On behalf of Faricy Law Firm, P.A. posted in Bad Faith Insurance Claims on Friday, April 21, 2017.
As technology changes, so does the insurance industry. Getting help after an unfortunate situation is now available at the touch of a button on a smart phone. Some people are leery of the personal data that smart phones and apps tend to collect about users, but this could actually be a benefit if an insurance company acts in bad faith.
Since the birth of the iPhone in 2007, smart phones have become an essential part of our daily lives, but our phones aren't the only things becoming smarter. Smart home devices like Google Home and the Amazon Echo can manage the use of lights, ovens, heating and cooling systems and even water heaters.
Like a smart phone, each of these smart home integrated devices generates thousands of data points on how a person uses it and how the appliance operates. How could this information help in a home insurance claim?
How a home appliance malfunctions determines if it's covered by insurance
Home insurance not only covers the structure of the house, but it also covers the valuable possessions inside of it. Home appliances like a refrigerator, oven or water heater are an essential part of the family lifestyle. Replacement or repair can be expensive, and if it has to be done unexpectedly, can be devastating to a family's budget and overall wellbeing.
Whether an appliance stops working because of normal wear and tear or a lightning strike can determine if it is covered by home insurance. Although we think the insurance company will look out for us when we need them following a severe thunderstorm or flooding, they could quickly dispute a claim on a home appliance.
By examining the data on a smart home device, users and insurance companies can determine the source of the defect and whether or not the appliance was functioning properly before the event. According to Claims Journal, even some tech-savvy insurance companies are investing in the use of smart devices to better assist with home insurance claims.
The process is complex, but professional help is available
The process of filing a home insurance claim and dealing with data from a smart device sounds complicated - and it is. Insurance companies could act in bad faith, and a technology company may dispute a user's right access his or her own data. Because smart home devices are an emerging technology, many of the rules are still being written.
After a lightning strike or natural disaster, homeowners need the rules of their insurance policy to apply to their case. That is why legal help is available from a law firm that specializes in personal home insurance disputes.