antiques
• Musical Instruments
• Art
• Family Heirlooms

Often, policyholders and customers of insurance companies are surprised when filing a claim because there can be difficulty in having the insurance company pay for replacement. It's important to have dwelling coverage for your home and coverage for your personal belongings.

Disadvantages of Actual Cash Value Coverage Policies

A large consideration when purchasing an insurance policy is whether you would like to be paid what is called the "Cash Value ACV" or the "Replacement Cost".

The average insurance policyholder will usually think that the replacement is the same, but they are not. The only commonality between the two is that the insurance company has to write a check, but you may be at a loss if there is not the appropriate amount of coverage for your items.

Actual Cash Value (ACV) refers to the reimbursement value given to the covered property within the policy that is damaged or destroyed. The Actual Cash Value is calculated by taking the replacement cost of the property and subtracting depreciation.

Depreciation of the property accounts for age, wear and tear, and obsolescence. ACV policies look to the present day value of property instead of what it would cost to buy new. This often results in lower payouts because property is considered to have a diminished value over time.

An Example of Actual Cash Value (ACV) on a Rolex Submariner Watch:
A collector of watches purchased a Rolex Submariner watch several years ago for $20,000. Upon purchasing the watch and appraisal, he took the watch to his insurance agent to get the watch insured, but he was unaware that the Actual Cash Value policy may not pay for a complete replacement of the watch.

Over the years, the value of the Rolex Submariner actually increased, but the ACV method focuses on the purchase price minus depreciation. The watch was stolen one evening while the watch insurance policy was still in effect. The Rolex collector called his insurance agent and made a claim immediately, but several weeks later, he was offered much less than the replacement value of the watch.

It is important to remember that depreciation factors could include the age of the watch and perceived wear, reducing its value in insurance terms, even if its market value has appreciated. For instance, if the insurance adjuster estimates a 40% depreciation due to age and usage, the payout would be:
ACV= Replacement Cost−Depreciation = $20,000−(40%×$20,000)=$12,000

With an ACV policy, the Rolex owner would only receive $12,000 for it. This amount may be less than the watch's original value. This situation can leave the policyholder without the appropriate funds to replace the watch without adding personal funds. This example shows a clear disadvantage of Actual Cash Value policies for items that appreciate in value or maintain a high resale value like luxury watches or jewelry.

Benefits of Replacement Cost Coverage Policies

Replacement Cost Coverage is the best insurance policy option for policyholders. This coverage compensates the policyholder for the cost of repairing or replacing damaged or lost property without deducting for depreciation.

This type of coverage pays the actual cost to replace the damaged or lost item with a new item of like kind and quality at current prices, regardless of the item's age or condition prior to the loss. This is a prime option for those who have highly valuable property that should be insured in case of loss or damage.

Handling of Attorney's Fees in Illinois: Hourly vs Contingency Basis

In Illinois, attorney's fees can be structured in one of two ways: on an hourly basis or on a contingency basis. Hourly fees are straightforward - attorneys charge for each hour they spend working on your case. Rates can vary widely based on factors such as the lawyer's experience and the complexity of the case.

On the other hand, a contingency fee arrangement means that the attorney's payment is contingent upon winning your case. In this scenario, they receive a predetermined percentage of the settlement or verdict amount. This model can provide accessibility for clients who may not have the immediate funds for an hourly rate, while also providing motivation for the attorney to achieve the best possible result. It's important to note that each method has its advantages and it's crucial to understand and agree upon the fee structure before proceeding with legal representation.

Often in insurance litigation cases, attorneys will take the matter on a contingency basis, but may take the matter on with an hourly-based fee agreement. Ultimately, it is up to your attorney and the circumstances in which they believe your case may best suit their style of litigation.

