Mortgage Protection Insurance Denial Lawyers

Housing prices in British Columbia, especially in Vancouver and the lower mainland area, have been climbing for years now.  What naturally comes along with climbing housing prices is larger and larger mortgages.  What would have been the purchase price of a large home 20 years ago is now the down payment on a townhouse and when disaster strikes and someone dies, falls ill, becomes disabled or loses their job, their mortgage still needs to be paid.  In times like these Mortgage Insurance, sometimes called Mortgage Protection Insurance, is purchased to help cover mortgage payments or to pay off the balance of a mortgage depending on the insurance policy and the situation.

Mortgage Protection insurance, like all other types of insurance, can be denied by the insurance company when you make a legitimate claim.  When that happens, you need a lawyer with expertise in insurance denials to make sure you get the insurance benefits you are entitled to.

Different Kinds of Mortgage Protection Insurance

There are different types of mortgage protection that are available for purchase, these can include:

Every mortgage protection insurance policy is different, and the specific language of each policy should be carefully considered in cases of insurance denials.  An experienced insurance denial lawyer can help you understand the strength of your case.

Reasons for Denying Mortgage Protection Insurance Claims

There are many reasons an insurance company may give you for denying your legitimate mortgage insurance claim, including:

  • misrepresentation or error in the mortgage insurance application 
  • the specific circumstances surrounding a death
  • exclusion clauses in the insurance policy 
  • failure to adhere to the terms of the policy
  • incorrect or unclear medical information
  • an insurance company interpreting the terms of the policy in their favour.

Sometimes the denial of your mortgage insurance is not due to the actions (or inactions) of the insured, but the insurance broker or insurance agent who processes your mortgage insurance application.  In these cases, you can sue to recover the insured amounts under your mortgage insurance policy from the negligent insurance agent or insurance broker.

There are also cases when it is the negligence of the bank or mortgage lender that cause a denial of your mortgage insurance claim.  While the banks and mortgage lenders often offer mortgage insurance, it is often ancillary to their primary goal of getting you to sign the mortgage agreement.  With mortgage insurance being an afterthought, there can often be mistakes made or incorrect information communicated.  If the negligence of a bank or mortgage lender caused the denial of your mortgage insurance claim, you can sue them to recover the insured amounts under your mortgage insurance policy.

Mortgage Insurance is purchased to provide peace of mind to ensure a sudden death, injury or illness does not leave a large debt for your loved ones that they cannot afford to pay.  When a legitimate mortgage insurance claim is denied, it can be devastating.  You or your loved ones should not have to worry about losing their home at a time when they are grieving the loss of a loved one or dealing with a debilitating injury or illness.

Has Your Mortgage Protection Insurance Been Denied?

Has your mortgage protection insurance claim been wrongly denied?  If so, the first thing you should do is ensure you have a complete copy of your insurance policy and file.  Contact the insurance company and request a copy of your entire insurance file.  They may have denied your legitimate mortgage protection insurance claim, but they are still your insurance company and still owe you a duty to act in good faith.  They have to provide you with your file when you ask for it and the contents of the file will be important for your lawyer to help ensure you get a fair deal.

The lawyers at Taylor & Blair LLP have been dealing with insurance companies and denied coverage for over 30 years.  We have handled many mortgage insurance claims and have made sure that our clients get the fair compensation that they are entitled to.  

The facts of each case are unique and will turn on the specific wording of each policy.  Every policy is different, and it can take an experienced insurance denial lawyer to tell you whether or not you have a case against your insurance company.

Mortgage Protection Insurance Denials & Timelines

There are strict timelines in which you must act if you need to sue to enforce your rights under your mortgage insurance policy.  If you fail to act within these timelines, you can be statute barred from bringing your claim forward.

If you have a denied mortgage insurance claim, contact the lawyers at Taylor & Blair LLP today.