How an Insurance Bad Faith Claim Can Help You Recover

Written by AskTheLawyers.com™

How an Insurance Bad Faith Claim Can Help You Recover
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Insurance bad faith is a term used to describe when an insurance company fails to deal fairly with the people they insure, in order to reduce or deny a valid claim they would otherwise have to pay in full. Unfortunately, insurance bad faith is more common than many people think.

Whenever you find yourself dealing with an insurance company, it’s important to remember that they make their profits by accepting monthly insurance premiums from policyholders and holding onto as much of those premiums as possible. This can result in unfair denials or reductions of valid claims, adding to both the financial injury and mental and emotional stress a person may be experiencing. If you believe you may be suffering from insurance bad faith, contact an insurance bad faith attorney as soon as possible. Insurance bad faith is a serious allegation that needs to be thoroughly investigated and dealt with accordingly.

A policyholder who has experienced an unfair denial of a valid claim can seek recovery via an insurance bad faith claim.

An insurance bad faith claim is a lawsuit filed against an insurance company for allegedly failing to uphold their end of the contractual agreements they make with their customers. However, the laws regarding insurance bad faith can vary from state to state, so it’s important to talk to an attorney in your area before filing. In a successful claim, the insurance company will be liable to pay back not only what they owed the policyholder to begin with, but may also be required to pay compensatory damages for the policyholder’s suffering and even punitive damages intended to deter the company from similar conduct in the future.

Some red flags which may indicate you are experiencing insurance bad faith include the following:

  • The insurance adjuster assigned to your claim fails to respond in a timely manner or at all.
  • The insurance adjuster makes requests for additional evidence that seem arbitrary to the sincerity of the claim.
  • The insurance adjuster offers a settlement amount that seems unreasonably low based on the policyholder’s damages and contractual entitlement.
  • The adjuster or other insurance representative seems to be intentionally misinterpreting or confusing you with policy language.
  • The adjuster or other insurance representative seem to be deliberately misinterpreting your records or evidence for the claim.
  • You experience repeated delays in the insurance company paying your claim.
  • The insurance adjuster requires you to pay part of the settlement yourself outside of your contractual obligations.
  • The adjuster or other insurance representative fails to conduct an adequate investigation of the issue.

If you are experiencing or have experienced any of the above red flags, you might be suffering from insurance bad faith. The purpose of insurance is to make sure you are prepared to deal with unexpected and unfortunate expenses. This safety net is something that people pay what often feel like exorbitant insurance premiums each month to have ready.

When an insurance company refuses to pay a valid claim in part or totality, it is important to talk to an attorney who can help translate the policy language and detect any insurance bad faith which may be going on. Insurance bad faith is a serious allegation that needs to be taken seriously and acted upon if suspected. To learn more about how an insurance bad faith can help in your recovery, or for help filing, reach out to an insurance bad faith attorney as soon as possible.

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