Signs Your Insurance Company is Acting in Bad Faith
Insurance policies are like a safety net. If a hurricane, fire, or other disaster damages your home or business, it’s safe to say you would expect your insurance company to quickly pay your claim, right? Unfortunately, the insurance claim process isn’t always as straightforward as it should be.
What Is Bad Faith?
Your insurance policy is more than just an agreement for coverage. It’s a contractual obligation between you and your insurance company. Just like you must pay your monthly premiums to keep coverage, your insurance companies must fulfill a number of requirements if a claim is filed. Failure to meet those requirements is often a sign of bad faith.
Bad Faith Warning Signs
Some bad faith warning signs are clear as day, others are not. If any of the examples below are similar to what you are experience now with your claim, you may want to consider speaking with a skilled Property Damage Insurance Claim Attorney.
- The insurer delays, undervalues, or denies payment without a valid reason
- The insurer fails to acknowledge and reply promptly upon notification of a claim.
- The insurer fails to affirm or deny coverage of claims within a reasonable time upon receipt of claim and/or proofs of loss.
- The insurer tries to settle a claim for less than what is fairly owed or attempts to substantially diminish a claim requiring an insured to initiate litigation.
- The insurer requests a release.
- The insurer fails to provide reasonable explanation for denying a claim
How to Deal with Bad Faith Tactics
If you’ve filed a claim and it has been denied request that the claims adjuster provide written documentation stating the reasons for his or her actions. If the claims adjuster refuses to comply with your request for documentation, you should send the insurance company a letter via certified mail requesting it.
Carefully document all of your discussions with the claims adjuster to make a timeline of events. You should keep a journal of any correspondence you have with the insurance company including the date/time of communication and who you spoke with. Always document the adjuster’s actions (or failure to act/follow up) and the date on which they occurred.
Most individuals are not insurance experts. For the average person, it can be quite difficult to understand whether or not they were treated fairly by their insurance company. If your claim has been denied, you may not instinctively know whether the insurance provider had proper justification to deny the claim or not.
In such cases, it’s important to obtain help from an experienced lawyer who understands the issues surrounding insurance law and breaches of contract. If an insurance company wrongfully denies your claim, it has breached its contractual obligations to reimburse you for your losses. The situation is even worse when the insurance company uses bad faith tactics to avoid paying what you are rightfully owed in compensation. FPJL will aggressively represent you to ensure you get the money you are owed without any further delay by the insurance company. Our team of attorneys have decades of experience providing affordable representation to Individual and Corporate policy holders facing a wide range of denied, delayed or underpaid insurance claim issues.
Contact our law firm today at (305) 300-3000 for a free consultation!