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Written by AskTheLawyers.com™
The term “insurance bad faith” refers to an insurance company’s failure to deal justly with the people they insure in order to avoid paying a claim. In these situations, a claim can be filed against the insurance company by a policyholder who has been harmed by the company’s show of bad faith. There are a variety of red flags that may indicate that insurance bad faith is at play, so it is important to remain aware of how they are treating you. If you feel that your loss is not being taken seriously or compensated fairly, do some research into what you should and shouldn’t expect from an insurance company. If you suspect that you or a loved one are suffering from insurance bad faith, contact an insurance bad faith attorney to learn more about your options and how to get the help you and your family need.
Whenever you find yourself dealing with an insurance company, it can be helpful to remember that the way they make their money is by reducing and denying as many claims as possible, regardless of their validity. This means that policyholders need to be on the lookout for signs that an adjuster might be using unscrupulous methods to avoid paying out a claim. However, the accusation of insurance bad faith is serious, and often the mention of it in a conversation with the adjuster might be enough to deter it from happening. However, the next step if the insurance bad faith continues is to file a letter of complaint with the insurance company itself and contact an attorney.
Anyone with insurance of any kind should be aware of the typical warning signs which indicate that insurance bad faith might be occurring. This can be an extremely damaging phenomenon, and often results in a compounding of the financial, mental, and emotional struggle a family goes through after an accident. It is imperative that any suspicions of insurance bad faith are addressed immediately.
Let’s go over some important warning signs that could indicate insurance bad faith:
The rules about what constitutes bad faith vary from state to state, and can be difficult to prove. This is why it’s a good idea to speak to a lawyer and learn what your rights are, as well as learn more about the process of filing a claim against an insurance company. If an insurance company can be proven to have behaved in bad faith, the company is then liable to pay not only what they owed the policyholder based on the initial contractual agreement, but also additional damages that occur as a result of the delay or refusal to pay an insurance claim. Other damages which might be included in an insurance bad faith claim are:
If you or a loved one have suffered from insurance bad faith, seek legal counsel to learn about your options for recovery as well as how to begin the process of filing a claim if necessary.