The Role and Implications of Insurance Examinations Under Oath in Illinois

In the realm of personal property insurance disputes in Illinois, Examinations Under Oath (EUOs) play a critical role. An EUO is a formal interview conducted by the insurance company's attorney, where the policyholder is placed under oath and questioned about the claim.
This process is often used in cases involving high-value items such as jewelry and other valuables, as it allows insurers to thoroughly investigate the legitimacy of the claim and if there is suspicion that there is fraud involved, your matter may be referred to what is called a Special Investigations Unit (SIU) within an insurance company.

These SIU divisions of insurance carriers such as State Farm or AllState tend to focus on fraud and areas in which claims tend to cause alarm for insurance carriers. Often, high end pieces of jewelry that have been lost or stolen are given more scrutiny against the insurance policyholders than is reasonable.

The policyholder's cooperation during the EUO is required by most insurance policies and refusal can lead to the denial of the claim. Understanding the implications and handling of EUOs is therefore essential to successfully navigating an insurance dispute in Illinois.
Managing Attorney Aaron Korson has experience representing insurance companies as a defense attorney and he has represented individuals who have not been paid on time for their insurance claims.

This last year, Attorney Aaron Korson represented an individual who was not receiving the proper funds for his claim against State Farm. Due to Managing Attorney Aaron Korson's experience and knowledge, he knew that if State Farm did not pay for the valid claim timely that the carrier would be subject to a potential bad faith insurance claim and would be penalized for a wrongful act.

Eventually, State Farm paid the settlement demand after a second examination under oath and funds were released for the claim. The matter at hand involved over $100,000 in jewelry. Although this is not a typical case, the matter was settled quickly and payment was issued in full for the stolen jewelry.

If you believe that you are not receiving your compensation for your claim timely or an insurance company is failing to abide by the terms of their policy, contact our firm at (312) 971-2581. Chicago Family Attorneys, LLC handles every aspect of life that you may encounter. Whether you and your family are affected by family law matters or insurance law matters, we will be there every step of the way.

Navigating Bad Faith Insurance Claims in Illinois: Recognizing Unfair Practices and Taking Action

Bad faith insurance claims arise when insurance companies fail to deal fairly with the people they insure. In the context of personal property insurance, this might occur when an insurer unnecessarily delays payment, denies a valid claim without a reasonable basis, or fails to conduct a prompt and thorough investigation of a claim. Bad faith practices are not just unethical, but they are also illegal under Illinois law.

To qualify for a bad faith claim against an insurance company in Illinois, a policyholder must demonstrate that the insurer lacked a reasonable basis for denying policy benefits and that they knowingly or recklessly disregarded the lack of a reasonable basis when denying the claim.

It's important for policyholders who believe they may be victims of bad faith practices to consult with experienced legal professionals, as these cases can be complex and difficult to prove. An attorney specializing in insurance law can review the details of the claim denial, provide guidance on potential next steps, and help navigate the process if a bad faith claim is indeed viable.

Penalties for insurance companies that engage in bad faith practices can be severe under Illinois law. If an insurer is found to have denied a claim without reasonable cause, they may be required to pay the full amount of the claim, along with any legal fees incurred by the policyholder.

Illinois law allows for punitive damages in cases where the insurer's conduct is found to be vexatious and unreasonable. These damages are intended to punish the insurance company and deter similar conduct in the future. The Illinois Supreme Court has clearly made note that undue delays will not be allowed in Illinois state courts.

The Illinois Department of Insurance can give fines or revoke an insurer's license for breaking rules in the state. It's important to note, however, that each case is unique, and the specific penalties will depend on the nature of the insurer's conduct and the harm caused to the policyholder.

If an insurance company acts in bad faith in assisting in replacing your belongings or compensation for your ability to repair the insured items within your policy, seeking legal counsel is a choice that should be taken. Acts of bad faith and failure to pay occur frequently. To avoid having to pay to repair your damaged jewelry or luxury watch, consult with an attorney who is well versed in insurance law.
If you need assistance with a personal property claim in Illinois, call us today at (312) 971-2581 or book an appointment online. Chicago Family Attorneys, LLC is here for you and your family for every claim that you need assistance with.