4 Things You Should Understand About Insurance Bad Faith
Whether you own a home, run a business, or are paying off a new car, you are probably required to maintain some kind of insurance. Medical insurance, car insurance, and homeowner’s insurance are just some of the types of insurance coverage we deal with often. On our end, we have to maintain a part of the “deal” to keep the coverage – like pay a premium by a certain date. For paying that premium, the insurance offers financial coverage when certain events happen. For us to obtain the coverage, the event has to be specifically covered under the insurance – and must meet the requirements of the coverage.
When we don’t pay for our insurance premiums, our coverage is cancelled. When an insurance company doesn’t uphold their end of the coverage by providing you the benefits you are rightfully entitled to, it is called “insurance bad faith” and you can take legal action against an insurance company for acting in bad faith. But there are a few things you should understand about insurance bad faith.
- “Bad faith” is a term used to describe an insurance company acting unfair to policyholders. Just because an insurance company denies a claim does not mean they are acting in bad faith. Some conditions that would represent bad faith would be when an insurance company:
- Denies coverage without a valid reason
- Fails to perform the rightful investigations
- Delays payment without just cause
- Uses deception or misrepresentation of coverage to avoid paying a claim
- Offers a lower settlement without reasonable cause
- Wrongfully cancels a policy
- If you suspect that your insurance company is acting in bad faith, it is best to consult with an insurance bad faith attorney immediately. You are going to have to provide evidence that you have done everything within your power to communicate and work with the insurance company. Be sure to reach out to the insurance company, ask questions, try to get any issues resolved before you file a claim.
- Documentation is going to help your lawsuit if you need to file one. Be sure to thoroughly review your contract to be sure of exactly what is covered and what you should be entitled to under the coverage. Keep track of all communication with the insurance company. Include dates and names and notes from the conversations. Follow up each phone call with an email so that you have a paper trail of all conversation. Before you file a claim, file an appeal with the company to get any errors or mistakes resolved. If nothing happens, send a demand letter that strongly explains to the insurance company that you are not going to accept less than what you are entitled to and that you plan to take legal action.
- Filing an insurance bad faith lawsuit takes a lot of work. There is paperwork to file and deadlines to meet. If one step is not followed, the entire lawsuit could be in jeopardy. Hire an insurance bad faith attorney that has experience to guide you through the process and to deal with the insurance’s lawyers. You should not have to deal with this type of lawsuit without legal representation.
Professional Insurance Bad Faith Attorney In Billings
In Billings, Tourtlotte Law Firm has insurance bad faith attorney’s who are experienced and qualified in different types of insurance claims. Contact our professional team for a consultation today.